What is a cost driver? - ANSWER a factor that has a strong influence on a company's costs
(asset or activity-based)
What is a Value Driver? - ANSWER Quality Control Processes
Product features and performance
Cu
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What is a cost driver? - ANSWER a factor that has a strong influence on a company's costs
(asset or activity-based)
What is a Value Driver? - ANSWER Quality Control Processes
Product features and performance
Customer Service
Production R&D
Technology and Innovation
Input Quality
Employee skill, training, experience
Sales and Marketing
What is a Low-Cost Provider? - ANSWER Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers
What is Broad Differentiation? - ANSWER Differentiating your product to appeal to a broader audience
What is Focused Low-Cost? - ANSWER Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced products
What is Focused Differentiation? - ANSWER Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members
What is Best Cost Provider? - ANSWER Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals
What is Blue-Ocean Strategy? - ANSWER offers growth in revenues and profit by discovering or inventing new industry segments that create an altogether new demand
What is First Mover? - ANSWER a firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position
What is Fast Follower? - ANSWER rapid market evolution allows companies to leapfrog a first mover's products with more attractive next-version products.
What is Later Mover? - ANSWER firm that enters a market some time after both the market pioneer(s) and after fast follower firms.
What is Scope of the Firm? - ANSWER Range of internal activities
Breadth of product and service offerings
geographic market presence and mix of businesses
Size of competitive footprint on market or industry
What is Horizontal Scope? - ANSWER the range of product and service segments that a firm offers within its focal market.
What is Vertical Scope? - ANSWER the extent to which a firm's internal activities encompass one, some, many, or all of the activities that make up an industry's entire value chain system, ranging from raw-material production to final sales and service activities.
What is Vertically Integrated? - ANSWER a firm that participates in multiple stages of an industry's value chain system
What is Backward Integration? - ANSWER expanded the firms range of activities backwards into sources of supply
What is Forward Integration? - ANSWER expand a firms range of activities forward to end users
What is Outsourcing? - ANSWER contracting out value chain activities that are usually performed in-house to outside vendors
What is Strategic Alliance? - ANSWER a cooperative agreement between two entities to share resources, costs and risk in pursuit of a mutually beneficial goal
What is Diamond of National Competitive Advantage? - ANSWER answers important questions about competing on an international basis:
Location and strengths of new entrants
Advantages of value chain activities in a certain country
Foreign Market opportunities where rivals are weak
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