Business-Level Strategy: Creating And Sustaining Competitive Advantages (Chapter 5)

Front 1

Business-level strategy

Back 1

a strategy designed for firm or a division of the firm that competes within a single business.

Front 2

Generic strategies

Back 2

an analysis of business strategy into basic types based on breadth of target market (industrywide versus narrow market segment) and type of competitive advantage (low-cost versus uniqueness).

Front 3

Overall cost leadership (3-1)

Back 3

a firm’s generic strategy based on appeal to the industrywide market using a competitive advantage based on low-cost

Front 4

Differentiation (3-2)

Back 4

a firm’s generic strategy based on creating differences in the firms product or service offering by creating something that is perceived industrywide as unique and valued by customers.

Front 5

Focus strategy (3-3)

Back 5

"a firm’s generic strategy based on appeal to a narrow market segment within an industry."

Front 6

Combination strategies

Back 6

firms’ integrations of various strategies to provide multiple types of value to customers

Front 7

mass customization

Back 7

a firm's ability to manufacture unique products in small quantities at low cost

Front 8

profit pool

Back 8

the total profits in an industry at all points along the industry's value chain

Front 9

digital technologies

Back 9

information that is in numerical form, which facilitates its storage, transmission, analysis and manipulation

Front 10

Disintermediation

Back 10

the process of bypassing buyer channel intermediaries such as wholesalers, distributors, and retailers. Removing intermediaries lowers transaction costs.

Front 11

industry life cycle

Back 11

the stages of introduction, growth, maturity, and decline that typically occur over the life of an industry

Front 12

Introduction stage (4-1)

Back 12

the first stage of the industry life cycle, characterized by (1) new products that are not known to customers, (2) poorly defined market segments, (3) unspecified product features, (4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a need for financial support

Front 13

Growth stage (4-2)

Back 13

the second stage of the product life cycle, characterized by (1) strong increases in sales; (2) growing competition; (3) developing brand recognition; and (4) a need for financing complementary value-chain activities such as marketing, sales, customer service, and research and development

Front 14

maturity stage (4-3)

Back 14

the third stage of the product life cycle, characterized by (1) slowing demand growth, (2) saturated markets, (3) direct competition, (4) price competition, and (5) strategic emphasis on efficient operations

Front 15

reverse positioning

Back 15

a break in industry tendency to continuously augment products, characteristics of the product life cycle, by offering products with fewer product attributes and lower prices

Front 16

breakaway positioning

Back 16

a break in industry tendency to incrementally improve products along specific dimensions, characteristic of the product life cycle, by offering products that are still in the industry but that are perceived by customers as being different

Front 17

decline stage (4-4)

Back 17

the fourth stage of the product life cycle, characterized by (1) falling sales and profits, (2) increasing price competition, and (3) industry consolidation.

Front 18

harvesting strategy

Back 18

a strategy of bringing as much profit as possible out of the business in the short to medium term by reducing costs.

Front 19

consolidation strategy

Back 19

a firm’s acquiring or merging with other firms in an industry in order to enhance market power and gain valuable assets

Front 20

Turnaround strategy

Back 20

a strategy that reverses a firm’s decline in performance and returns it to growth and profitability