To create a competitive edge companies need to focus on ________________ - customers' evolving
wants and needs
Porter's three generic strategies: - 1. Overall Cost Leadership
2. Differentiation
3. Focus
Differentiation is perceived from the____________ - client/customer
Differentiated goods are the opposite of__________ - luxury goods
Luxury goods are only for__________. Differentiated goods are marketed to ____________ - a niche
group of people; everyone
Corporate Level Strategies are also known as____________ - growth/expansion strategy
Concentration Strategy - -staying within your business segment (doing more of the same thing in your
area of expertise)
-Staying within your existing business area and opening more of the same in different locations
Concentration Strategies add more ___________ - outlets/locations ex. Every neighborhood has a
Mcdonald's, every neighborhood has a Starbucks
The 3 components of concentration strategies are_____________ - 1. Market penetration
2. Market development
3. Product Development
, market penetration - making your place known in a market
Market development - going into new markets. Taking existing products and selling to new markets
Product Development - developing new products within the same market
Diversification (growth) Strategies - Branching out ot new business areas
Modes of Diversification - Merger and Acquisitions
Alliances
Internal Development
mergers - joining with two equal companies
acquisitions - acquiring another company
Internal Development - the most organic because it is all done with their organizational capabilities,
internally, in house
Diversification is often times _______________and_________________ - risky; costly
most mergers and acquisitons are____________ - unsuccessful
Why do companies still pursue mergers and acquisitons although they are unsuccessful? - Without risk
you can't make money
Synergy - the power that results from the combination of two or more forces
Related diversification - More of the same types of products. Trying to share intangible and tangible
resource benefits.
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