Strategic Analysis & Formulation

These flashcards cover key concepts related to business-level strategy, core competencies, competitive advantage, and Porter's generic strategies.

Business-Level Strategy

The strategy of a single-business firm or a business unit of a multi-business corporation, focused on how to win in a specific market against competitors.

Core Competencies

The resources and/or capabilities that are chosen to be the source of a firm's intended competitive advantages.

Competitive Advantage

The ability to produce superior returns compared to rivals in a specific product-market space.

Porter’s Generic Strategies

A framework that identifies different types of competitive advantage such as cost leadership and differentiation.

Cost Leadership

A generic strategy to achieve competitive advantage by being the lowest-cost producer in the industry.

Differentiation

A strategy aimed at producing unique products or services to stand out in the market and command a premium price.

Focus Strategy

A strategy that targets a specific niche market either through cost focus or differentiation focus.

Sustainable Competitive Advantage

An advantage that can be maintained over time, allowing a firm to consistently outperform its rivals.

Key Success Factors

Critical elements that are necessary for a firm to achieve competitive advantage in its industry.

Economic Value

Calculated as VALUE = Volume * Margin, representing the profit a firm earns from its competitive advantage.