Chapter 15
This decision about capacity is based on future conditions
What is capacity expansion?
This type of differentiation is based on appearance
What is design or brand?
This investment must be made before you can produce a new product
What is capacity?
This is an example of this market signal tactic "Price competition is very harsh, the industry is doing a lousy job of passing along increased costs to the consumer"
What are public discussions of the industry by competitors?
This is a common problem related to capacity
What is overcapacity?
A firm that successfully combines two or more of Porter's strategies in a way that is complementary rather than contradictory has achieved this
Integration of Generic Strategies (e.g. Integrated Low-cost Leadership and Differentiation)
This policy affects the terms customers must meet when paying for their sensors
What is Accounts Receivable policy?
One of the five forces, this can more naturally be higher in B2B industries due to the lower number of customers businesses can feasibly pursue
What is the threat of buyers?
The firm must also consider the behavior of this element of its environment when planning capacity expansion
What are competitors?
This type of firm fails to develop any of the three strategies
What is a firm that is stuck in the middle?
This calculation determines how much revenue is available to cover your fixed expenses
What is contribution margin?
This structural characteristic addresses unknowns about the product itself
What is technological uncertainty?
These are two reasons for overbuilding capacity
What are cyclical demand and undifferentiated products?
This describes the competitive behavior among existing firms in the same industry
What is rivalry among existing competitors?
When discontinuing a sensor, you must keep this amount of capacity to sell the remaining inventory at full price.
What is one unit?
These factors deter firms from moving from one strategic position to another
What are mobility barriers?
This reason for capacity expansion occurs when a firm seeks to control a major portion of the market to discourage competitors from doing so
What is preemptive capacity expansion?
This is the evaluation of past actions to predict a competitor's future moves.
What is historical analysis?
This is one way to increase your leverage
What is increase debt, buy back stock or issue dividends?
Avoiding the stigma of "giving up" is an example of this type of exit barrier
What is a managerial or emotional barrier?