SHORT QUESTIONS
What are the advantages and disadvantages of differentiation strategy?
Organisations pursue a sustainable competitive advantage by making their products and services unique and distinctive.
Differentiation can create brand loyalty, making it harder for other firms to compete and reducing price sensitivity.
Creating a differentiated competitive advantage is a high-cost strategy.
Businesses adopting this strategy must be prepared to deal with their differentiation strategies being copied by competitors.
What are the advantages and disadvantages of focus strategy?
Because they serve customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers.
The danger with this approach is that the company’s ‘eggs are all in the same basket’. They are very vulnerable as small, specialist niches, may disappear over time.
Focusing on a niche market can become expensive (research, development, marketing, expensive resources)
Competitors may copy in the footsteps of the business with features, products or services, reducing the unique advantage.
What is corporate-level strategy?
Corporate-level strategy refers to decisions about what businesses a firm should compete in and how the overall portfolio of businesses creates value
What is vertical integration?
Vertical integration is when a company takes ownership of suppliers, distributors, or retail locations to obtain greater control of its supply chain.
Explain synergy in corporate strategy?
Synergy occurs when combined business units generate greater value together than separately
What is Business Model Canvas?
A strategic tool that describes a company’s business model using 9 building blocks by Alexander Osterwalder.