Terminology 5 Flashcards
What is an Entry-Level Product?
A basic, cheapest version of a product designed for beginners or new customers.
What are Low Entry Barriers in an industry?
It is easy for new businesses to enter the industry.
What are High Entry Barriers?
It requires significant investments in equipment, knowledge, and other resources, making it hard for new companies to enter.
What does a Concentrated industry mean?
There are few companies dominating the industry (e.g. steel or tyres industries).
What is a Fragmented industry?
There are many small companies, with no single company dominating the market (e.g. millions of restaurants worldwide).
What does Acquisitive mean in a company context?
The company is eager to acquire or buy other businesses, including competitors.
What are Strategic Acquisitions?
Acquiring companies or assets that support a company’s long-term goals.
What does Unwieldy refer to in a conglomerate?
A holding company with many subsidiaries that is difficult to manage profitably.
What are Chaebols?
Large, family-owned business conglomerates.
What is Skunk Works?
A small, specialized team working on innovative projects, often in secret.
What is a Flagship Brand?
The most important or well-known brand of a company, often representing its core values.
What is a Generic Brand?
A brand that offers basic products without a widely recognized name, usually at lower prices.
What is Brand Dilution?
The weakening of a brand’s value due to overextension or poor-quality products.
What is Brand Stretching?
Extending a brand to new products or markets outside its original category.
