Strategy Flashcards
Define Ansoff Theory
Relates to how a company looking for growth can choose their marketing strategy
What are the four Ansoff strategies?
Market penetration
Product or service development
Market development
Diversification
Define market penetration?
AT: When a business markets in an existing market with an existing product/service
Not much MR needed
Info on competitors and customers
Define product or service development
AT: When a business markets into an existing market with a new product/service
May require new skills
Products need to be different
R and D neceserry
Define market development
AT: When a business markets into a new market with an existing product/service Ways to do it include: new geographical markets New usp Different pricing policies
Define Diversification
When a business markets into a new market with a new product/service
Risky because their is no experience
Define Mission Statement
A short way of a business expressing their main intent
What elements should a mission statement have
Memorable
Inspiring
Timeless
Define coorporate objectives
Targets that relate to the business as a whole
What elements should coorporate objectives have?
Should flow from the vision statement
Relates to the business
Usually set by senior management
Mission statements should be
Specific Measureable Achieveable Realistic Time related
What are some limitations of a mission statement?
Can be unrealistic
Can be a waste of time
Legal issues
Leads to conflicts
Define competitive advantage
An advantage over competitors gained by offering consumers greater value, either by means of lower prices or greater benefits
What is porters generic strategies?
A strategy to create a competitive advantage
What are the four Porters Generic Strategies?
Cost leadership
Narrow
Differentiation leadership
Differentiation focus
What is cost leadership?
PGS: When selling prices are broadly similar, the lowest cost producer will enjoy the highest profits
Effective use of technology
Lean production methods
What is cost focus?
PGS: When a lower cost advantage is seeken in a small number of market segments
E.G. Tesco value ketchup
What is differentiation focus?
PGS: Classic niche market strategy
Business aims to differentiate within just one or a few number of goods
What is differentiation leadership?
PGS: business targets larger markets and aims to achieve comp adv all over the market
Pp products
What is the boston matrix?
A marketing planning took which helps managers have a good product portfolio
What are the four elements of the boston matrix?
cash cow
Dog
Star
Question mark
What is the star in the BMX?
High market share and high growth
E.G. Iphone X
What is the ? Mark in the BMX?
High market growth low share
E.G. Iphone 11
What is the cash cow in the BMX?
High market share but low market growth
Maturity
What is the Dog in the BMX?
Low market share and growth
Decline
What are some limitations of the BMX?
Doesnt support all business models
Market isn’t defined
High ms doesnt always mean high profits
How can we create value?
Architecture
Reputation
Innovation
What is a strategy?
Long-term direction of the business
What the business does the meet aims and objectives
Proactive
What is tactics?
Short or medium term decisions
How the business implement a strategy
Reactive
What do we use for external influences?
PESTEL
What does PESTEL stand for?
Political Economical Social Technological Environmental Legal
How does politics affect external influences?
Businesses should check how they may be affected by a change in govt
Govt intervention policies
Influence of the EU and Brexit
How those economics affect external influences?
A business should focus on the economy
Look at inflation
Check unemployment rates
SOTEC
How does social affect external influences?
Demographics: Segments
Cultural mix
Social trends
How does technological affect external influences?
Automation Innovation R and D in the industry New computer systems Trading online
How does law affect external influences?
Health and safety at work
Data protection
No discrimination
How does environmental affect external influences?
Weather
Wildlife
Scarce resources
What are porters 5 forces?
Theory that 5 forces determine profitability
What are Porters 5 forces?
Bargaining of suppliers Bargaining of customers New entrants Threats of subsides Competition
