Chapter 7, Small Business Strategies
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
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
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
Imitative Strategy
An overall strategic approach in which the entrepreneur does more or less what others are already doing.
Gross Profit
Funds left over after deducting the cost of goods sold
All 5 Steps
Introduction stage, Growth stage, Maturity stage, Decline stage, Retrenchment
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
Target Market
a group of consumers or organizations most likely to buy a company's products or services
Market
business term for the population of customers for your product or service
Scope
geographic range covered by the market Local to Global
Industry Cycle
goes through during the course of its life cycle in the market
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
planning is an organization's process of defining its strategy, or direction, and making decisions
Scale
size of the market
Boom
type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time
