3.8 choosing strategic direction

Question 1

influences on strategic positioning

Answer 1

competitors - competitive advantage, cost leaders want to assess competition
core competencies - USP, able to differentiate
external environment - opportunities and threats

Question 2

what is competitive advantage

Answer 2

offering consumers greater value
sustainable, can’t be beaten by competitors

Question 3

low cost

Answer 3

lowest cost operator
economies of scale by growing the business
suitable for low branding products

Question 4

ways to achieve differentiation

Answer 4

quality
branding
wide distribution
sustained promotion
PED inelastic as it’s unique

Question 5

evaluating market development

Answer 5

a logical strategy when markets are saturated
more risky than product development
existing products may not suite new markets

Question 6

evaluating product development

Answer 6

a strategy that often plays into an established business
market research to customers needs
a great way of exploiting customer base
innovation

Question 7

scientific decision making

Answer 7

set objectives
gather data
analyse data
select
implement
review