Strategic direction - positioning strategies Flashcards
what are two types of competitive advantage
cost advantage and differentiation advantage (Ryanair has cost advantage)
What are Porter’s three generic strategies
cost leadership, differentiation and focus
what is porter’s strategy of cost leadership
gaining the lowest cost of production for a given level of quality
what is porter’s strategy of differentiation
a strategy that requires a product with unique attributes which consumers value so that they perceive it to be better than rival products.
what is porter’s focus strategy
where businesses focus on niche market segments to achieve either cost advantage or differentiation
what is a tool for deciding competitive strategy
porter’s strategic matrix
what are the axes on porter’s strategic matrix
market scope and competitive advantage
what matrix shows pricing and differentiation strategies
bowman’s clock
what are the positions on Bowman’s clock
1 - Low Price, Low added value, 2 - low price, 3 - Hybrid, 4 - Differentiation, 5 - focused differentiation, 6 - increased price, standard value, 7 - increased price, low added value, 8 - low added value, standard price
which sections of bowman’s strategic clock are destined to fail
increased price, standard value.
increased price, low added value
low added value, standard price
what does position 1 refer to
products with low added value. It is only successful if the products are sold in a high volume
what does position 2 refer to
cost leadership
what does position 3 refer to
modest prices with a relatively high perceived added value
what does position 4 refer to
differentiation
what does position 5 refer to
differentiation and focus section
