Flashcards in MKT4580 Chapter 4 Deck (16):
SWOT Analysis is a....
Framework for organizing and utilizing the pieces of data and information gained from the situation analysis. It is simplistic, it helps lower cost, enhances the strategic plan, gives the ability to integrate and synthesis diverse info., and fosters collaboration and helps open exchange between different functional areas. A good strategy is about matching the firm’s strengths to the available opportunities.
Three Basic strategies for competitive advantages
Four major directions for strategic focus (using SWOT)
Internal strength/external opportunities
Internal strengths/external Threats
Internal Weaknesses/External opportunities
Internal Weaknesses/External Threats
Red Ocean vs. Blue Ocean
-A red ocean strategy is like Michael Porters strategy.
-Red ocean strategy used in industries with known market space & too many competitors
- Red ocean strategy you can only use differentiation OR low cost.
-The goal is to beat the competition to increase your market shares.
-A Blue Ocean strategy it is like Michael Porters strategy but is more advanced.
-Blue Ocean strategy is used in industries with new market space and their competition is Irrelevant.
-Blue ocean strategy you can have both differentiation AND be a low cost provider.
-Blue Ocean Strategy defines good strategy as having Focus, Divergence, and Compelling Tagline.
-Indentifies factors that the industry currently competes on and what customers receive from existing product offerings (captured by the horizontal axis – suppliers & buyers)
-Identifies the offering level received by buyers for each factor (captured by the vertical axis – Substitute, new entrants, established rivals).
-Identifies a company’s relative performance across its industry’s factors of competition (captured by the value curve).
The value curve of the Strategy Canvas captures...
a company's relative performance across its industry's factors of competition
The Vertical axis of the strategy canvas captures...
The offering level received by buyers for each factor
The vertical axis of the strategy canvas consist of what attributes
Substitute, new entrants, established rivals
The horizontal axis of the strategy canvas captures
the factors that the industry currently competes on and what customers receive from existing product offerings
The horizontal axis of the strategy canvas consist of what attributes
Suppliers and Buyers
What are the Four actions framework