question
Blue ocean strategy
answer
Business-level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs
question
Business-level strategy
answer
Goal-directed actions managers take in their wuest for competitive advantage when competing in a single product market
question
Cost-leadership strategy
answer
Generic business strategy that seeks to create the same or similar value for custoemrs at a lower cost
question
Differentiation strategy
answer
generic business strategy that seeks to create higher value for customers than the value that competitors create
question
Diseconomies of scale
answer
Increases in cost per unit when output increases
question
Economies of scale
answer
Decreases in cost per unit as output increases
question
Economies of scope
answer
Savings that come from producing two (or more) outputs at less cost than producing each output individually, despite using the same resources and technology
question
Focused-cost leadership strategy
answer
Same as the cost-leadership strategy except with a narrow focus on a niche market
question
Focused differentiation strategy
answer
Same as the differentiation strategy except with a narrow focus on a niche market
question
Minimum efficient scale (MES)
answer
Output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest-cost position that is acheivable through economies of scale
question
Scope of competiton
answer
The size--narrow or broad--of the market in which a firm chooses to compete
question
Strategic trade-offs
answer
Choices between a cost or value position. Such choices are necessary because higher value creation tends to generate higher cost
question
Strategy canvas
answer
Graphical depiction of a company's relative performance vis-a-vis its competitors across the industry's key success factors
question
Value canvas
answer
Horizontal connection of the points of each value on the strategy canvas that helps strategists diagnose and determine courses of action
question
Value innovation
answer
Simultaneous pursuit of differentiation and low cost in a way that creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean strategy
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
