BIZ 3951 Strategic Analysis & Formulation

These flashcards cover key concepts related to strategic analysis and formulation, specifically focusing on business-level strategies such as cost leadership and differentiation.

Cost Leadership

A business strategy that aims to have the lowest cost of operation in the industry to drive competitive advantage.

Economies of Scale

Cost advantages that a business obtains due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units.

Differentiation Strategy

A competitive strategy that involves creating products or services that offer unique attributes and high perceived value to the customers.

Value Chain Reconfiguration

The process of restructuring the value chain to enhance efficiency, reduce costs, or improve product quality.

Primary Activities

Activities in a company that are directly involved in the creation and delivery of products and services.

Support Activities

Activities that assist primary activities in helping the organization achieve its competitive advantage.

Process Efficiency

Maximizing efficiency in the operational processes to reduce costs and enhance productivity.

Differentiation Drivers

Factors that enable a company to differentiate its products or services from competitors.

Niche Market

A specialized segment of the market for a specific kind of product or service.

Capacity Utilization

The extent to which an enterprise or a nation utilizes its installed productive capacity.