Strategies

Question 1

Explain SWOT analysis

Answer 1

Identifies external (market) opportunities which a company can use its strengths (resources/ competenties) to capitalsie on

Question 2

What is the companies competive strategy

Answer 2

Cost leadership (low cost/ mass market)
Differentiation (Differentiatior / niche market)
Cost focus (Low costs Niche market)
Differentiator focus (Differenciator/ niche market)

Question 3

Explain growth strategy

Answer 3

Market penetration - Existsing product/ existing market
Product development - New product/ existing market
Market development - Existing product/ new market
Diversification - new product/ new market

Question 4

Two other types of Growth Strategy

Answer 4

Horizontal integration - taking over competitors
Vertical integration - backward vertical (suppliers) forward vertical (customer activities)

Question 5

Name 4 method of growth

Answer 5

Organic - lower risk, cheaper slower
Acquisition - faster, risk of overpaying, integration issues
Joint venture - compine resources and competencies and share risk. Risk of conflict and trust issues
Franchise - rapid, little capital investment, loss of control, reputational risk