Term
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Definition
| Actions firms take to gain competitive advantage in a single market or industry |
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Term
| Corporate-Level Strategies |
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Definition
| Actions firms take to gain competitive advantage by operating in multiple markets or industries simultaneously |
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Term
| Cost Leadership Business Strategy |
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Definition
| Focuses on gaining advantage by reducing cost below all competitors |
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Term
| Sources of Cost Advantages |
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Definition
Economies of Scale
Dieconomies of Scale
Experience Differences and Learning Curve Economies
Deferential Low Cost Access to Productive Imputs
Technological Advantages Independent of Scale
Policy Choices |
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Term
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Definition
Specialized machines
Cost of Plant and Equipment
Employee Specialization
Overhead Costs |
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Term
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Definition
Physical Limit to Efficient size
Managerial Diseconomies
Worker De-Motivation
Distance to Market and Suppliers |
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Term
| Experience Differences and Learning curves Economies |
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Definition
| The more units produced the more efficient a company becomes at producing a unit because of the learning curve. |
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Term
| Differential Low-Cost Access to Productive Inputs |
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Definition
| Lower cost productive inputs change depending on where the firm is located and where it is acquiring its productive inouts |
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Term
| Technological Advantages Independent of Scale |
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Definition
| Firms with the latest technological Hardware and Software can do things more efficiently |
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