Business Level Strategy 0.0 / 5 ? Business ManagementStrategic ManagementUniversityAll boards Created by: Bethany KeyesCreated on: 08-05-17 21:53 What is a strategic business unit (SBU)? Supplies goods or services for a distinct domain of activity 1 of 14 What are the two types of SBU business strategy? Generic strategy (Porter) and interactive strategy 2 of 14 What is the low cost broad market type of generic strategy? (Porter) Cost leadership 3 of 14 What is the high cost broad market type of generic strategy? (Porter) Differentiation 4 of 14 What is the low or high cost, narrow market type of generic strategy? (Porter) Focused strategy 5 of 14 What are the 4 key cost drivers for cost leadership? Lower input costs, economies of scale, economies of learning and product techniques & designs 6 of 14 What is the law of experience within economies of learning? The unit cost value added to a standard product declines by a constant percentage each time cumulative output doubles 7 of 14 What is the goal of value chain analysis? To minimise the operational costs throughout the value chain 8 of 14 What is differentiation? Uniqueness along some dimension that is valued by customers, allowing for a price premium 9 of 14 What are the components of The Strategy Clock? (Bowman) Low price & low added value, low price, hybrid, differentiation, focused differentiation, risky high margins, monopoly pricing and loss of market share 10 of 14 What is strategic lock-in? When users become dependent on a supplier and are unable to use another supplier without substantial switching costs 11 of 14 What are blue oceans? New market spaces where competition is minimised 12 of 14 What are red oceans? Industries that are already well defined where rivalry is intense 13 of 14 What is game theory in relation to strategy? Encouraging an organisation to consider its competitors' likely moves and the implications of these moves for its own strategy 14 of 14
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