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Flashcards in Set Paragraph's Deck (7):


Niche market target
Ansoff differentiation less risky global omnichannels
Argos click and collect attract niche goods distributed


Cost Minimisation
Operations Management

Distribution centres, no high street stores
Take advantage of lean production, Kaizen/J-I-T
Reduce cost, Generic cost leadership broad across all
Amazon/John Lewis established Kaizen/tech for J-I-T


Economies of Scale
Barriers to Entry
Pure Play

Distribution centres/large companies Purchase
Lower unit costs generic cost leadership
Difficult to compete significant invest needed to compete
Amazon/Alibaba huge purchasing power unrivalled.


Do Nothing

Some firms may lose USP of low prices
Whole distribution network increase costs DofS
Primark successful only high street, generic strategy
Their target market will come to store for cheap stuff



Some firms spent on new tech, differentiation
Disruptive technology, Ansoff Diversification
Uber disruption destroying established taxi firms
Significant proportion of the market from innovation


Market Growth

Expansion of potential market i.e more customers
Makes everyones market bigger
New firms don't take much share from established firms
Halfords successful even from Wiggle/Chain Reactions



Due to innovation needs culture accepting of change
Schein's shallow underlying culture easier
Zappos correct recruitment accepting of change
Highly successful taken over by Amazon