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Business Level Strategy
Details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.
Strategic position
Based on strategic tradeoffs between Value Creation & Cost
Which clear strategic positions can one have?
differentiation or cost leadership
Under which term does Blue Ocean strategies work?
Only if there is value innovation which helps balance the inherent trade offs between differentiation or cost leadership
What is the goal of differentiation strategy
Increase perceived value of goods in the mind of the consumers at the same cost an at a premium price
What is the goal of cost-leadership strategy
Reduce costs below that of competitors, while offering adequate value at a lower price
What are the four cost drivers for the cost-leadership strategy?
Economies of scale, Cost of Input factors, Learning curve effects and Experience curve effects
What are Porter's five forces?
•Threat of Entry
•Power of Suppliers
•Power of Buyers
•Threat of Substitutes
•Rivalry among Existing Competitors
What is a blue ocean strategy?
Strategy that successfully combines differentiation & cost-leadership activities using Value Innovation to reconcile the inherent trade-offs in those two distinct strategic positions.
What is a red ocean?
A defined market place with high competition
What is a blue ocean?
A new, undiscovered market place with no competition
What is a strategy canvas?
Depicts a company’s relative performance across it’s industry’s factors of competition.
What is a value curve?
a basic component of the strategy canvas which shows a firm's relative performance across different competitive factors in an industry
What are the four questions asked by the Four actions framework?
Eliminate, reduce, raise and create
What is value innovation?
it consists of alligning innovation with total percieved consumer benefits, price and cost