Small Business Strategies - Chapter 7
Perceptual Map
A graphic display which positions products, services, brands, or companies according to their scores of important strategic dimensions
Decline
A life cycle stage in which sales and profits of the firm begin a falling trend
Boom
A type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time
Shake-Out
A type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry
Growth
An industry life cycle stage in which customer purchases increase at a dramatic rate
Retrenchment
An organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival
Industry Cycle
Introductory, Growth, Boom, Shake-Out, Maturity, Decline
Market
business term for the population of customers for your product or service
Scope
geographic range covered by the market
Gross Profit
Funds left over after deducting the cost of goods sold
Imitative Strategy vs. Innovative Strategy
Imitative - An overall strategic approach in which the entrepreneur does more or less what others are already doing Innovative - An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
Mass Market vs. Niche Market
Mass - large portions of the population Niche - narrowly defined segment of the population that is likely to share interests or concerns
Net Profit
The amount of money left after operating expenses are deducted from the business
Introductory
The life cycle stage in which the product or service is being invented and initially developed
Magic Number
The post-tax income the entrepreneur personally seeks from the business
Maturity
The third life cycle stage, marked by a stabilization of demand, with firms in the industry moving to stabilize or improve profits through cost strategies
Scale
size of the market
Strategy Process
the ideas and actions that explain how a firm will make its profit; Process: Prestrategy, Customers & Benefits, Industry Dynamics and Analysis, Strategy Selection & Implement, Post Start-Up Strategy