STRATEGIC FORMATION Flashcards
Group 3
are the strengths and opportunities that you have over your competition.
Competitive advantages
It’s an attribute that allows a company to achieve superior profits compared to its rivals and generates more value for the company, customers, and shareholders
Competitive advantages
is the favorable position an organization seeks to be more profitable than its rivals.
Competitive advantages
Some common factors that give business competitive advantage include:
The team
Unique access to technology or production methods
A product that no-one else can offer (protected by ip law or patent, etc)
Ability to produce and sell at a lower cost (known as cost leadership)
Brand and Reputation
is a crucial step in strategic planning.
Identifying competitive advantages
They are necessary for the growth of the company, so they must be extremely solid.
Identifying competitive advantages
used by the company to produce a product, to manage customer relations or to improve internal relationships can be considered a competitive advantage.
Technologies
Distinctive customer service can also be a competitive advantage.
Customer service
This occurs when a company is able to produce goods or services at a lower cost than its competitors.
Cost leadership
This could be due to economies of scale, efficient production processes, or access to cheaper raw materials. As a result, the company can offer lower prices while maintaining profitability.
Cost leadership
In this strategy, a company offers products or services that are distinct from competitors, usually by focusing on quality, innovation, or unique features.
Differentiation
A strong brand or exceptional customer service can also be a key differentiator.
Differentiation
This strategy involves targeting a specific segment of the market, whether it’s a particular demographic, geographic area, or type of customer.
focus/niche
A company using a focus strategy can either pursue cost leadership
or differentiation within that niche.
focus/niche
involves dividing a large homogenous market of potential customers into clearly identifiable segments.
Market segmentation
Customers are divided based on meeting certain criteria or having similar characteristics that lead to them having the same product needs.
Market segmentation
Segments are made up of customers who will respond similarly to marketing strategies.
Market segmentation
They share common interests, needs, wants and demands.
Market segmentation
What are the benefits of market segmentation?
Greater company focus
Better serve a customer’s needs and wants
Market competitiveness
Market expansion
Targeted communication
is the stage where you decide which segments you created during the segmentation phase are worth pursuing, at the same time identifying and selecting a specific group of people to receive a marketing message
Targeting
CRITERIA IN TARGETING
SIZE
DIFFERENCE
REACHABILITY
PROFITABILITY
BENEFITS
Your audience segments must have enough potential customers to be worth marketing to. If your segments are too small, you may not get enough conversions to justify your marketing efforts.
Size
There should be a measurable difference between any two segments. The lack of it leads to unnecessary duplication of efforts.
Difference
The segments should be accessible to your sales and marketing teams and not be marred by technical or legal complications
Reachability
