Strategic Management: Key Concepts and Competitive Advantages
What is strategy? How do you define it?
- Continuous adaptation to changes and dynamics in the environment.
- The set of actions directed towards a specific objective. The result of the competition.
- The sum of a and b.
How are capabilities defined in a company?
The ability or competence to develop tasks successfully.
The flagship products of the Boston Consulting Group:
They have large financial needs to be covered.
Which are the 2 axes of the McKinsey and General Electric matrix?
Market appeal and competitive position of the product.
What is the best development strategy to achieve economies of scale and the experience curve?
The single business strategy.
What is the best development strategy to obtain a greater reduction in the company’s global risk?
Unrelated diversification.
What is the economy of experience?
The reduction in production costs, with the reduction in the time it takes to produce the product, as a result of a gradual increase in the number of units manufactured.
When is it recommended for a leading company to develop a second brand against a challenging company?
Being a leading company, it is not always required to develop a second brand; lowering prices might be sufficient.
Integrity:
The extent to which a product achieves the balance of its many characteristics such as basic function aesthetics, etc.
What are the types of competitive advantage that a company can achieve?
Two types: in costs and in differentiation.
What is the relevant market?
The part of the reference market in which the company operates, which therefore includes the product markets that the company is working on.
What is the field of activity of the company, how can we define it?
The relevant market.
When is it considered necessary to carry out a market test on a new product?
When both investment costs and expected sales are minimal.
What is the experience economy?
It is the reduction in production costs growth by a reduction in manufacturing times as a result of the gradual increase in the number of units manufactured.
When does the competitive advantage in differentiation appear?
When the company is able to reach a higher price in the market that exceeds its production and distribution costs.
What is the economy of experience?
The reduction in production costs, with the reduction in the time it takes to produce the product, as a result of a gradual increase in the number of units manufactured.
What is the experience economy?
It is the reduction in production costs growth by a reduction is manufacturing times as a result of use gradual increase in the number of units manufactured.
According to Ansoff, how would you define the development or growth strategy called “consolidation”?
A strategy that does not seek growth.
What are the types of competitive advantages that a company can achieve?
Competitive advantage in product, price, and differentiation.
How are “capabilities” defined in the company?
Capabilities are the ability or competence a company has to perform a task successfully.
What is the relevant market?
Part of the reference market in which the company operates. It includes the market products that the company is really targeting.
What is strategy and how is it defined?
The sum of a and b.
The star products of the BCG matrix
Have large financial needs that must be covered.
What is the company’s “field of activity”?
It is the “relevant market.”
What are the two axes of the McKinsey General Electric matrix?
Market appeal and competitive position of the product.
What does the restructuring strategy consist of?
It occurs when the company recomposes its business portfolio while maintaining or reducing its size, which implies a change in its field of activity.
What is the best development strategy to achieve economies of scale and experience economies?
Single business strategy.
What is the development strategy with which better prevention against exclusion from the market is achieved by guaranteeing the supply of scarce materials to the company?
Vertical integration.
What is the best development strategy to obtain a greater reduction of the company’s Overall risk (bankruptcy…)?
Unrelated diversification.
In which development strategy is there a clear absence of synergies between the company’s different businesses?
Unrelated diversification.
How is “strategic orientation” defined within the product development stages?
Set of objectives and policies established by the company to drive the process.
What is a new product from a market (consumer) point of view?
It is any product that is perceived as new.
Challenging strategies: what was the strategy developed by the Japanese automobile industry in the second half of the last century to attack the American automobile market, characterized by large cars and high consumption?
Flank attack.
When does competitive advantage appear in differentiation?
When a company is able to achieve a market price that exceeds the cost produced by providing said differentiation.
For the competitive advantage to be consistent and effective, the company needs to put in place a series of differentiation measures, for instance the integrity. How can we define the integrity?
Integrity is the extent to which a product achieves the balance of its features or characteristics, such as basic functions, reliability, etc.
When is it recommended for a leading company to develop a “second brand” in the face of a challenger?
When a challenger breaks the defense strategy and seizes a significant part of the leader market in those segments in which he is weakest.
When is it not necessary to perform a market test?
When the investment costs or the expected sales of the product are low.
What kind of resources is the final one:
Tangible.