PART 1: From the idea to the business model Flashcards
Segment
customers are not all the same and shall be diveded in homogeneous groups
Differentiation
strategy designed to supple a product/service that customer preceive as being different in ways relevant to them
Differentiation shall not be
unprofitable
Unique Selling Proposition
what we do better than other competitors and what customers want
Value proposition –> strategy you should avoid
same benefit for higher price
Your value proposition should not…
be easy to copy
Value chain
the set of activities to conduct the business to deliver your competitive advantage
The 4Ps
product, price, promotion, place
7Ps (service)
process, people, physical evidence
4Cs
customer value, cost, convenience, communication
3Cs
Customers, competitors and companies
The 3Cs are used for…
Developing a positioning strategy
what is the 15% rule at 3M
3M employees are encouraged to spend 15% of their time on developing new projects
Product Life Cycle
introduction, growth, maturity and decline
Bad description of services
that “can be stock”
Marketing myopia
focusing only on one aspect of the marketing attributes without focusing on what the customer actually wants
One example of marketing myopia
Focusing just on quality and not on the actual demand of the customer
BGC matrix orders products along relative market share and…
growth rate
which is not one of the 4 basic growth strategies as defined in the Ansoff Matrix
- vertical development
- market development
- diversification
- product development
- market penetration
What aims market penetration strategy
Increase its market share
How does market penetration can be executed
Decreasing prices to attract new customers, increasing promotion and distribution efforts and acquiring a competitor in the same market
How does a product development strategy can be executed
Investing in R&D to develop new products, acquiring a competitor’s product and merging resources to create a new product that better meet the needs of existing market and forming strategic partnerships to gain access to each partner’s distribution channels
How does market development can be executed
Catering to different customer segment, expanding regionally (domestic market) and expanding internationally (foreign market)
What is related diversification
There are potential synergies between existing business and the new product/market
What is unrelated diversification
There are no potential synergies between existing business and the new product/market
What is vertically integrated diversification
Forward integration is “entering the business of customers” and backward integration is “entering the business of suppliers”
What is horizontally integrated diversification
The firm acquires one or more than one business that are in similar business and at the equivalent level of production-marketing chain
When Facebokk and Instagram merge, it was a…
horitonzal merger
A company produces and sell a high number of diesel cars in Europe although the current trend seems to favor electrical vehicles; in the following SWOT one proposition is not at its correct place
weakness - market…
which “force” will lead to higher profitability in an industry
no possible substitute product
Michael Porter defines strategical positions such as niche players, industry leaders and the position “stuck in the middle” by establishing a relationship between ROI (return of investment) and
market share
Michael Porter’s 3 generic strategies
cost leadership, differentiation and focus (or niche) strategy
A blue ocean strategy consists in…
create a new market and make competition irrelevant
Cost leadership
focuses on becoming the lowest-cost producer in the industry, achieve economies of scale, cost control and reduction and the goal is to offer products or services at lower prices than competitors while mantaining profitability
Peter Drucker once said “corporate cultures eats strategy for breakfast”; this means?
corporate culture can get a company successful although its strategy is noy optimum
What is ROE
return on equity
Target shall be “SMART”; this acronym does not stand for
- specific
- measurable
- relevant
- time-bound
- arguable
What is blue ocean strategy
The metaphorical “red” signifies the blood in the water due to intense competition. Represents existing industries where competition is fierce, and companies compete for a share of the existing market
The metaphorical “blue” signifies calm waters without competition. Represents new, uncontested market space where competition is irrelevant because the market is created rather than fought over
What is the most secure payment term for an importer
consignment
What does extraterritorial jurisdiction imply?
it is the legal ability of a government to exercise authority beyond its normal boundaries
NAFTA was replaced by a new treaty which took effect on July 1st 2020
True, the NAFTA agreement has been replaced by a USMCA
What is the competitive market strategy (by P. Kotler)
according to market share: leader/challenger (refers to a company that is actively competing against larger and more dominant players within a specific industry), cooperation and niche
