Business Strategy
This Porter strategy focuses on distinguishing a product from competitors (e.g., Rolex, Apple) to charge a premium.
What is Differentiation?
When a company operates multiple businesses that are linked by technology, brand, or distribution to create synergy.
What is Related Diversification?
In the BCG Matrix, a business with High Market Share and High Market Growth is called this.
What is a Star?
This international strategy treats the world as a single marketplace and standardizes products to lower costs.
What is a Global Strategy?
This concept exists when the value of two businesses working together is greater than the sum of them separately (1+1=3).
What is Synergy?
In the Miles & Snow typology, this type of company protects its current market, lowers costs, and takes very few risks (e.g., BIC).
What is a Defender?
If Campbell's Soup buys the company that makes its metal cans, they are engaging in this type of vertical integration.
What is Backward Vertical Integration?
This unit has High Market Share but Low Market Growth; it generates profits used to fund other parts of the business.
What is a Cash Cow?
A strategy that customizes products and marketing for each specific country or region (High local responsiveness).
What is a Multi-Domestic Strategy?
This Porter strategy involves applying cost leadership or differentiation to a specific niche or regional market.
What is a Focus Strategy?
This strategy aims to reduce manufacturing costs below those of competitors to sell at a lower price.
What is Overall Cost Leadership?
If a shoe manufacturer opens its own retail stores to sell directly to customers (skipping the middleman), it is this type of integration.
What is Forward Vertical Integration?
This is the recommended strategy for a "Dog" (Low Share, Low Growth).
What is Divest (or Retrenchment)?
This complex strategy attempts to combine global efficiency (low cost) with local responsiveness (customization).
What is a Transnational Strategy?
Selling off a business unit that is no longer profitable or a strategic fit is called this.
What is Divestiture?
A company that aggressively seeks new opportunities, innovates, and takes risks (e.g., Amazon) is known as this.
What is a Prospector?
This type of diversification is driven purely by financial returns, where the businesses have no logical connection to each other.
What is Unrelated Diversification?
A "Question Mark" is considered risky because it has low share but requires high investment due to this factor.
What is High Market Growth?
This simple strategy involves just using your home-country's core competencies in foreign markets without much change.
What is Home Replication?
The Miles & Snow strategy characterized by a lack of consistent strategy and drifting with environmental events.
What is a Reactor?
In this stage of the Product Life Cycle, demand levels off and the company focuses on "cost control" and efficiency.
What is the Maturity Stage?
This term describes when two organizations of roughly equal size combine their operations.
What is a Merger?
The GE Business Screen is considered more advanced than the BCG Matrix because it uses these two complex dimensions instead of just growth/share.
What are Industry Attractiveness and Competitive Position?
McDonald's changing its menu in India to exclude beef is an example of high "what"?
What is Local Responsiveness?
This famous business theorist developed the "Five Forces" model and the "Generic Strategies" (Cost/Differentiation/Focus).
Who is Michael Porter?