MF: ch 6

Strategic group

a group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities

Threat of substitute products or services

a measure of the case with which customers can find substitutes for an industry products or services

Threat of new entrants

a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry

Character of the rivalry

a measure of the intensity of competitive behavior between companies in an industry

BCG matrix

a portfolio strategy developed by the Boston Consulting Group that categorized a corporations businesses by growth rate and relative marker share and helps mangers decide how to invest corporate funds

Competitive inertia

a reluctance to change strategies or competitive practices that have been successful in the past

Valuable resource

a resource that allows companies to improve efficiency and effectiveness

Imperfectly imitable resource

a resource that is impossible r extremely costly or difficult for other firms to duplicate

Rare resource

a resource that is not controlled or possessed nu many competing firms

Non substitutable resource

a resource that produces value or competitive advantage and had no equivalent substitutes or replacements

Diversification

a strategy for reducing risk by buying a variety of item so the the failure of one sock or one business does no doom the entire portfolio

Stability strategy

a strategy that focuses on improving the way in which the company sells the same products or screeds to the same customers

Retrenchment strategy

a strategy that focuses on truing around very poop company performance by shrinking the scope or size of the business

Growth strategy

a strategy that focusing on increased profits, revenues, market share, or the number of places in which the company does business

Situational analysis (SWOT)

an assessment of the strengths and weaknesses in a n organizations internal environment and the opportunities and threats in its external environment

Reactors

companies that do not follow a consistent adaptive strategy but instead read to changes in the external environment after they occur

Analyzers

companies using an adaptive strategy that seek stop minimize risk and maximize profits ny following or imitating the proven successes of prospectors

Unrelated diversification

creating or acquiring companies in completely unrelated businesses

Related diversification

creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures

Competitive advantage

providing greater value for customers than competitors can

Resources

the assets, capabilities, processes, employee time, informations, and knowledge that an organization uses to improve its effectiveness and efficiency and create and sustain competitive advantage

Core firms

the central companies in a strategic group

Market commonality

the degree to which two companies have overlapping products, serves, or customers in multiple markets

Resource similarity

the extent to which a competitor has a similar amounts and kinds of resources

Secondary firms

the firms in a strategic group that follow strategies related to but somehow different from those of the core firms

Core capabilities

the internal decision making routines, problem solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs

Corporate level strategy

the overall organizational strategy that addresses the question "what business or businesses are we in or should we be in"

Acquisition

the purchase of a company by another company

Direct competition

the rivalry between two companies that offer similar products and services, acknowledge each other as rival, and act and react to each others strategic actions

Recovery

the strategic actions taken after retrenchment to retune to a growth strategy

Strategic reference points

the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable committee advantage

Distintive competence

what a company can make, do , or perform better than its competitors

Industry level strategy

a corporate strategy that addresses the question "how can we compete in this industry"

Firm level strategy

a corporate strategy that addresses the question "how should we compete adjacent a particular firm"

Strategic dissonance

a discrepancy between a company intended strategy and the strategic action mangers take when implementing that strategy

Grand strategy

a broad corporate level strategic plan used to achieve strategic goals and guide alternatives that managers of individual business or subunits may use

Shadow-strategy task force

a committee within a company that analyzes the company sown weaknesses to determine how competitors could exploit them for competitive advantage

Star

a company with a large share of a fast growing market

Cash cow

a company with a large share of a slow growing market

Question mark

a company with a small share of a fast growing market

Dog

a company with a small share of a slow going market

Sustainable competitive advantage

a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped truing to duplicate

Response

a competitive countermove, promoted by a rival attack, to defend or improve a company market share or profit

Attack

a competitive move designed to reduce a rivals marker share or profits

Portfolio strategy

a corporate level strategy that minimized risk by diversifying investment among various businesses or product lines