SWOT Flashcards
Which are the factors that should be reviewed in terms of OT in order to determine the attractiveness of a market?
size, growth and competitive structure of the market.
which are the factors that should be reviewed in terms of a firm’s strengths and weaknesses in order to determine the attractiveness of a market?
cost and differentiation factors.
what has a greater impact on corporate value, competitive advantage or market attractiveness?
competitive advantage. the variation of profitability within an industry exceeds variation between industries.
Which competitive advantage is more vulnerable? Cost advantage or differentiation advantage?
Both are sustainable over the long term.
What are the two principal strategic market focuses?
Increase sales volume and increase productivity.
What are the three qualities that characterise an effective strategic profile?
Focus, divergence and compelling tagline.
What is the competitive structure of the market?
Competitor hostility, supplier power, buyer power, threat of substitutes, threat of new entry, the cyclicality of the market and market risks.
What should the strategic market objective be?
Strategic objectives have been conceptualised and organized in capital rationalising models, based on the premise that capital is a scarce resource.
On what depends the assignment of the strategic objectives?
The assignment depends on whether the investments in the market can generate positive NPV for the firm.
Which marketing tasks are involved with a volume focus?
Convert non users, enter new market segments, increase the usage rate and win competitor’s customers.
Which marketing tasks are involved with a productivity focus?
Reduce costs, increase prices and enhance product mix.
