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Question 1

BCG Matrix Problems

Answer 1

1. Does not talk about profitability
2. Fails to define market share
3. Ignores comp factors and
4. considers only growth and share
5. no globalisation factor
6. Inc Share , Decreased Profitability

Question 2

GE Matrix Advantages

Answer 2

9 Cell Matrix
Considers many variables
High / Med / Low Class
Multiple Factors to assess solutions

Question 3

Focus Business Strategy

Answer 3

Conditions -

1. Market is Big
2. Expertise
3. Potential for growth

Benefits

1. Only provider
2. Small Quantity
3. Deals with threat - Subs and Buyers

Risk Involved

1. Target segment disappears
2. Identification of segments
3. Competencies
4. Can’t move to other segments

Question 4

Differentiation Strategy

Answer 4

Conditions 
1. Knows competition
2. Market is large 
3. No standard product 
4. Brand loyalty 
5 .Customer needs diversified 

Benefits

1. Reduces rivalry
2. Threat of buyers and suppliers

Risks

1. C.L uses, rivalry increases
2. Copied by others
3. Needs continue changes
4. Innovation affects strategy

Question 5

Cost leadership strategy

Answer 5

Conditions

1. Price based competition
2. Standardised product
3. Low customer loyalty
4. Bargaining power is high

Benefits

1. Threats from buyers
2. Substitute
3. New firm
4. profits can be reinvested

Risks 
1. Over emoahsis on efficiency 
2. Inc cost because of technology
3. Copied easily 
4 .Cost push inflation

Question 6

Pricing based strategies

Answer 6

1. Cost based
2. Customer
   Penetration, Skimming , Loss leaders , Predatory , Psychological
   3 .Competition based

Question 7

Blocks of competitive advantage

Answer 7

1. Superior efficiency
   2 Innovation
2. Quality

Question 8

Examples of competitive advantage

Answer 8

1. Low cost
2. Differentiation
   3 .Brands
3. Strategic Assets
   5 .Product Line
4. Outstanding Management