Strategy and Entrepreneurship Final

Strategy

A comprehensive, goal-oriented plan a firm takes to gain and sustain superior performances relative to competitors.

Comparative Advantage

The ability of a firm to produce a good or service at a lower opportunity cost than its competitors.

Corporate Strategy

Determines where to compete in terms of markets and business sectors.

Business Strategy

Focuses on how to compete within a specific industry or market.

Functional Strategy

Actions taken to achieve business and corporate strategy.

AFI Framework

A tool used in strategic management that includes Analysis, Formulation, and Implementation.

Intended Strategy

A top-down approach to strategy planning based on managerial foresight.

Realized Strategy

The actual strategy that a firm follows, which may differ from the intended strategy due to various factors.

PESTEL Method

A strategic tool to analyze external factors: Political, Economic, Social, Technological, Environmental, and Legal.

Porter’s 5 Forces Framework

A model that identifies five competitive forces that shape industry competition: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and industry rivalry.

Industry Analysis

A rigorous evaluation of an industry's profit potential and the competitive landscape.

Competitive Industry Structure

The composition and characteristics of firms in an industry, including the number of competitors and their market share.

Core Competencies

Unique capabilities that provide a competitive advantage.

VRIO Framework

A tool to evaluate a firm's resources and capabilities for their potential to create competitive advantage.

Economies of Scale

Cost advantages gained by an increased level of production.

Cost Leadership Strategy

A competitive strategy aimed at being the lowest-cost producer in an industry.

Blue Ocean Strategy

A strategic approach focusing on creating new market spaces instead of competing in existing markets.

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, designs, and brand names.

Non-Compete Agreements

Contracts preventing employees from entering into competition with their employer after employment ends.

Provisional Patent Application

An initial application to secure a filing date for an invention before filing a formal patent.

Network Effects

Increases in a product or service's value as more users adopt it.

Shakeout

A phase in an industry’s life cycle characterized by increased competition leading to the elimination of weaker firms.

Complement,

A product or service that enhances the value of a related product or service.