Positioning & Differentiation
To define how a company distinguishes itself from competitors to achieve a sustainable advantage.
What is the goal of strategic positioning in business?
An element essential for a firm to compete effectively in its industry.
What is a Key Success Factor (KSF)?
A productive input or competitive asset controlled by the organization.
What is a resource in the RBV framework?
A strategy that fundamentally changes the market by creating a new value proposition.
What is a disruptive strategy?
Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, industry rivalry.
What is the Porter's model?
Low cost and differentiation.
What are Porter's generic strategies?
One is a strategic element; the other is a metric to measure performance.
What is the difference between a KSF and a KPI?
Valuable, Rare, Inimitable, Organized.
What are the four criteria in the VRIO framework?
Create new market space without competition
What is the main idea behind Blue Ocean Strategy?
Low switching costs, concentrated buyers, undifferentiated products.
What increases the bargaining power of buyers?
Product features, service, price, distribution, customer service, etc.
What is basis for differentiation?
What is industry-specific and environment-specific?
One is routines or processes that utilize other effectively
What distinguishes a capability from a resource?
Eliminate, Reduce, Raise, Create.
What are the elements of the Four Actions Framework?
They cap the price companies can charge and limit profits.
What is the threat of substitutes?
Higher costs may not be offset by a higher price or customer perception
What is a risk when using differentiation strategy?
To ensure the firm stays aligned with its strategic goals and market changes.
What is the purpose of evaluating KSFs continuously?
Brand reputation, patents, culture, human capital.
What are examples of an intangible resource?
It ensures survival, competitiveness, and differentiation in a rapidly evolving world.
What is innovation about?
It leads to price wars, increased costs, and reduced profitability.
What is industry rivalry?
It provides a coherent model for making consistent strategic decisions across departments.
What does it mean for positioning to be a “support for decision-making”?
Monitor and reevaluate them continuously.
What is the last step in identifying KSFs?
Skills and processes that allow a firm to adapt and capitalize on opportunities.
What are dynamic capabilities?
New, Valuable, and Applicable.
What are the three conditions for innovation to be valuable?
Economies of scale, brand loyalty, government regulation, capital requirements.
What are barriers that can protect against the threat of new entrants?