Home > Flashcards > Print Preview
The flashcards below were created by user
on FreezingBlue Flashcards. What would you like to do?
How do cost leadership strategies create value?
generate economic value by having lower costs than competitors
How do product differentiation strategies create economic value?
generates economic value by offering a product that customers prefer over competitors’ product
The intention of a product differentiation?
- Theintention of a product differentiation strategy is to increase the perceived
- value of the focal firm’s products and/or services relative to the value of
- competitor’s products and/or services
True or false. Typically,
a firms differentiation strategy is likely to rely upon multiple bases of differentiation from multiple BOD categories?
- base of differentiation, we refer to the preferences created by actual differences
- in the tangible product or service offered by the focal firm vis-à-vis
- competitors’ offerings
the size of a golf club head; baking soda in toothpaste
- weights you can insert into a golf club to correct your swing; multiple functions on a
- watch – does the feature make it more complicated to use?
Timing of Introduction?
being the first to market – timing introduction
- locating next to a freeway exit for gas stations; mobile mechanics (ability to move
- refer to the customer preferences that are created as the focal firm develops and
- exploits relationships with customers based on what the focal firm’s target
- customers want
- Dell computer customers get exactly what they want; West Coast Choppers – Custom
- motor cycles
creating brand loyalty to a product or service through image advertising
- a product or service that indicates membership in an elite or socially meaningful
among Functions in the Firm?
- ability to effectively integrate multi-functional R&D or innovation teams in the
- development and transfer of product differentiation ideas
with other Firms?
- Affiliations with highly reputable firms or causes -a sporting goods store sponsors a
- benefit race by donating running shoes and receives free radio advertising in
- return; Mattel toys of Disney movie characters in McDonalds happy meals
- a furniture store begins to sell home gym equipment, computers, and lawn mowers;
- grocery stores that have pharmacies and gas stations
Paul Mitchell hair care products only available through salons
Service and Support?
- an oil change service that offers pick up and delivery of cars to employees of a
- particular firm parking garage
BOD in Fragmented Industry?
BODS in Emerging Industry: ?
first mover advantages
BOD's in Mature Industry?
- firms attempt to differentiate established products by
- “refining” the product—new and improved
- firms may differentiate a product by offering new levels
- of service to accompany the product
BOD's in Declining Industry: ?
- moving toward specialization and/or niches
- by definition
At the business level, the U-Form?``
- used to implement product differentiation strategies just as it is to implement cost
- leadership strategies.
True or false, Decision
making is usually more decentralized in a product differentiation strategy as
compared to a cost leadership strategy.?
Can firms effectively pursue both cost
leadership and product differentiation simultaneously?
- yes, but it is extremely difficult most companies that pursue both end up being
- stuck in the middle, they don’t achieve either cost advantages or successfully
- differentiate their product.
What would you like to do?
Home > Flashcards > Print Preview