Moore slides Flashcards
What are the four quadrants of the Growth Share Matrix?
Stars
Question Marks
Cash Cows
Dogs
What are the two factors of the Growth Share Matrix
Market Share
Market Growth
What is a Star in the BCG Matrix?
High market share in a fast-growing industry.
Generates revenue but requires high investment.
What is a Cash Cow in the BCG Matrix?
High market share in a slow-growing market.
Generates stable profits with little investment.
What is a Question Mark in the BCG Matrix?
Low market share in a fast-growing industry.
Potential to become a Star or fail.
What is a Dog in the BCG Matrix?
Low market share in a slow-growing market.
Generates little or no profit.
What is the Experience Curve?
It shows how a company’s costs decrease as it gains more experience in producing a product or service.
What are the five steps of the I/O Model?
Study the external environment
Locate an attractive industry with high potential for returns.
Formulate a strategy.
Acquire or develop necessary assets and skills.
Implement the strategy
Achieve above-average returns.
What are the five steps of the Resource-Based Model?
Identify the firm’s resources.
Determine the firm’s capabilities.
Assess the competitive advantage provided by these resources.
Locate an attractive industry with high potential for returns.
Develop and implement a strategy that best exploits these resources.
Earn and sustain above-average returns by continuously improving resource use.
Whats strategic vision?
A picture of what a firm wants to be and achieve.
Whats strategic mission?
It specifies business to compete with & customers to serve.
What is the sixth force?
The strength of complements
Complementors are companies that offer products or services that enhance the value of another firm’s product when used together.
What is the who, what, and how in Business Level Strategy
Who: the market segment
What: which needs to satisfy
How: core competencies needed to satisfy needs
