UNIT 8 CHOOSING HOW TO COMPETE - Differences between porters strategies

Question 1

Cost leadership with parity involves

state or condition of being equal

Answer 1

chargin same price as rivals
butas costs are lower
profit margin is higher

helps with competitve pricing

Question 2

Cost Leadership with proximity involves

Answer 2

lower price than rivals

but cause costs are lower

still possible to make same or higher profit margins

Question 3

a differentiator can charge a higher price and still…

Answer 3

make high profit

if additional charge for the added benefit

is more than the cost of providing them

Question 4

competitive scope is

Answer 4

amount of market targeted by the bs

Question 5

broad scope targets

Answer 5

market as a whole

Question 6

narrow scope focuses on a

Answer 6

niche

Question 7

cost leadership or differentiatien can be aimed at

Answer 7

market as a whole(broad trarget)

small part (called focus strategy) - narrow scope

Question 8

according to porter a bs should decide…

continue

Answer 8

which generic strat to choose

whether to target broadly or narrowly

then pursue strategy rigorously ang aggresivley

Question 9

a business should avoid being

Answer 9

stuck in the middle

Question 10

What does stuck in he middle mean

Answer 10

not clear internally or to customers what bs strategy actually is

Question 11

porter argued a bs shoud eb ..

Answer 11

low cost or diffrenetiated

cannot combo the two - must be clear in terms of what wants to be and how it wasnts to be positioned in the mkt

Question 12

waht do some analyst disagree with and instead say

Answer 12

possible for bs to keep costs low and still try to differnetiate - morrisons