Benefits, Perceptual Map, Competitor, Industry Analysis, Generic Strategies, Entry Wedge, Competitive Advantage, Supply Chain, Strategic and Tactical Actions
Cost strategy
A generic strategy aimed at mass markets, offering a combination of cost benefits
Perceptual map
A graphic display positioning products, services, brands, or companies based on strategic dimensions
Decline stage
A life cycle stage with falling sales and profits
Industry analysis (IA)
A research process providing key information about the industry's current situation and trends
Supply shortages
A type of entry wedge caused by a lack of supply in the market
Net profit
The amount of money left after deducting operating expenses from the business
Supply chain
The distribution line of a product from materials to customers
Introduction stage
The life cycle stage where the product or service is being invented and initially developed
Competitive advantage
The particular way a firm implements customer benefits to stay ahead of other firms
Generic strategies
Three widely applicable classic strategies for businesses: differentiation, cost, and focus
Competitor
All the firms selling the same product or service
Growth stage
An industry life cycle stage with a dramatic increase in customer purchases
Entry wedge
An opportunity for a new business to gain a foothold in a market
Retrenchment
An organizational life cycle stage where established firms find new approaches to improve the business
Tactical actions
Competitive responses with low resource requirements
Gross profit
Funds left over after deducting the cost of goods sold
Differentiation strategy
A generic strategy aimed at clarifying how one product is unlike another in a mass market
Focus strategy
A generic strategy targeting a portion of the market, called a segment or niche
Boom
A life cycle growth stage with a rapid increase in sales in a short time
Shake-out
A life cycle stage following a boom, characterized by a rapid decrease in the number of firms in an industry
Government rules
A type of entry wedge involving favorable regulations or policies
Second sourcing
A type of entry wedge involving finding alternative suppliers
Favored purchasing
A type of entry wedge where a new business receives favorable purchasing terms
Market relinquishment
A type of entry wedge where competitors exit the market
Customer contracting
A type of entry wedge where customers are looking for new suppliers
Unutilized resources
A type of entry wedge where resources are available but not fully utilized
Industry dynamics
Changes in competitors, sales, and profits in an industry over time
Benefits
Characteristics of a product or service that the target customer would consider worthwhile
Supra-strategies
Classic benefit combinations designed for industries with many small businesses and a few larger firms
Strategic actions
Competitive responses requiring a major commitment of resources
Profit before taxes
The amount of profit earned by a business before calculating income tax owed
Maturity stage
The third life cycle stage, marked by a stabilization of demand and firms focusing on cost strategies
