Podcast
Questions and Answers
In order to pursue cost leadership, companies have to produce the product or service at the ______ costs in the market
In order to pursue cost leadership, companies have to produce the product or service at the ______ costs in the market
lowest
Cost leadership can be reached by achieving low purchasing costs which allow companies to exert ______ on suppliers
Cost leadership can be reached by achieving low purchasing costs which allow companies to exert ______ on suppliers
pressure
Economies of scale help in cost leadership as the more a product is produced, the more the product or service ______
Economies of scale help in cost leadership as the more a product is produced, the more the product or service ______
improves
Experience plays a key role in cost leadership as organizations get better at anticipating market fluctuations and reacting to them through accumulated ______
Experience plays a key role in cost leadership as organizations get better at anticipating market fluctuations and reacting to them through accumulated ______
Signup and view all the answers
By analyzing accumulated experience, companies can optimize internal processes and save ______
By analyzing accumulated experience, companies can optimize internal processes and save ______
Signup and view all the answers
One successful implementation of the cost/price leadership strategy is seen in the case study of the retailer ______
One successful implementation of the cost/price leadership strategy is seen in the case study of the retailer ______
Signup and view all the answers
ALDI focuses on cost/price leadership strategy by negotiating low ______ costs
ALDI focuses on cost/price leadership strategy by negotiating low ______ costs
Signup and view all the answers
One advantage of a differentiation strategy is creating a unique market position with high ______ margins
One advantage of a differentiation strategy is creating a unique market position with high ______ margins
Signup and view all the answers
ALDI optimizes internal processes by striving to simplify and ______ them
ALDI optimizes internal processes by striving to simplify and ______ them
Signup and view all the answers
Instead of forecasting, ALDI runs its business based on current ______
Instead of forecasting, ALDI runs its business based on current ______
Signup and view all the answers
A differentiation strategy requires offering something ______ to customers
A differentiation strategy requires offering something ______ to customers
Signup and view all the answers
Southwest Airlines excels due to its service attitude and ______
Southwest Airlines excels due to its service attitude and ______
Signup and view all the answers
According to Michael Porter, strategy is the creation of a unique and valuable position, involving a different set of ______.
According to Michael Porter, strategy is the creation of a unique and valuable position, involving a different set of ______.
Signup and view all the answers
Michael Porter emphasizes developing a competitive advantage based on one clear, distinctive ______.
Michael Porter emphasizes developing a competitive advantage based on one clear, distinctive ______.
Signup and view all the answers
Henry Mintzberg defines strategy as 'a pattern in a stream of ______.'
Henry Mintzberg defines strategy as 'a pattern in a stream of ______.'
Signup and view all the answers
A competitive advantage provides the organization with a better position in the market compared to its ______.
A competitive advantage provides the organization with a better position in the market compared to its ______.
Signup and view all the answers
An explicit strategy that is too rigid ties organizations psychologically to their pre-defined ______.
An explicit strategy that is too rigid ties organizations psychologically to their pre-defined ______.
Signup and view all the answers
It is necessary to keep a corporate strategy flexible and open to ______.
It is necessary to keep a corporate strategy flexible and open to ______.
Signup and view all the answers
Study Notes
Cost Leadership Strategy
- To pursue cost leadership, companies must produce products or services at the lowest costs in the market.
- Low purchasing costs enable companies to exert pressure on suppliers.
- Economies of scale help in cost leadership as the more a product is produced, the lower the cost per unit.
- Experience plays a key role in cost leadership as organizations get better at anticipating market fluctuations and reacting to them through accumulated knowledge.
- Analyzing accumulated experience helps companies optimize internal processes and save costs.
ALDI's Cost/Price Leadership Strategy
- ALDI focuses on cost/price leadership strategy by negotiating low logistics costs.
- ALDI optimizes internal processes by striving to simplify and standardize them.
- Instead of forecasting, ALDI runs its business based on current sales data.
Differentiation Strategy
- A differentiation strategy requires offering something unique to customers.
- Southwest Airlines excels due to its service attitude and high employee morale.
Strategy Definitions
- According to Michael Porter, strategy is the creation of a unique and valuable position, involving a different set of activities.
- Michael Porter emphasizes developing a competitive advantage based on one clear, distinctive strategy.
- Henry Mintzberg defines strategy as 'a pattern in a stream of actions.'
- A competitive advantage provides the organization with a better position in the market compared to its competitors.
- An explicit strategy that is too rigid ties organizations psychologically to their pre-defined plans.
- It is necessary to keep a corporate strategy flexible and open to adjustments.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on Porter's generic strategies such as cost leadership, differentiation, and focus. Learn about how organizations set strategic goals and pursue strategic advantages according to Porter's classification.
