strategy Flashcards
strategy
plan of action that develops a business competitive advantage; achieved by doing different things and doing things differently
cost leadership vs. differentiation
differentiation: deliver distinctive value - “do different things”
cost leadership: drive down costs - “do things differently”
generic strategies
strategies that can be applied to any size or form of business (cost leadership/differentiation)
broad or narrow; 1. cost leadership 2. focused low cost 3. broad differentiation 4. focused differentiation
economic logic
how firm makes money above its cost of capital
focused differentiation
marketing of a differentiated product to a narrow market
best cost provider
hybrid of low cost provider and differentiation strategies, considered to be suboptimal for most companies
cost leadership
focus on minimizing costs, often results using product price as competitive edge
focused low cost
low cost, narrow focused market; focus on specific segment such as buyer segment or geographic segment
staging and pacing
sequence and speed of strategic moves
organic growth
growth rate of company excluding takeovers, acquisitions, mergers
vehicles
how a company will achieve its objectives
arenas
where firm will be active and with how much emphasis
strategy diamond
framework for checking and communicating a strategy; economic logic/arenas/staging/vehicles/differentiators
economies of scale
making things in large quantity, making it to scale is more cheaper (more production = drive costs down)
economies of scope
cost advantages a business enjoys due to larger range of operations