Differentiation Strategy Activities
Give this one a try later!
Creates higher entry barriers due to customer loyalty.
Provides higher margins that enable the firm to deal with supplier power.
Reduces buyer power because buyers lack suitable alternatives.
Establishes customer loyalty and hence less threat from substitutes.
,What options might a strategist consider when a turnaround is needed?
Give this one a try later!
The firm must (1) externally analyze to identify market segments or
customer groups that may still find the product/service attractive (2)
internally analyze to discover actions aimed at reduced costs and higher
efficiency.
Vertical Market Failure
Give this one a try later!
When the markets along the industry value chain are too risky, and
alternatives too costly in time or money.
Geographic Diversification
Give this one a try later!
Increase in variety of markets / geographic regions
Regional, national, or international markets
Differentiation Strategy Pitfalls
Give this one a try later!
, Uniqueness that is not valuable.
Too much differentiation.
Too high a price premium.
Differentiation that is easily imitated.
Dilution of brand identification through product line extensions.
Perceptions of differentiation may vary between buyers and sellers.
Decline Strategies
Give this one a try later!
Maintaining the product position
Harvesting profits and reducing costs
Exiting the market
Consolidating or acquiring surviving firms
Star - High Relative Market Share & High Market Growth
Give this one a try later!
Earnings: High, stable, or growing
Cashflow: Neutral
Strategy: Hold or invest for growth
Turnaround Strategy
Give this one a try later!
Give this one a try later!
Creates higher entry barriers due to customer loyalty.
Provides higher margins that enable the firm to deal with supplier power.
Reduces buyer power because buyers lack suitable alternatives.
Establishes customer loyalty and hence less threat from substitutes.
,What options might a strategist consider when a turnaround is needed?
Give this one a try later!
The firm must (1) externally analyze to identify market segments or
customer groups that may still find the product/service attractive (2)
internally analyze to discover actions aimed at reduced costs and higher
efficiency.
Vertical Market Failure
Give this one a try later!
When the markets along the industry value chain are too risky, and
alternatives too costly in time or money.
Geographic Diversification
Give this one a try later!
Increase in variety of markets / geographic regions
Regional, national, or international markets
Differentiation Strategy Pitfalls
Give this one a try later!
, Uniqueness that is not valuable.
Too much differentiation.
Too high a price premium.
Differentiation that is easily imitated.
Dilution of brand identification through product line extensions.
Perceptions of differentiation may vary between buyers and sellers.
Decline Strategies
Give this one a try later!
Maintaining the product position
Harvesting profits and reducing costs
Exiting the market
Consolidating or acquiring surviving firms
Star - High Relative Market Share & High Market Growth
Give this one a try later!
Earnings: High, stable, or growing
Cashflow: Neutral
Strategy: Hold or invest for growth
Turnaround Strategy
Give this one a try later!
