MGMT Chap 6 terms pt 2

  1. Market commonality
    the degree to which two companies have overlapping products, services, or customers in multiple markets
  2. Nonsubstitutable resources
    resources that produce value or competitive advantage and have no equivalent substitutes or replacements
  3. Portfolio strategy
    a corporate–level strategy that minimizes risk by diversifying investment among various businesses or product lines
  4. prospectors
    firms that adopt an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market
  5. Question mark
    a company with a small share of a fast–growing market
  6. Rare resources
    resources that are not controlled or possessed by many competing firms
  7. reactors
    firms that take an adaptive strategy of not following a consistent strategy, but instead reacting to changes in the external environment after they occur
  8. recovery
    the strategic actions taken after retrenchment to return to a growth strategy
  9. Related diversification
    creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures
  10. Resource similarity
    the extent to which a competitor has similar amount sand kinds of resources
  11. resources
    the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, create and sustain competitive advantage, and fulfill a need or solve a problem
  12. response
    a competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit
  13. Retrenchment strategy
    a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
  14. Secondary firms
    the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms
  15. Situational (SWOT) analysis
    an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment
  16. Stability strategy
    a strategy that focuses on improving the way in which the company sells the same products or services to the same customers
  17. star
    a company with a large share of a fast–growing market
  18. Strategic dissonance
    a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy
  19. Strategic group
    a group of companies within an industry that top managers choose to compare, evaluate, and benchmark strategic threats and opportunities
  20. Strategic reference points
    the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage
  21. Sustainable competitive advantage
    a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
  22. 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
  23. Threat of substitute products or services
    a measure of the ease with which customers can find substitutes for an industry’s products or services
  24. Unrelated diversification
    creating or acquiring companies in completely unrelated businesses
  25. Valuable resources
    resources that allow companies to improve efficiency and effectiveness
Card Set
MGMT Chap 6 terms pt 2
Second pt of chap 6 terms