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44 Cards in this Set
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Provides an initial approximation as to how the business is doing |
Financial performance |
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It provides an indicator of the success of past strategies and thus can often help in evaluating whether strategic chances are needed |
Sales and profitability |
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Sensitive measure of how customers regard a product or service |
Sales and market share |
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Ultimate measure of a firm's ability to prosper and survive |
Profitability |
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Can be considered as having two casual factors |
Return on assets |
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Depends on the selling price and cost structure |
Profit margin |
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Depends on inventory control and asset utilization |
Asset turnover |
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Calculation of the value of the company made by looking at the return it gives to its shareholders |
Shareholder value analysis |
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One of the difficulties in strategic market management is developing performance indicators that convincingly represent long-term prospects |
Beyond profitability |
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A product or service and its components should be critically and objectively compared both with the competition and with customer expectations and needs |
Product and service quality |
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An often overlooked asset of a brand or firm is what competitors think of it |
Brand/Firm Associations |
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A careful cost analysis of a product or service and its components, which can be critical when a strategy is dependent on achieving a cost advantage or cost parity, involves tearing down competitor's products and analyzing their systems in details |
Relative cost |
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It can provide an opening for competitors to enter an otherwise secure market |
Average costing |
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Is a new idea, device or process |
Innovation |
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It can be viewed as the application of better solutions that meet new requirements, inarticulated needs or existing market needs |
Innovation |
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One of the key to a firm's long term prospects are the people who must implement strategies |
Manager/employee capability and performance |
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Helps to identify the assets and competencies |
Strength and weaknesses |
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Helps to determine which are most relevant for firm's business and to prioritize them |
Opportunities and threats |
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Its goal is to develop a strategy that exploits business strengths and competitor weaknesses and neutralizes business weaknesses and competitor strengths |
From analysis to stragegy |
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Cluster around a limited number of value propositions for a product market, supported by assets and competencies and functional strategies and programs. |
Business strategies |
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If a product or service attribute is benefit is central to the purchase and use of an offering, one strategic option is to dominate or even own that attribute |
Superior attribute or benefit |
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An offering can appeal to a person's aesthetics, providing substantial self-expressive as well as functional benefits |
Appealing design |
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A compelling value propositions can be based on moving from selling products to selling systems solutions, based on packaging products that work together to create a total system |
Systems solutions |
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It often involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support, plus it manages company's interactions with current and future customers |
Superior customer relationship |
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Being a _ _ means that the firm concentrates on one part of the market or product line and can emerge in virtually any arena |
Niche specialist |
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By its nature, it tends to avoid strategy dilution or distraction; it is more likely to pursue a strategic commitment strategy leading to a sustainable advantage |
Niche specialist |
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It refers to a business practice that involves participating in initiatives that benefit society |
Corporate social programs |
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It is a form of corporate self-regulation integrated into a business model |
Corporate social program |
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It aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others |
Corporate social responsibility |
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To pursue a quality strategic option successfully, a business must distinguish itself with respect to delivering quality to customers |
Total quality management |
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It needs a quality focused management system that is comprehensive, integrative, and supported throughout the organization |
Total quality management |
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The product or service may possess adequate or even superior dimensions of quality, but still fall victim to negative customer or public perceptions |
Perceived quality and financial performance |
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It is the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others |
Value |
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May also be expressed as a straightforward relationship between perceived benefits and perceived costs |
Value |
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Formula of value |
value=benefits/cost |
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The amount of money that something is worth |
Price |
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Superiority achieved through factors such as access to cheaper inputs, efficient processes, favorable location, skilled workforce, superior technology, and/or waste reduction or elimination |
Cost advantage |
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Is one for which the non-essential features have been removed to keep the price low |
No-frills product/service |
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A process or series of acts involved in a particular form of work or an instance o method of efficient, productive activity |
Operation |
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The scale effect reflects the natural efficiencies associated with sizd |
Scale economies |
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Empirically verified in hundreds of studies, suggests that as a firm accumulates experience in building a product, its cost in real dollars will decline at a predictable rate |
The experience curve |
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Creating a credible value story - the perception that there is real value in the offering-requires substance |
Perceived value |
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Is a perceived price point that will deliver value |
Core |
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A successful low-cost strategy is usually multifaceted and supported by a cost-oriented culture |
Low-cost culture |
