Topic 4: Business Strategies

Question 1

What is the Blue ocean strategies (BOS)

Answer 1

A strategy that offer growth in revenues and profits by discovering or inventing new industry segments that create new demand. In short, making competition obsolete

Question 2

What is the Ansoff Matrix?

Answer 2

A tool that helps business decide their product and market growth strategy

Question 3

What are the quadrants in Ansoff Matrix?

Answer 3

Market penetration –> Existing products, existing markets

Market development –> Existing products, new markets

Product development –> New products, existing markets

Diversification –> New products, new markets

Question 4

What is Gap Analysis?

Answer 4

An assessment of the organization’s strategy with its environment (external) and its capabilities (internal)

Question 5

What are Porter’s Generic Strategies?

Answer 5

A tool used to determine the direction in which the organization is going

Question 6

What are the four strategies Porter’s Generic Strategies?

Answer 6

Cost leadership strategy –> Target a broad market (high demand) and offer the lowest possible price

Differentiation –> Target a broad market (high demand) but offer unique products and service

Cost focus –> Target a niche market (little competition) but offer the lowest possible price

Differentiation focus –> Target a niche market (little competition) but offer unique products and service