Shared Flashcard Set

Details

MIS FINAL
Chapter 5
25
Management
Undergraduate 4
05/06/2014

Additional Management Flashcards

 


 

Cards

Term
Business Level
Definition
a strategy designed for a firm or a division of a firm that competes within a sing business
Term
Generic
Definition
an analysis of business strategy into basic types based on breadth of target market (industry wide vs. narrow market segment) and type of competitive adv (low cost vs. uniqueness)
Term
Overall Cost Leadership
Definition
a firms generic strategy based on appeal to the industry wide market using a competitive adv based on low cost
Term
Experience Curve
Definition
the decline in unit costs of production as cumulative output increases
• Business “learns” to lower costs as it gains experience with production processes
Term
Competitive Parity
Definition
a firm’s achievement of similarity, or being “on par”, with respect to low cost, differentiation, or other strategic product characteristic
• On the basis of differentiation permits a cost leader to translate cost adv directly into higher profits than competitors
Term
Pitfalls of Overall Cost Leadership-
Definition
Too much focus on 1 or a few value-chain activities, all rivals share a common input or raw material, the strategy is imitated too easily, a lack of parity of differentiation, erosion of cost adv when the pricing info available to customers increases
Term
Differentiation
Definition
consists of creating differences in the firm’s product or service offering by creating something that is perceived industry wide as unique and valued by customers
• Prestige or brand image (BMW), Tech (Guitars), Innovation (iPods), Features, Customer service, Dealer network
Term
Pitfalls of Differentiation
Definition
Uniqueness that is not valuable, too much differentiation, too high price premium, differentiation that is easily imitated, dilution of brand identification through product-line extension, perception of differentiation may vary btwn buys and seller
Term
Combination strategies
Definition
firms’ integrations of various strategies to provide multiple types of value to customers
Term
Mass Customization
Definition
a firm’s ability to manufacture unique products in small quantities at low cost
Term
Profit Pool
Definition
the total profits in a industry at all points along the industry’s value chain (Depths vary within an indiv segment)
Term
Pitfalls of Integrated Overall Cost Leadership and Differentiation
Definition
firms that fail to attain both strategies may end up with neither and become “stuck in the middle”, underestimating the challenges and expenses associated with coordinated value-creating activities in the extended value chain, miscalculating sources of revenue and profit pools in the firm’s industry’s
Term
Digital Tech
Definition
info that is in numerical form, which facilitates its storage, transmission, analysis and manipulation.
Term
Disintermediation
Definition
the process of bypassing buyer channel intermediaries such as wholesales, distributors, and retailers.
Term
Focus
Definition
strategy targets a narrow market segment with customized products and/or services
Term
Industry Life cycle
Definition
the stages of introduction, growth, maturity, and decline that typically occur over the life of an industry
Term
Introduction Stage
Definition
1st stage of the industry life cycle, characterized by (1) new products that are NOT known to customer (2) poorly defined market segments (3) unspecified product features (4) low sales growth (5) rapid tech change (6) operating losses (7) need for financial support
Term
Growth Stage
Definition
2nd stage, (1) strong increases in sales (2) growing competition (3) developing brand recognition (4) need for financing complementary value-chain activities: marketing, sales, customer service, R&D
Term
Maturity Stage
Definition
3rd stage, (1) slowing demand growth (2) saturated markets (3) direct competition (4) price competition (5) strategic emphasis on efficient operation
Term
Reverse Positioning
Definition
a break in industry tendency to continuously augment products characteristic of the product life cycle, by offering products with fewer product attributes and lower prices
Term
Breakaway positioning
Definition
associates the product with a radically different category. Incrementally improve products along specific dimensions
Term
Decline Stage
Definition
4th stage, (1) falling sales and profits (2) increasing price competition (3) industry consolidation
Term
Harvesting
Definition
a strategy of wring as much profit as possible out of a business in the short to medium term by reducing costs
Term
Consolidation
Definition
a firm’s acquiring or merging with other firms in a industry in order to enhance market power and gain valuable assets
Term
Turnaround
Definition
a strategy that reverses a firm’s decline in performance and returns it to growth and profitability
Supporting users have an ad free experience!