| A | B |
|---|
| acquisition | The purchase of a company by another company. |
| analyzers | An adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors. |
| attack | A competitive move designed to reduce a rival’s market share or profits |
| bargaining power of buyers | A measure of the influence that customers have on a firm’s prices. |
| bargaining power of suppliers | A measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs |
| BCG matrix | A portfolio strategy, developed by the Boston Consulting Group, that categorizes a corporation’s businesses by growth rate and relative market share, helping managers decide how to invest corporate funds. |
| cash cow | A company with a large share of a slow-growing market |
| character of the rivalry | A measure of the intensity of competitive behavior between companies in an industry. |
| competitive advantage | Providing greater value for customers than competitors can |
| competitive inertia | A reluctance to change strategies or competitive practices that have been successful in the past |
| core capabilities | The internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs |
| core firms | The central companies in a strategic group |
| corporate-level strategy | The overall organizational strategy that addresses the question “What business or businesses are we in or should we be in?” |
| cost leadership | The positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that the firm can offer the product or service at the lowest price in the industry. |
| defenders | An adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers. |
| differentiation | The positioning strategy of providing a product or service that is sufficiently different from competitors’ offerings that customers are willing to pay a premium price for it. |
| direct competition | The rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other’s strategic actions. |
| distinctive competence | What a company can make, do, or perform better than its competitors. |
| diversification | A strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio. |
| dog | A company with a small share of a slow-growing market. |
| entrepreneurial orientation | The set of processes, practices, and decision-making activities that lead to new entry, characterized by five dimensions: risk taking, autonomy, innovativeness, proactiveness, and competitive aggressiveness. |
| entrepreneurship | The process of entering new or established markets with new goods or services. |
| firm-level strategy | A corporate strategy that addresses the question “How should we compete against a particular firm?” |
| focus strategy | The positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment. |
| grand strategy | A broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use. |
| growth strategy | A strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business |
| imperfectly imitable resources | Resources that are impossible or extremely costly or difficult for other firms to duplicate. |
| industry-level strategy | A corporate strategy that addresses the question “How should we compete in this industry?” |
| intrapreneurship | Entrepreneurship within an existing organization. |
| market commonality | The degree to which two companies have overlapping products, services, or customers in multiple markets. |
| nonsubstitutable resource | nonsubstitutable resource A resource that produces value or competitive advantage and has no equivalent substitutes or replacements. |
| portfolio strategy | A corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines. |
| prospectors | An adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. |
| question mark | A company with a small share of a fast-growing market |
| rare resources | Resources that are not controlled or possessed by many competing firms. |
| recovery | An adaptive strategy of not following a consistent strategy, but instead reacting to changes in the external environment after they occur. |
| related diversification | Creating or acquiring companies that share similar products, manufacturing, marketing, technology, or culture |
| resource similarity | s. |
| resources | The assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, create and sustain competitive advantage, and fulfill a need or solve a problem. |
| response | A strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business. |
