Ch 11

Front 1

business model

Back 1

core elements of a frim and how it is organized to deliver value to customers and generate revenue

Front 2

buyer power

Back 2

ability of buyers or customers to exert pressure on lower price and higher quality

Front 3

competitve advantage

Back 3

the long-term market position and unique-ness that is not easily duplicable by rivals that enables a frm to outper-orm its rivals. It could also be called “key success actors.

Front 4

barriers to entry

Back 4

The existence o obstacles that prevent competi-tors rom attempting to enter an industry or market.

Front 5

economies of scale

Back 5

when the avg. cost per unit decreases from increased volumes

Front 6

first mover advantage

Back 6

adv. an org attains by being the first competitor to pursue a particulr source of comp. advantage

Front 7

generic strategies

Back 7

The label Michael Porter gave to two prominent position strategies—low cost and high dierentiation. He argued that most frms naturally gravitate to one or the other, and thus he called these “generic” positions.

Front 8

market structure

Back 8

The organizational eatures o a market (e.g., seller concentration, entry barriers, degree o product dierentiation) that condition or inuence the conduct and strategies o competitors.

Front 9

market niche strategy

Back 9

A strategy in which a competitive seeks advantage by ocusing on a single or small number o product lines or population segments.

Front 10

mission

Back 10

foundation of a strategic direction. reason for existence and basis for strategy. a guide

Front 11

monopolistic comp

Back 11

A market structure that is characterized by a large number o small frms that have similar, but not identical products.

Front 12

monopoly

Back 12

only 1 provider of a supply or service

Front 13

oligopoly perfect comp

Back 13

A market in which there are a small number o frms, and the competitors believe that their rivals have sufcient mar-ket power to inuence their long-term survival

Front 14

porters 5 forces framework

Back 14

A ramework developed by Michael Porter o Harvard University to analyze the fve main orces that aect competition in a market.

Front 15

portfolio analysis

Back 15

A method that compares the value o the strate-gic business units (SBUs) o frms. Components o companies are categorized by their competitive market position and the environ-mental attractivenes

Front 16

product life cycle

Back 16

A phase or lie cycle that relates to its level o costs and sales, which have strategic implications. Lie cycles occur because o the inherent limited lie o any products, as a result o technological advances and adapting consumer preerences.

Front 17

rivalry

Back 17

Competition levels that inuence the strategies o frms and determine the overall proftability o the industry.

Front 18

strategic group

Back 18

A concept to identiy organizations within an indus-try that have similar business models or strategic orientations so that they directly compete with each other

Front 19

strategic mgmt

Back 19

The creation, implementation, and overall direction or a frm. As such, it requires both internal and external management unctions to acilitate the development, implementa-tion, and monitoring o strategy within an organization.

Front 20

supplier power

Back 20

The ability o suppliers to inuence price and quality.