Mgt 4335-Chapter 6

Question 1

What is business level strategy?

Answer 1

Actions-planned steps.
Provide value-giving stuff people in market.
Competitive advantage-being the best/keeping up of it.
Specific product markets-competitive market place.

Question 2

T.How to design business level strategies?

Answer 2

1. who are our customers? Same-monogynous/1 product for everyone.
2. What need do we satisfy? Why do people buy our product?
3. How will we go about meeting customer needs?
   Exploit distinctive competencies (do what we are good at)-sweet pot
   Position ourselves in the external environment (put competition at a disadvantage).

Question 3

T.What is strategic Sweet Spot?

Answer 3

The strategic sweet spot of a company is where it meets customers’ needs in a way that rivals can’t, given the context in which it competes.

Question 4

T.What are generic Strategies?

Answer 4

Cost Leadership
Differentiation
Focus

Question 5

T*.What is Cost Leadership?

Answer 5

Low cost: Careful management of relationships; Wider our customer base (one size fits all approach); hard to deferred this strategy.
Efficient facilities: vigorous cost reduction; fight overhead control; avoidance of margin.

Question 6

T.What is differentiation?

Answer 6

Create differences: create the perceptions in industry wide that our product is unique and more valuable to customer.
Customer must be aware of uniques.

Question 7

T*.What is focus strategy?

Answer 7

Choose/focus on a smaller group or geographic market and attempts to serve only this niche, to exclusion of others.
Cost leader or differentiator ?
Cost leader-Lone Star overnight focus on TX/OR/LA.
Differentiator-Prince focus on tennis, Ryka-women’s aerobics shoes.
“Mobility barriers”-very difficult to switch.
Needles that keep companies from switching generic strategies in its industry.

Question 8

T*.What is competitive advantage?

Answer 8

A firm’s resources and capabilities that enable it to overcome the competitive forces in its industries.
Sustainability of competitive advantage.
Hypercompetition:
The idea that it is difficult to sustain competitive advance because of the intense rivalry and pressure to constantly improve.
Competitive advantage can’t be sustained.