Sustainable competitive advantage Flashcards

1
Q

Cluster analysis

A

Resource advantage- theres no point in being good at things if theres no demand for your product: The good starting point to statistically segment the market. Identify and class large sets of heterogeneous into smaller homogenous groups of customers or companies.

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2
Q

Cluster analysis helps us understand?

A

Preference commonality and how to cater to the different groups needs

  • what needs they have
  • what product attributes they would like
  • how market position can be improved
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3
Q

Cluster analysis variables

A
  1. Bases: foundation for segmenting (e.g. pricing, product features
  2. Descriptors: profile and eventually target the derived segments (demographic and geographic)
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4
Q

Cluster analysis steps

A
  1. Segmentation: identifying subsamples of customers that are homogenous in their base
  2. Describing: use descriptor variables to explain how the subsamples differ and can therefore be used to form efficient targeting strategies
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5
Q

SCA characterisics

A
  1. Customers care
  2. you do it better than others
  3. Its hard to duplicate

Non-subsitutable
Inimitable
Rare
Valuable

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6
Q

Customer equity

A

Customers are financial assets and should be treated as spending is investments not costs

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