Chapter 6 Flashcards
(17 cards)
Strategic Planning
Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company
3 Levels of Strategy
Corporate, Business, Functional
3 Corporeal Level Strategy
Growth, Stability, Defensive
SWOT Analysis
Good first insight int o whether or not a company has competitive analysis
VRIO
Framework for analyzing a resource or capabilities to determine its competitive strategic potential
What does VRIO stand for?
Valuable, Rare, Costly to imitate, Organized to exploit value, rarity, imitability
BCG Matrix
Stars, Question marks, Cash cows, Dogs
Stars
High growth and high market share - definite keepers
Question marks
Risky new ventures, some become stars some become dogs (low market share with high market growth rate)
Cash cows
Have slow growth but high market share - income finances stars and questions markets
Dogs
Have low growth and low market share, should be gotten rid of
Porter’s 4 Business Level Strategies
Cost Leadership, Differentiation, Cost Focus, Focus Differentiated
Cost Leadership Strategy
Keeping costs and prices low for a wide market
Differentiation Strategy
Offering unique and superior value for a wide market
Cost focus Strategy
Keeping costs and prices low for a narrow market
Focus Differentiated Strategy
Offering unique and superior value for a narrow market
Porter’s 5 Sources
- Threats of new entrants 2. Bargaining power of buyers 3. Bargaining power of suppliers 4. Threat of substitute products/services 5. Rivalry among existing Firms
