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18 Cards in this Set
- Front
- Back
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Porters five competitive forces
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New entrants
Substitute products The power of buyers The power of sellers Level of competition between firms |
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Cost leadership
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The lowest cost producer, prduces on a large scale and gains econemies of scale.
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How can cost leadership occur?
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Introduction of new method of production.
Discovery of cheaper supply. New technology. Improved productivity. |
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Differentiation
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The degree to which consumers see a brand as being different.
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What charcteristics can differentiation be based on?
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Superior performance
Product durability After sales service Design Advertising |
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Focus
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Porter identified the comparable approaches of firms opperating in a niche market, wher a strategy of focus on one or more market egements.
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How does focus work?
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A business will focus its attension on a market segement which is neglected by its bigger competitors.
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Ansoffs matrix
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This is another decision making tool for marketing.
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Existing product, existing market
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Low risk
They will have an option to penitrate further, consolidate present position, withdraw from market or do nothing. |
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Existing products, new market.
Market development. |
Medium risk
This strategy is based around market development. An example is seeking new geographical locations or promoting new users of products. |
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New products, existing market.
Product development. |
Medium risk
This strategy will involve substantial modification or additions to a range. Useful in competitive markets where firms need top maintain differentiation. |
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New products, new markets
Diversification |
High risk
This is launching new products into new markets, it is high risk as it requires both product and market development. |
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Assessing effectivness of marketing strategies.
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It is only really possible to recognise whether they have been succesful after the strategy has been implemented.
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Porters generic strategy
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Can be used to assess:
Whether the strategy provides thw business with significant advantage. Whether it can be maintained over a long period of time. Whether it appeals to sufficient numbers of people. |
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Ansoffs Matrix
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This strategy can assess the degree of risk involved in a particular strategy.
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Methods of expanding into international markets
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Exporting
Setting up base overseas Joint ventures Franchising Licensing |
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Benefits from international markets
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Acheives growth
Boostes profitability Spreads the risk Helps international competitiveness Improves understanding of markets |
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Risks to a business from international markets
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Cultural, social and language factors
Legislation Business practice Economic factors Operational factors Political factors |
