7. Small Business Strategies
Imitative Strategy
An overall strategic approach in which the entrepreneur does more or less what others are already doing
Market
business term for the population of customers for your product or service
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 stage
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.
Innovative Strategy
An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing.
Industry Cycle
Changes in competitors, sales and profits in an industry over time.
Gross Profit
Funds left over after deducting the cost of goods sold.
Net Profit
The amount of money left after operating expenses are deducted from the business.
Introductory stage
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.
Scope
geographic range covered by the market Local to Global
Mass Market
large portions of the population
Niche Market
narrowly defined segment of the population that is likely to share interests or concerns
Strategy Process
prestrategy customer and benefits industry dynamics and Analysis Post start up strategy
Scale
size of the market