Midterm Slides (anything could've missed...) Flashcards
Is there a single agreed definition of strategy?
No,
has many definitions ranging from Porter, to Barney, etc
What happens with products in red oceans?
Well the level of competition turns the waters red and the products into more of a commododity
What are some examples of key blue ocean creations?
Ford Model T, Chrysler minivan, Apple Personal computer, etc
These were ALL created via value pioneering actually, with existing technologies. None of them was an entirely new technological discover outright
For the strategies to fight low cost rivals, what are companies three options?
attack
coexist uneasily
become low cost players themselves
A two pronged strategy of being low cost and high only delivers results when…
The low cost operation is launched offensively to make money, NOT as a purely defensive ploy to hurt low-cost rivals
Define a sustained competitive advantage
Enables a company to maintain above-average projects for a number of years
Price competition increases when buyers experience low switching costs and…
the industry is characterized by high fixed costs
What is the objective of mapping strategic groups?
The objective of mapping strategic groups is to identify direct competitors
What is the industry life cycle when it is still niche, and the uncertain technology is advertised as solving a “solution”?
Embryonic
What is the industry life cycle when the market has expanded beyond niche, and customers are starting to become informed about it?
growing
What is the industry life cycle when demand approaches saturation and industry excess capacity builds up causing customers to gain bargaining power?
Shakeout
What is the industry life cycle when the market is volatile with a proliferation of products and markets served?
Mature
What is the industry life cycle when the market is consolidated and contracts?
Decline
At what stage does demand reach total saturation?
Maturity
According to the VRIO model, what are the two criteria that must be satisfied in order to sustain a competitive advantage?
inimitability and nonsubstitutability
