Busines Strategies (enviroments) Flashcards
(21 cards)
Generic strategies
Low cost, niche/focus, differentiation
Low cost (generic)
Aim to having lowest production costs in the industry
Niche/focus (generic)
Concentrating on specific segment of market
Differentiation (generic/growth)
Focusing on products/services standing out compared to competitors
Integration strategies
Backward, forward, vertical, horizontal
Backward (integration)
Retailer buys supplier
Vertical (integration)
Supplier buys retailer
Forward (integration)
Company controls it’s distribution
Horizontal (integration)
Company merges with competitors
Corporate combination
Joint venture, Merger, take over
Joint venture (corporate combo)
2 businesses team up for a project/ venture/ collaboration
Merger (corporate combo)
2 companies join to form 1
Take over (corporate combo)
A company acquired another
Defensive strategies
Retrenchment, liquidation, divestiture
Retrenchment (defensive)
Reducing workforce due to capital/income issues
Liquidation (defensive)
Selling assets to pay off debts
Divestiture (defensive)
Selling part of business
Growth strategies
Market penetration, market development, product development, differentiation
Market penetration (growth)
Focus on increasing sales in existing market
Market development (growth)
Focus on increasing sales on existing product in new market
Product development (growth)
Adapting or creating new products to sell in existing markets
