Value chain is a business model used to examine all company activities involved in taking a product or service from idea to sellable item.
Ideally, companies can use the value chain model to strengthen their point of view and widen their profit margin—more efficiency, fewer costs.
What are the 4 factors of competitive advantage
The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.
Is SWOT an industry analysis
The SWOT analysis of an industry uncovers internal and external factors that influence a company’s performance.
Threats and opportunities are considered external factors, while strengths and weaknesses are often internally related.
What are 3 generic strategies
According to Porter’s Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage.
These are: Cost Leadership, Differentiation and Focus.
What are the 6 factors of competitive advantage
The six factors of competitive advantage are: Price, location, quality, selection, speed,turnaround and service.
What causes rivalry among competitors to be stronger
Whereas if the competitors are of equal size or market share, then the intensity of rivalry will increase.
The intensity of rivalry will be high if industry growth is slow. If the industry’s fixed costs are high, then competitive rivalry will be intense.
What is an example of bargaining power of buyers
The Bargaining Power Of Buyers Act As A Competitive Force For instance, Booking, TripAdvisor and Agoda offer competing prices to travelers.
As a customer, you’re bound to pick the offer that gets you a cheaper price, better quality and more amenities.
What are the 4 types of business strategies?
- Organizational (Corporate) Strategy
- Business (Competitive) Strategy
- Functional Strategy
- Operating Strategy
What makes a weak buyer
On the other hand, a weak buyer, one who is at the mercy of the seller in terms of quality and price, makes an industry less competitive and increases profit potential for the seller.
Is value chain a strategy
Value chain analysis is a strategic process where a firm evaluates its internal activities to identify how each contributes to the firm’s competitive advantage.
The ultimate goal of a value chain analysis is to pin down the practices and processes that differentiate a firm from its competitorsfor better or worse.
What means value chain
“Value chains are an integral part of strategic planning for many businesses today. A value chain refers to the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.”
How would you determine the level of competitive intensity in an industry?
- Costs
- Concentration in the Industry
- Rate of Market Growth
- Differentiation
- Switching Costs
- Innovation
- Decrease in Prices
- Economic Growth
What is a growth strategy
A growth strategy is an organization’s plan for overcoming current and future challenges to realize its goals for expansion.
Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving the organization’s products or services.
Is SWOT internal or external
A SWOT (strengths, weaknesses, opportunities and threats) analysis looks at internal and external factors that can affect your business.
Internal factors are your strengths and weaknesses. External factors are the threats and opportunities.
What is consumer bargaining power
What is the Bargaining Power of Buyers? The Bargaining Power of Buyers, one of the forces in Porter’s Five Forces Industry Analysis framework, refers to the pressure that customers/consumers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices.
What is supplier bargaining power
The Bargaining Power of Suppliers, one of the forces in Porter’s Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products.
What is threat of new entry
The Threat of New Entrants, one of the forces in Porter’s Five Forces industry analysis framework, refers to the threat that new competitors pose to current players within an industry.
It is one of the forces that shape the competitive landscape of an industry, and it helps determine the attractiveness of the industry.
What is focus strategy
A focus strategy is a method of developing, marketing and selling products to a niche market, which could be a type of consumer, product line or geographical area.
A focus strategy would center on the expansion of marketing tactics for your company while aiming to establish a new relationship with your target audience.
What is Nike’s competitive strategy
Nikes competitive strategy seems to maintain competitive due to their low cost structure. They have an extremely low cost to create ratio compared to how much they are actually selling all of their products for.
Additionally, they sell their products to such a large target audience.
What is a cost focus strategy
A cost focus strategy is when an organization tries to attract potential customers solely based on pricing.
Organizations that employ this strategy try to beat their rivals’ prices for the least value for their goods on the market.
Organizations that apply this method frequently target a definite market segment.
Is SWOT macro or micro
What is a SWOT Analysis? A SWOT Analysis is the study of the micro and the macro environment surrounding your company to determine their Strengths, Weaknesses, Opportunities and Threats.
What is causal ambiguity
Causal ambiguity is a state of uncertainty that entails incomplete understanding and knowledge (Einhorn and Hogarth, 1986).
However, if no one inside or outside an organization understands the causal connections between resources, activities, and outcomes, then performance becomes a matter of luck rather than strategy.
How do you overcome threats of new entrants
Highly differentiated products or well-known brand names are both barriers to entry that can lower the threat of new entrants.
Significant upfront capital investments required to start a business can lower the threat of new entrants.
Whereas, high consumer switching costs are a barrier to entry.
What is better than a SWOT
A SOAR analysis is considered oriented toward action to a greater degree than a SWOT analysis.
A SWOT analysis is more analytical in its approach. This difference makes SOAR more useful for younger organizations that are developing their identity or brand.
What is the best technique for revealing the different market or competitive position that rival firms occupy in the industry
Strategic group mapping is a tool that organizations use to ascertain the competitive positions that competitors take in the market to remain on top.
Firms use this technique to verify the areas in which they need improvement to sustain for a long duration of time along with the competitors.
Why is VRIO used
If people are honest, VRIO analysis is an effective way to evaluate the resources of the organization.
It also provides valuable insights into the competitiveness of the organization. The focus of the VRIO analysis is on organizational resources.
What is the customer power
It is essentially a consumer’s ability to make a purchase with the amount of money they have available to them.
Typically, the higher the income a consumer has, the higher the buying power they have.
What is VRIO business
What is the VRIO framework, and how does it uncover “sustainable competitive advantage”? VRIO is an acronym for a four-question framework focusing on value, rarity, imitability, and organization, the criteria used to evaluate an organization’s resources and capabilities.
Sources
https://www.questionpro.com/blog/vrio-framework/
https://www.business.qld.gov.au/starting-business/planning/market-customer-research/swot-analysis/uses
https://www.mindtools.com/pages/article/newTMC_05.htm
https://www.investopedia.com/ask/answers/041015/whats-difference-between-porters-5-forces-and-pestle-analysis.asp
https://www.indeed.com/career-advice/career-development/porters-five-forces-example
