MGT 405 Chpt 6

composed of a large number of small and medium sized companies

establish networks of linked merchandising outlets that are interconnected by IT and function as one large company

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

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

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

forms the leading wave or edge of the mass market, and their entry into the market signifies the beginning of the growth stage

the customers who purchase a new technology or product only when it is obvious it has great utility and is here to stay

inherently conservative and distrustful of new technology, frequently refuse to adopt even when beneftis are obvious or unless they are forced to do so

gulf that companies must cross between innovators and the early majority, that is, between the embryonic market and the rapidly growing mass market

the rate at which the industry's product is bought by customers in that marekt

the degree to which a new product is perceived as better at satisfying customer needs than the product it supersedes

the degree to which a new product is perceived as being consistent with the current needs or existing values of potential adopeters

the degree to which a new product is perceived as difficult to understand and use

the degree to which potential customers can experiment with a new product on a hands-on trial basis

the degree to which the results of using and enjoying a new product can be seen and appreciated by other people

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

build market share by developing a stable and distinct competitive advantage to attract customers who have no knowledge of the company's products

the goal is to maintain its relative competitive position in a rapidly expanding market and, if possible, to increase it

seeking to specialize in some way and adopt a focus business model to reduce their investment needs

maintain and increase market share by attracting customers from weak companies exiting the market

limiting or decreasing its investment in a business and extracing or milking its investment as much as it can

expand resources to develop their distinctive competency so as to remain market leaders

strategy of "filling the niches," or catering ot the needs of customers in all market segmetns to deter entry

lower prices every time a new company enters the industry or contemplating entering the industry, and then raises prices when threat is gone

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

strategy in which a company does exactly what its rivals do

one company assumes the responsibility for setting the pricing option that maximizes industry profitability

expanding market share in its existing product markets

the creation of new or improved products to replace existing one

finds new market segments for a company's products

aims at growing in a declinging industry by picking up the market share of companies that are leaving in industry

focuses on pockets of demand that are declining more slowly than the industry as a whole

company sells off the business to others

The principle forms of competitive strategy in a fragmented industry are...

The principle strategies used by companies in mature industries to deter entry are...

The principle strategies used by companies in mature industries to manage rivalry are...

What are the 4 main strategies a company can pursue when demand is failing?