STRATEGIC POSITIONING AND PORTER'S GENERIC STRATEGIC Flashcards
What is competative advantage
Competitive advantage: The unique characteristics of an organisation that differentiate them from their competitors and help to generate revenues.
What are sources of competative advantage
Sources of competitive advantage:
Brand image
The workforce
Economies of scale
Product design
Geographical location
Customer service
What is strategic positioning
Strategic positioning: The process of choosing the methods an organisation will use to differentiate themselves within the market in which they compete.
For example:
Low price
High levels of perceived benefits
What is the market axes
The market axes - is the organisation focusing in mass market (making a lot of sales) or is the organisation focusing on a niche market (a smaller sub market within a mass market, consumers with similar preferences and needs)
What is the source of advantage axes
The source of advantage axes - You can either be a low cost provider (can be effective if the quality of the products or services is good enough) or a differentiation strategy, where you differentiate yourself from the rest of the market.
What is cost leadership
Cost leadership - Aiming at the mass market, generally benefiting from economies of scale, able top sell good quality products and reasonable prices
What is focuesed differentiation
Focused differentiation - Highly differentiated and usually high cost product - Tailors, david lloyds, Bugatti
What is cost confused
Cost focused - Selling low price products, but picking a niche market - Poundland, skoda (not mass market)
What is differentiation leadership
Differentiation Leadership - Can be difficult as your selling a differentiated product to a mass market - Apple, nike, BMW - Mass market
EXAMPLE SHEET
https://docs.google.com/document/d/1qUXQdkxoUWAx0XDvv_dNELRkP6gBNd_Yz-YzOXdrw9s/edit
