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;
29 Cards in this Set
- Front
- Back
|
define STRATEGIC FORMULATION
|
the set of prosesses involved in the creation of strategy of the company. must match company, resources, costs, risks etc |
|
|
porter 1980
|
generic strategy - ways of gaining competitive advantage four strategies |
|
|
porter's four strategies? |
cost leadership strategy focus strategy (low cost) differentiation strategy focus strategy (differentiation) |
|
|
cost leadership strategies
|
increase profits while reducing costs minimise cost confident we can maintain cost leadership lidl / aldi |
|
|
differentation stratgies
|
make product different from and more attractie to competitors - features need good r&d effective sales and marketing, ie innocent need to avoid customers creaging focus differentation |
|
|
focus strategies |
niche markets - understand dynamics
build brand loyalty- toys r us after deciding on a focus talk about cost leadership or differentiation add something extra as a result of keeping in the niche |
|
|
porter: stuck in the middle? |
only choose on strat - more than one leads to loss of focus future trajectory could not be clear with more than one focus Baden Fuller says in fact companies that are successful can create hybrid strategies |
|
|
critique of porters gen strat |
questioned lack of specificity, lack flexibility, look @ hybrid |
|
|
ansoff growth share matrix 1960 |
choice of four determine growth stratgies 1. market penetration 2. product development 3. market deelopment 4. diversification |
|
|
ansoff: market penetration |
existing products into an existing market place, maintain / increase market share and secure dominance of growth market. already have a good knowledge - low market research |
|
|
ansoff: product development |
growth - aim to intrdouce more products into an existing market. modified, new customer need to lead market place new product --> existing market |
|
|
ansoff market development |
sell existing products into a new market place - new geographical market, product dimensions - more risky that market penetration due to new territory and new costs |
|
|
ansoff: diversification
|
new market, new prduct
inherently riskier clear idea of what it expects to gain risk and reward balance |
|
|
boston growth matrix |
ability for a product to gain cash for organisation stars, q marks, cash cows, dogs |
|
|
boston: STARS |
high market growth, high relative market share
invest further - these are in the growth phase could become cash cows |
|
|
boston: q marks |
high market growth, low relative market share small market share - must invest in marketing. dont normally generate profit at first - may eventually turn into star products |
|
|
boston: cash cow |
low market growth, high market share generate good profits to invest in ?'s and star products |
|
|
boston: dogs
|
all products could become dogs, some former cash cows can enjoy a stable demand, can they become question marks and stars.
|
|
|
criticism of boston matrix
|
historical context ignores customer changes some products may damage a companys reputation even if profitabl |
|
|
bowmans strategy clock |
explains cost and percieved value combination and likely successes for each product. varying levels of price and value. |
|
|
bowman: points on clock (8) |
1. no frills 2. low price 3. hybird 4. differentiation 5. focused differentiation 6. increased price 7. increased price and low value 8. low value |
|
|
bowman: NO FRILLS
|
low price low value bargain basement bin sell by volume |
|
|
bowman: LOW PRICE
|
low cost leaders- drive prices down to minimum aldi and lidl sustain approach and become powerful players price wars |
|
|
bowman: hybirds |
products low cost/ higher percieved value |
|
|
bowman: differentation |
compare with porter. increase pices, sustain themselves, branding important ie NIKE |
|
|
bowman: focused differentiation
|
high price, high PERCIEVED value enough to charge premiums, gucci and armanai |
|
|
bowman: increased price |
but no increase in value. higher profitability if successful. plumment in share if not accepted. not a long time propositon. |
|
|
bowman: increased price and low value |
as a monopolist, no need to offer added value. |
|
|
bowman: low value |
can only sell on price. |
