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23 Cards in this Set
- Front
- Back
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External Environment |
Hypercompetition |
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Hypercompetition |
is affected by facotrs such as Technology and Technological changes and the Global Economy |
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Technology and Technological Changes |
rapid diffusion -> short PLC; dramatic changes in Info Tech; increasing importance of knowledge |
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Global Economy |
*people, goods, services &ideas move freely acrossgeographic borders* significant opportunitiesemerge in multiple globalmarkets* markets/industries becomemore internationalized |
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GATT |
General Agreements on Tariffs and Trade (reducing barriers) |
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Technology |
causes rapid dissemination of info, rapid technology changes |
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rapid tech changes leads to |
product obsolescence |
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product obsolescence leads to |
short Product Life Cycle |
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cycles of a product |
introduction, growth, maturity, and decline |
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Short PLC means |
less time to sell your product bec. of many volumes to produce |
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Break-even point |
Total fixed cost / (unit selling price - unit variable cost) |
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Hypercompetition also leads to |
High Bargaining power of buyers |
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high BP since |
a lot of enterprise are selling the same thing so you can choose easily |
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Indirect competitors |
substitutes (boats to airplane) and it sets the ceiling price |
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The 5 forces that shape the industry or competition |
threats of new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitutes all lead to high rivalry among existing competition |
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Purchasing power |
amount of goods/services that one unit of money can buy; all else being equal, inflation decreases the amount of goods and services we are able to purchase |
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Michael Porter |
Creator of the Generic Strategies |
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Cost Leadership |
if you incur the lowest cost and price the lowest then an entity is the cost leadership |
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Differentiation |
if a company gives high value, high benefit, and low price |
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Focus/Niche |
focus on a segment (makes you lower your volume) and allows you to meet your BEV |
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Management science |
makes application of scientific approach; uses mathematically oriented techniques to solve management problems |
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Focus of Management Science in the Scientific Approach |
Model Construction and Solution |
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Example of Model Contruction |
minimize Z (cost) = 20x1 + 15x2 Where 20 is the price and x are the products |
