Strategic Choice Flashcards
1
Q
Porter’s value chain analysis
A
How a business can gain a competitive advantage by breaking down into primary and secondary activities
Primary:
- Inbound logistics
- Operations
- Outbound logistics
- Sales and marketing
- Service
Secondary:
- Firm infrastructure
- Human resource management
- Technology development
- Procurement
2
Q
Porter’s generic strategies
A
Three ways to gain a competitive advantage:
- Cost leadership
- Differentiation
- Focus/niche
3
Q
Ansoff’s matrix
A
Used to make decisions about directions for growth
Existing market/Existing product - Market penetration (price cuts, marketing)
Existing markets/New products - Product development (R&D, Joint development etc)
New markets/Existing products - Market development (new regions, foreign markets, new customers)
New markets/New products - Diversification (related or unrelated)
