MGT 405 Chpt 6

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LShak87
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67777
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MGT 405 Chpt 6
Updated:
2011-02-21 01:40:43
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strategic management
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Business-Level Strategy and the Industry Environment
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  1. composed of a large number of small and medium sized companies
    fragmented industry
  2. establish networks of linked merchandising outlets that are interconnected by IT and function as one large company
    chaining strategy
  3. the parent company grants to someone the rights to use the parent's name, reputation, and business model in a particular location or area in return for a sizable fee and often a percentage of the profits
    franchising
  4. people who are delighted by being the first to purchase and experiment with a product based on a new technology, even though it is imperfect and expensive
    innovators
  5. they understand that the technology may have important future applications and are willing to experiment with it to see if they can pioneer uses for it
    early adopters
  6. forms the leading wave or edge of the mass market, and their entry into the market signifies the beginning of the growth stage
    early majority
  7. the customers who purchase a new technology or product only when it is obvious it has great utility and is here to stay
    late majority
  8. inherently conservative and distrustful of new technology, frequently refuse to adopt even when beneftis are obvious or unless they are forced to do so
    laggards
  9. gulf that companies must cross between innovators and the early majority, that is, between the embryonic market and the rapidly growing mass market
    competitive chasm
  10. the rate at which the industry's product is bought by customers in that marekt
    growth rate
  11. the degree to which a new product is perceived as better at satisfying customer needs than the product it supersedes
    relative advantage
  12. the degree to which a new product is perceived as being consistent with the current needs or existing values of potential adopeters
    compatibility
  13. the degree to which a new product is perceived as difficult to understand and use
    complexity
  14. the degree to which potential customers can experiment with a new product on a hands-on trial basis
    trialability
  15. the degree to which the results of using and enjoying a new product can be seen and appreciated by other people
    observability
  16. determines the amount and type of resources and capital that must be spent to configure a company's value chain so that it can pursue a business model successfully over time
    invesetment strategy
  17. build market share by developing a stable and distinct competitive advantage to attract customers who have no knowledge of the company's products
    share-building strategy
  18. the goal is to maintain its relative competitive position in a rapidly expanding market and, if possible, to increase it
    growth strategy
  19. seeking to specialize in some way and adopt a focus business model to reduce their investment needs
    market concentration
  20. maintain and increase market share by attracting customers from weak companies exiting the market
    share-increasing strategy
  21. limiting or decreasing its investment in a business and extracing or milking its investment as much as it can
    harvest strategy
  22. expand resources to develop their distinctive competency so as to remain market leaders
    hold-and-maintain strategy
  23. strategy of "filling the niches," or catering ot the needs of customers in all market segmetns to deter entry
    product proliferation
  24. lower prices every time a new company enters the industry or contemplating entering the industry, and then raises prices when threat is gone
    price cutting
  25. the process by which companies increase or decrease product prices to convey their intentions to other companies and so influence the way they price their products
    price signaling
  26. strategy in which a company does exactly what its rivals do
    tit-for-tat strategy
  27. one company assumes the responsibility for setting the pricing option that maximizes industry profitability
    price leadership
  28. expanding market share in its existing product markets
    market penetration
  29. the creation of new or improved products to replace existing one
    product development
  30. finds new market segments for a company's products
    market development
  31. aims at growing in a declinging industry by picking up the market share of companies that are leaving in industry
    leadership strategy
  32. focuses on pockets of demand that are declining more slowly than the industry as a whole
    niche strategy
  33. company sells off the business to others
    divestment strategy
  34. The principle forms of competitive strategy in a fragmented industry are...
    • chaining
    • franchising
    • horizontal merger
    • using the Internet
  35. The principle strategies used by companies in mature industries to deter entry are...
    • product proliferation
    • price cutting
    • maintaining excess capacity
  36. The principle strategies used by companies in mature industries to manage rivalry are...
    • price signaling
    • price leadership
    • nonprice competition
    • capacity control
  37. What are the 4 main strategies a company can pursue when demand is failing?
    • leadership
    • niche
    • harvest
    • divestment

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