STRAMAN FINALS Flashcards
The process of creating a competitive advantage by designing goods or services to customer needs.
Product Differentiation
The plan of action strategic managers adopt to use a company’s resources and distinctive competencies to gain a competitive advantage.
Business-Level Strategy
The way a company decides to group customers based on important differences in their needs or preferences, to gain a competitive advantage.
Market Segmentation
Desires, wants, or cravings that can be satisfied by means of the characteristics of a product or service.
Customer Needs
A strategy of trying to outperform competitors by doing everything possible to produce goods or services at a cost lower than they do
Cost- Leadership Strategy
A strategy that focuses on increasing profi tability by reaping the cost reductions derived from economies of scale and location economies
Global Standardization Strategy
A strategy that focuses on increasing profi by customizing the company’s goods or services so that provide a good match to tastes and preferences in different national markets.
Localization Strategy
Economic benefits that arise from performing a value creation activity in the optimal location for that activity
Location Economies
A strategy in which firms try to simultaneously achieve low costs, differentiate the product offering across geographic markets, and foster a flow of skills among different subsidiaries in the company’s global network of operations.
Transnational Strategy
A company’s use of capital such as stock, debt, or cash to purchase another company
Acquisition
Acquiring or merging with industry competitors to achieve the competitive that come with large size.
Horizontal Integration
The strategy a company adopts when it focuses its resources and capabilities on competing successfully within a particular product market
Concentration on a Single Industry
The strategy of offering customers the opportunity to buy a complete range of products at a single, combined price
Product Bundling
An agreement between two companies to pool their operations and create a new business entity
Merger
A process whereby, in their effort boost company performance, managers focus not the company’s functional activities but on the business processes underlying its value creation operations.
Reengineering
The movement of a company away from its present state toward some desired future state to increase its competitive advantage and profitability
Strategic Change
A cooperative agreement between two or more companies to work together and share resources to achieve a common business objective.
Strategic Alliance