MGT 405 Chpt 5

  1. desires, wants, or cravings that can be satisfied by means of the attributes or characteristics of a product
    customer needs
  2. process of designing products to satisfy customers' needs
    product differentiation
  3. choosing a set of business-level strategies that work together to give a company a competitive advantage over its rivals
    competitive positioning
  4. a price that offers customers as much or more value than the product of its rivals
    competitive price
  5. sets of people who share a similar need for a particular product
    customer groups
  6. the way a company decides to group customers, based on important differences in their needs or preferences, to gain a competitive advantage
    market segmentation
  7. a product is targeted at the "average customer", minimum customer responsiveness, competitive advantage is achieved through low price, not differentiation
    no market segmentation
  8. a different producgt is offered to each market segment, customer responsiveness is high, competitive advantage achieved through differentiation, not low price
    high market segmentation
  9. targets and develops products for just one or two market segments, competitive advantage can be achieved through either low price or differentiation
    focused market segmentation
  10. the maximum amount of value that the products of different companies in an industry can provide to customers at any one time using the different business models
    value creation frontier
  11. gives a company a specific form of competitive position and advantage vis-a-vis its rivals that results in above average profitability
    generic business-level strategy
  12. a company does everything possible to lower its cost structure so it can make and sell goods or services at a lower cost than its competitiors
  13. business model based on combining the cost leadership and focused business-level strategies to compete for customers in just one or a few market segments
    focused cost-leadership strategy
  14. business model pursues business-level strategies that allow it to create a unique product, one that customers perceive as different or distinct in some important way
  15. combines differentiation and focused generic business-level strategies and specializes in making distinctive products for one or two market segments
    focused differentiation
  16. companies that have developed business-level strategies to better differentiate their products and lower their cost structures simultaneously
    broad differentiators
  17. the set of companies that pursue a similar business model
    strategic groups
  18. The value creation frontier can be reached by choosing among four generic competitive strategies:
    • cost leadership
    • focused cost leadership
    • differentiation
    • focused differentiation
Card Set
MGT 405 Chpt 5
Building Competitive Advantage Through Business-Level Strategy