Strategic Choice Flashcards
1
Q
Strategic choice
A
Johnson and Scholes break down the issue of strategic choice into 3 distinct subheadings which are:
- on what basis do we decide to compete?
- which direction should we choose?
- how are we going to achieve the chosen direction?
2
Q
On what basis do we decide to compete?
A
Porter’s generic strategies - a firm wishing to obtain competitive advantage over its rivals is faced with two choices
1. is the company seeking to compete by achieving lower costs than its rivals achieve
or
2. what is the scope of the area in which the company wishes to obtain competitive advantage
3
Q
three generic strategies of competing
A
cost leadership
differentiation
focus
4
Q
cost leadership
A
set out to be the lowest cost producer in an industry
