recap struggle 8 Flashcards
(18 cards)
what is a strategy
medium or long term plan for achieving a business objectives
what is strategic direction
decisions made regarding the market it competes in and the products it offers
what are the adv of market penetration
- know what cust. want
- dont need significant market research
what are the dis of market penetration
- difficult in saturated markets
- may not achieve growth objs
what are the adv of product dev
- helps with product life cycle like growth
- strengthn established brans
what are the dis of product dev
- market research needs to be effective
what are adv of market dev
logical strategy where exisitng markets are saturated or in decline
what are the dis of market dev
- exisitnf prodcuts may not suit new markets
- more risk the PD
what are the adv of diver
- spread risk if successful
- devolp new solutions through innovation and R/D
what are the dis of diver
- no direct experience
- fewer economies of scale
factors to consider when deciding on a strategy
- expected costs
- expected return
- opportunity cists
- risk
- impact of stakeholders
what is strategic positioning
how a business is perceived relative to other businesses in the business
what is a competitive advantage
sustainable advantage a business has over its competitors that enables then to succeed in the market
what is competitive market
the amount of the market targeted
what is differentiation
a business is able to differentiate its products from the competition such that customers percieve them as a superior value
- distinctly different to competition
how do you achieve differentiation
- branding
- superior quality
- wide distribution
- sustained promotion
- innovation
what are the influences on postioning
- competition
- external growth
- strengths and competencies of a business
how do you protect a competitive advantage
- legal protection
- control over resources
- particular culture
