Strategic Management and The Entrepreneur
Strategic Management and The Entrepreneur
Strategic Management and The Entrepreneur
and Weaknesses
Strengths
Positive internal factors that
contribute to accomplishing the
mission, goals, and objectives.
Weaknesses
Negative internal factors that
inhibit the accomplishment of the
mission, goals, and objectives.
Technological
Competitive Economic
Strategy? Differentiation
Focus
Cost Leadership
Goal: to be the low-cost producer in the
industry or market segment.
Advantages:
reaching buyers who buy on the basis of
price.
power to set the industry’s price floor.
Works well when:
buyers are sensitive to price changes.
when competing firms sell the same commodity
products.
when a company can benefit from economies of
scale.
Chapter 2: Strategic Mgt Copyright 2003 Prentice Hall Publishing Company 21
Differentiation
Company seeks to build customer loyalty by
positioning its goods or services in a unique or
different fashion.
Idea is to be unique at something customers
value.
Key: Build basis for differentiation on a core
competency, those things that the small
company is uniquely good at doing in
comparison to its competitors.
Example: East Bank Club