providing greater value for customers than competitors can
What is competitive advantage?
100
a reluctance to change strategies or competitive practices that have been successful in the past
What is competitive inertia?
100
a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio
What is diversification?
100
Addresses the question, "How should we compete in the industry?"
What is industry-level strategy?
100
the rivalry between two companies that offer similar products and services
What is direct competition?
200
a resource that is not controlled or possessed by many competing firms
What is a rare resource?
200
the internal decision making routines, problem-solving processes and organizational cultures that determine how efficiently inputs can be turned into outputs
What are core capabilities?
200
creating and acquiring companies that share similar products, manufacturing, marketing, technology or cultures
What is related diversification?
200
Character of rivalry, threat of new entrants, substitute products or services, bargaining power of buyers or suppliers
What are Porter's five industry forces?
200
The extent to which a competitor has similar amounts and kinds of resources
What is resource similarity?
300
a resource that is impossible or extremely costly or difficult for other firms to duplicate
What is an imperfectly imitable resource?
300
an assessment of the strengths and weakness opportunities and threats in its environment
What is SWOT analysis?
300
a portfolio strategy that categories a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds
What is a BCG matrix?
300
a measure of the influence that customers have on a firm's prices
What is bargaining power of buyers?
300
a corporate strategy that addresses the question, "How should we compete against a particular firm?"
What is a firm-level strategy?
400
a resource that produces value or competitive advantage and has no equivalent substitutes or replacements
What is a nonsubstitutable resource?
400
the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage
What are strategic reference points?
400
a broad strategic plan used to help an organization achieve its strategic goals
What is a grand strategy?
400
companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk-taking, and being the first to bring innovative new products to market
What are prospectors?
400
the degree to which two companies have overlapping products, services, or customers in multiple markets
What is market commonality?
500
a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
What is sustainable competitive advantage?
500
a group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities
What is a strategic group?
500
a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
What is a retrenchment strategy?
500
the positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it
What is differentiation?
500
a competitive move designed to reduce a rival's market share or profits