MNGT 4800 Exam 2- Zorn With Complete Solutions

MNGT 4800 Exam 2- Zorn With Complete Solutions Two dimensions of business level strategy - answercompetitive advantage- how you make money competitive scope- who you target 5 business level strategies - answerCost leadership Focused cost leadership Differentiation Focused Differentiation Cost leadership profits - answergain a large share of the its target market because of scale economies and offering lowest price Cost leadership risk - answerlack innovation and may concentrate too much on low cost that they lose touch with buyer needs Focused cost leadership - answerFocused cost on a narrow market segment at the lowest cost Focused cost leadership risk - answerneeds or trends may change and the narrow market may become the broad market Differentiation - answeroffers a good different from the rest of the market, uniqueness Differentiation risks - answerprice is too high for the product, may not really be offering a unique product, trends and fads Focused differentiation - answeroffers a good different from the rest of the market to a narrow group that thinks it is unique Focused differentiation risks - answercompetitor may out-focus them, competitors may move into their market and make it more broad Single Business - answer95% revenues come from single business Low Diversification