Theme 3 Topic 2 - Corporate Strategy Flashcards
Define Ansoff Matrix
Marketing planning tool which helps a business determine its growth strategy
What are the four strategies on Ansoff’s Matrix?
Market Penetration, Market Development, Product Development, Diversification
Define Market Penetration
Business focuses on selling existing products in existing markets
Define Market Development
Business sells existing products to a new market
Define Product Development
A business introduces a new product to an existing market
Define Diversification
A business sells new products to new markets
Define Porter’s Generic Strategy
Four generic strategies which can be adapted to gain competitive advantage
What the four Strategies of Porter’s Generic Strategies?
Cost Leadership, Cost Focus, Differentiation Leadership, Differentiation Focus
Define Cost Leadership
A business has the objective to become the lowest cost producer in the industry e.g. Primark
Define Cost Focus
A business seeks to be the lower cost advantage in one or a small number of markets segments - product will be basic, “me too” products
Define Differentiation Focus
A business aims to differentiate within just one or a small number of target market segments
Define Differentiation Leadership
The business targets much larger markets, aiming to achieve a competitive advantage across a whole industry e.g. Waitrose
Define Distinctive Capability
A form of competitive advantage that is sustainable because it can’t be easily replicated by a competitor
What are the three Distinctive Capabilities?
Architecture, Innovation, Reputation
Define Architecture
Refers to the contracts and relationships within and around an organisation
