Strategic Positioning Flashcards
What is Corporate Level Strategy concerned with?
The overall purpose and scope of an organisation / how to add value to business units.
What is Business Level Strategy concerned with?
The way a business seeks to compete successfully within its particular market.
What is Operational Strategy concerned with?
How different parts of the organisation deliver strategy in terms of managing resources, processes, and people.
What is a Strategic Business Unit?
An SBU is a smaller unit within a corporation with a distinct domain of activity.
How are SBUs beneficial?
They decentralise a business and allows for variation in strategy.
Who introduced the term of Generic Strategy?
Porter, 1985
What is Competitive Advantage?
Competitive Advantage is how a firm or unit creates value for its users.
What are two criteria for Competitive Advantage?
Superior quality / Greater than the cost of supply
What is Competitive Strategy?
Competitive Strategy is concerned with how a business unit or organisation achieves competitive advantage in its domain of activity.
What are the four types of Generic Strategy?
Cost Leadership, Differentiation, Focus, and Hybrid.
What is Cost Leadership Strategy?
The lowest cost organisation in the domain of activity.
What is Differentiation Strategy?
Providing uniqueness in some way that allows a higher price to be charged.
What is Focus Strategy?
Targeting a narrow segment and tailoring products or services to the exclusion of others.
What is Hybrid Strategy?
A combination of other strategies available.
What are the four main drivers behind CLS?
Lower input costs, Economies of Scale, Experience, and Product/Process design.
