strategic CH6

often referred to as strategic planning or long-range planning, is concerned with developing a corporation’s mission, objectives, strategies, and policies.

• Strategy formulation

• Strategic window

• Business strategy

• Competitive strategy

that is, a unique market opportunity that is available only for a particular time.

• Strategy formulation

• Strategic window

• Business strategy

• Competitive strategy

focuses on improving the competitive position of a company’s or business unit’s products or services within the specific industry or market segment that the company or business unit serves.

• Strategy formulation

• Strategic window

• Business strategy

• Competitive strategy

raises the following questions: Should we compete on the basis of lower cost (and thus price), or should we differentiate our products or services on some basis other than cost, such as quality or service?

• Strategy formulation

• Strategic window

• Business strategy

• Competitive strategy

is the ability of a company or a business unit to design, produce, and market a comparable product more efficiently than its competitors.

• Cost leadership

• Differentiation

• Focus

• consolidated industry

is the ability of a company to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service.

• Cost leadership

• Differentiation

• Focus

• consolidated industry

is the ability of a company to provide unique and superior value to a particular buyer group, segment of the market line, or geographic market.

• Cost leadership

• Differentiation

• Focus

• consolidated industry

dominated by a few large companies. Although many industries start out being fragmented, battles for market share and creative attempts to overcome local or niche market boundaries often increase the market share of a few companies.

• Cost leadership

• Differentiation

• Focus

• consolidated industry

is increasingly a matter not of a single advantage maintained over time, but more a matter of sequencing advantages over time.

• Sustained competitive advantage

• cooperative strategies

• Collusion

• A strategic alliance

to gain competitive advantage within an industry by working with other firms.

• Sustained competitive advantage

• cooperative strategies

• Collusion

• A strategic alliance