Business Strategy Overview Quiz

<p>Operational effectiveness is a part of a good strategy. (A)</p> Signup and view all the answers

<p>Increased access to market capital for large-scale investments (A)</p> Signup and view all the answers

<p>SWOT Analysis (A)</p> Signup and view all the answers

<p>The influence of few buyers or suppliers on price (D)</p> Signup and view all the answers

<p>External structural factors affecting industry competition (A)</p> Signup and view all the answers

<p>Creating new demand with unique value propositions (B)</p> Signup and view all the answers

<p>Resources and capabilities (C)</p> Signup and view all the answers

<p>Emergent strategies develop adaptively through market feedback (B)</p> Signup and view all the answers

<p>It requires a balance of fit, trade-offs, and adaptability (B)</p> Signup and view all the answers

<p>A group of firms offering products meeting the same customer needs (D)</p> Signup and view all the answers

<p>Brand loyalty (B)</p> Signup and view all the answers

<p>Erosion of growth due to intense competition (D)</p> Signup and view all the answers

<p>Increased switching costs between competitors (B)</p> Signup and view all the answers

<p>Netflix moving from DVD rentals to streaming (D)</p> Signup and view all the answers

<p>By boosting demand for cable and streaming services (D)</p> Signup and view all the answers

<p>The rate of profit growth within the industry (D)</p> Signup and view all the answers

<p>Creating a unique market segment to fend off threats (B)</p> Signup and view all the answers

<p>By leveraging changing market conditions (A)</p> Signup and view all the answers

<p>By addressing the Five Forces effectively (D)</p> Signup and view all the answers

<p>They help create a cohesive owner's community (C)</p> Signup and view all the answers

<p>Differentiating the product and building a strong brand (B)</p> Signup and view all the answers

Creating new market demand by offering a differentiated value proposition that no existing company has yet delivered, often entering new or shifting the boundaries of existing industries.

Existing markets where competition is intense, growth is slow, and profit margins are squeezed.

A strategic approach emphasizing a company's internal resources and capabilities as sources of competitive advantage.

A strategy that develops through adaptation to real-time market feedback and operational experience, rather than rigid, centralized planning.

A group of companies that offer products or services to customers with similar needs.

A company's ability to outperform its rivals in the market.

A competitive edge that can be maintained over time.

The evaluation of the factors that affect profitability in an industry.

A plan outlining where to compete (industry/market) and how to compete (firm's position and activities) to achieve superior and sustainable financial returns.

Understanding the business landscape and choosing a competitive position within that landscape.

Aligning activities and ensuring consistency across the organization to achieve and sustain superior returns.

Simply using tools like marketing, innovation, or cost-cutting. True strategy is about competitive positioning in a challenging environment.

Doing things efficiently and effectively (e.g., cost reduction) but not sufficient to achieve competitive advantage.

Military roots: Strategy focus on overarching goals beyond tactics. 19th-century business: New reasons to apply strategy due to the second industrial revolution, access to capital, and economies of scale.

An overarching plan to marshal an organization for success in an uncertain environment.

It shifted the focus to industry structures affecting profitability by considering factors that influence industry profitability.

The ease of switching between competitors versus complements. Complements gain more power when switching between them is more difficult than switching between competitors.

Complementary products can significantly increase demand for other products. For example, the Premier League can boost the demand for cable and streaming services.

When one core market can enter a complement market but not vice versa. For example, automakers can leverage battery technology, but battery companies can't easily enter the car manufacturing market.

Rapid profit growth can decrease the influence of complements on an industry. This is because the opportunity for profits becomes more attractive than relying heavily on complementary products.

Creating a distinct and unique position within a market segment, differentiating yourself from competitors to avoid threats and leverage opportunities.

Leveraging changes in the industry over time, identifying and adapting to shifts to gain an advantage.

Companies like The Economist Group and Southwest Airlines show it's possible to succeed in highly competitive environments by addressing the Five Forces effectively.

Understanding the Five Forces, profitability in difficult industries, and the importance of positioning and creating attractive environments, are crucial for success.