Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
|
CCMY
|
benefits of strategic objectives
|
|
|
price competition
product introductions advertisement battles increased customer services and warranties |
rivalry among competitors (Porter's Five Forces)
|
|
|
concentrated/purchases of large volumes
standard/undifferentiated products few switching costs backward integration |
factors that drive up the bargaining power of buyers
|
|
|
few companies
more concentrated important product input differentiated...built up switching costs forward integration |
sources of supplier power
|
|
|
location advantages, patent protections
|
physical uniqueness
|
|
|
resources or capabilities built overtime
|
path dependency
|
|
|
interpersonal relationships, culture, reputation with suppliers and customers
|
social complexity
|
|
|
higher entry barriers
higher margins reduces supplier power reduces buyer power customer loyalty |
how do these strategies help protect a firm from the Five Forces?
|
|
|
little value in unique attributes
doesn't lower cost or enhance well-being over-differentiating price too high easily copied |
pitfalls of strategies
|
|
|
Please Stay For Less
|
when a low-cost strategy works best
|
|
|
DDFF
|
when a differentiation strategy works best
|
|
|
lack of cost advantages
lack of product differentiation low established brand identities low customer switching costs significant capital requirements difficult access to airports strong retaliation from existing firms |
barriers to entry in the airline industry
|
|
|
high bargaining power of labor/aircraft/airport
standard, undifferentiated inputs not many substitutes for input stuck with a supplier |
bargaining power of suppliers (airline)
|
|
|
low switching costs
large number of buyers buyers access to info price sensitive buyers airlines not unique or branded |
bargaining power of buyers (airline)
|
|
|
high exit barriers
high fixed costs low customer switching costs intense price competition lack of product differentiation rapidly growing industry excess capacity in industry |
rivalry in the airline industry
|
|
|
automated ticketing
short-haul service (25-minute turnaround) "no frills" service high frequency flights point-to-point flights no international flights fleet of only Boeing 737s |
successful operations of Southwest
|
|
|
outstanding customer service
intense communication and camaraderie flexible union contracts employee training/initiative high employee compensation high stock options |
Southwest Spirit
|
|
|
Documentary films attracted only small demographic
Documentary film did not ensure growth Limited growth in system-lease business Theater expansion is capital intensive Large debt prevented expanding to Asia saturation of markets, attack by large players, pressure for earnings growth |
Why did IMAX change their strategy?
|
