MGT 4090 Management Policy & Strategy Week 6

These flashcards cover key concepts from MGT 4090 Management Policy & Strategy, focusing on business-level strategy and competitive advantage.

Business Level Strategy

Goal-directed actions to achieve competitive advantage in a single product market.

Competitive Advantage

The advantage gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.

Strategic Position

A strategic profile based on value creation and cost in a specific product market. Where you want to be on your consumer’s mind.

Strategic Trade-Offs

Choices between a cost or value position that maximize the firm's economic value creation.

Differentiation Strategy

A strategy that seeks to create higher value by offering unique features and charging higher prices.

Cost Leadership Strategy

A strategy aimed at reducing cost below competitors while offering adequate value.

Economies of Scale

The cost advantage that arises with increased output, resulting in a decrease in cost per unit.

Learning-Curve Effects

Reduction in production costs as a result of learning and improving processes over time.

Experience-Curve Effects

Improvements in technology and production processes leading to cost reductions.

Generic Business Strategies

Strategies that include differentiation and cost leadership to gain competitive advantage.