Pre-Reading
Differentiation and cost leadership are both strategies that aim to create this
What is competitive advantage?
Cost leadership is a _____ level strategy
What is corporate-level?
This company uses fair trade and high quality products to distinguish from competitors
What is Level Ground Trading?
A company that is neither inexpensive or differentiated
What is being "Stuck-in-the-Middle"?
Costco is in this strategic category
What is Cost Leadership?
It is often confused with Cost Leadership, yet not the same concept
What is Price Leadership?
Costco can offer cheaper products through purchasing a large quantity to sell for cheap. This can be referred to as
What are economies of scale?
Differentiation has some similarities to, but is not the same concept as _____ pricing
What is premium pricing?
Company that failed to perfect the mobile touchscreen in time to survive in its industry
What is Blackberry?
MEC falls into this strategic category
What is Differentiation?
Authored the quotation "The essence of strategy is choosing what not to do"
Who is Michael Porter?
Cost leadership often requires the business to have this level of market share
What is high-level market share?
A potential problem to new entrants, cause by brand loyalty to existing companies
What are entry barriers?
The creator of the Stuck-in-the-Middle theory
Who is Michael E. Porter?
The category Blackberry is in
What is Stuck in the Middle?
Cost advantages are achieved by increasing production and lowering costs
What are Economies of Scale
Cost leadership requires a balance between perceived value and _____
What is price?
It was the first company to make tablets
What is Microsoft?
A company that gets Stuck-in-the-Middle due to its competitors has been...
What is "outmaneuvered by competitors"?
Tried and failed to compete, price wise, with Walmart
What is Zellers?
When a company achieves higher profits than the average competitor in the product market
What is competitive advantage?
Companies participating in Cost Leadership tend to spend a low amount of money in this business activity
What is marketing?
It can be higher, even if overall sales are lower, by charging higher prices for products
What is a profit margin?
A company that becomes Stuck-in-the-Middle due to their own actions has tried to... (hint: doing everything means doing nothing well)
What is serve the needs of different customer segments within an industry/ please everyone?
Lenovo laptops are Cost Leaders, while this computer brand uses Differentiation
What is Apple, or MacBook?