Compare & Contrast

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What is Market Development & Who?
Miles et al (1978) growth strategy that identifies and develops new market segments for current products. Targets non-buying customers in current segments & new segments. Goal = to expand into untapped markets.
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Example of MD?
Coca Cola Zero- target new markets with Zero & Diet coke as people becoming more sugar conscious & healthy
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What is Product Development & Who?
Brown (1995) developing new product or category & marketing them in existing markets to same customer base
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Example of PD?
Nissan Leaf- 2 unmet needs environmentally conscious & cost conscious consumer product zero emissions Nissan Leaf. Coca Cola Mixers & Max Factor
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Differences between MD & PD?
MD = strategic approach with developing new segments PD opposite. R&D ^ £ in product development vs market research = ^£ in PD.
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What are similarities between MD & PD?
Both are high risk for business. PD- = high risk when no. of competititors offer similar products (beauty). MD = high risk when company enters market when many are already established.
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What is Competitive Advantage and Who?
Is the leverage a business has over its competitors -> outperform its comp. Gained by offering better & greater value, allows company to achieve superior margins and generate value (Hofer & Schendel, 1978)
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Example of CA?
Amazon CA by Prime 1-day delivery people keep paying prime membership don't want to revert to 3-7days.
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Another example of CA?
Linked in not conventional SM network focused on business professional niche- added value.
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What is SCA? Who?
Achieved through companies assets/attributes/abilties enables it to exceed competitiors & gain favorable LT position (Oliver, 1999) Porter (1985) SCA 'resists erosion by competitor behavior' hard to imitate.
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Example of SCA?
Coca Cola unrivalled distribution network over 200countries, infrastructure difficult and costly to acquire. Distribution network - EOS hard to achieve.
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Differences between SCA & CA?
SCA - LT strategy/process to remain ahead, multi-faceted. CA temporary ST, competitors may be able to duplicate.
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Similarities between SCA & CA?
Both enable firm to outperform competitors.
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What is MBV?
Emphasises the role of market conditions in developing strategy for firms, places primary importance on external conditions, about the firm creating a 'market position' to defend itself and or influence to gain CA (Oketgmil, 2019)
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MBV
allows business to identify threats and opportunities
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Example of MBV?
PESTEL - 6 main types of environmental influence on possible success or failure, Porter's 5 forces- helps determine industry attractiveness.
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What is RBV?
Focuses on the firms resources and capabilties (Helfat and Peteraf, 2003) R&Cs (Barney, 1991) RBV analysis powerful tool for assessing company's competitive assets.
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Example of RBV?
VRIN Framework (1991) -> Dyson. Value Chain Analysis -> Zara
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Differences between MBV & RBV?
MBV - key objectives = to neutralize market forces, enter attractive markets, address customer needs vs RBV objectives to identify develop & exploit internal R&Cs
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Differences between MBV & RBV?
MBV focused on structural characteristics of industry & its segments. RBV focused on characteristics of firm specific resources.
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What is EOS?
Cost advs reaped by companies when production becomes efficient over a larger number of goods (Stinger 1958), costs can be both fixed and variable. Diff types of EOS internal and external.
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What is External EOS?
Occur within an industry growing industry = ^ manufacturers drives cost down for businesses = EOS
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What is Internal EOS?
Arise from growth of business itself e.g. large firm can spread advertising, marketing budget over large output and it can purchase its inputs in bulk at a negotiated discount if it has sufficient market power (Aldi)
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What is Economies of Learning?
The relationship between the cost and the output over a defined period of time, normally to represent the reptititive task of an employee or worker.
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Factors contributing to EOL:
Factors contributing to EOL: employees learn to do their job more efficiently, better coordination of different functions, faster production processes.
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Differences between EOS, EOL?
EOL does not depend on producing more quantity or wider portfolio but from becoming a true specialist.
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Similarities between EOS and EOL?
Both ^ efficiency, enable comp adv by reducing production costs.
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Other cards in this set

Card 2

Front

Example of MD?

Back

Coca Cola Zero- target new markets with Zero & Diet coke as people becoming more sugar conscious & healthy

Card 3

Front

What is Product Development & Who?

Back

Preview of the front of card 3

Card 4

Front

Example of PD?

Back

Preview of the front of card 4

Card 5

Front

Differences between MD & PD?

Back

Preview of the front of card 5
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