| Term | Definition |
|---|
| Corporate-level Strategy | The businesses that the company will compete in (diversified or single business) |
| Business-level Strategy | How we will compete in those businesses (Broad or Focused target market / Low cost or Product differentiation) |
| Driving Forces | The major underlying causes of changing industry and competitive conditions – they have the biggest influence on how the industry landscape will be altered. Some originate in the outer ring of macro environment and some originate from the inner ring. |
| Key Success Factors | product attributes, competencies, competitive capabilities, and market achievements with the greatest impact on future competitive success in the marketplace. |
| Strategic Group Mapping | A technique for displaying the different market or competitive positions that rival firms occupy in the industry. |
| SWOT Analysis | Tool used for sizing up a company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being. |
| Competence | An activity that a company has learned to perform well. |
| Core Competence | A competitively important activity that a company performs better than other internal activities. |
| Distinctive Competence | competitively important activity that a company performs better than its rivals – it thus represents a competitively superior resource strength. |
| Value Chain | Identifies the primary activities that create customer value and the related support activities. |
| Benchmarking | A potential tool for learning which companies are best at performing particular activities and then using their techniques for "best practices" to improve the cost and effectiveness of a company's own internal activities. |
| Strategic Cost Analysis | Comparing a firm's cost position relative to key competitors activity by activity. (From raw materials purchase to Price paid by ultimate customers) Assessing if firm's costs are competitive with those of rivals is a crucial part of company situation analysis |
| Activity-Based Costing | A costing model that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption by each: it assigns more indirect costs (overhead) into direct costs. |
| Competitive Strength Assessment | Reveals strength of firm's competitive position. Shows how firm stacks up against rivals Indicates whether firm is at a competitive advantage/disadvantage against each rival. Provides insight into how firm can build its strategy on its competitive strengths. Provides insight into how firm can make strategic moves to alleviate its competitive weaknesses |
| Competitive Strategy | Concerns the specifics of management's game plan for competing successfully and securing a competitive advantage over rivals. |
| Broad Low-Cost Strategy | Achieve lower overall costs than rivals and appealing to a broad spectrum of customers. (Under price rivals) |
| Broad Differentiation Strategy | Differentiate the company's product offering from rivals' in ways that will appeal to a broad spectrum of buyers. |
| Best Cost Strategy | Give customers more value for their money by incorporating good-to-excellent product attributes at a lower cost than rivals. |
| Focused Low-Cost Strategy | Concentrate on a narrow buyer segment and outcompeting rivals by having lower costs than rivals and thus being able to serve niche members at a lower price. |
| Focused Differentiation Strategy | Concentrate on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals' products. |
Combine with other sets
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