| A | B |
|---|
| Porter's Generic Strategies | A strategic management concept developed by Michael Porter |
| Cost Leadership | A strategy aimed at becoming the lowest-cost producer in the industry. Companies adopting this strategy strive to improve operational efficiency |
| Differentiation | This strategy involves making one's products or services unique and attractive to consumers in ways other than price. Aspects such as superior quality |
| Cost Focus | This strategy aims to become the lowest-cost producer for a specific |
| Differentiation Focus | This strategy seeks to offer a unique or differentiated product or service to a specific |
| Competitive Advantage | The edge that allows a business to outperform its competitors. It can be achieved through the efficient and effective implementation of any of the above strategies |
| Niche Market: A narrowly defined group of potential customers that have specific needs | preferences |
| Economies of Scale | Reductions in cost per unit that arise from increased total output of a product. Economies of scale can be utilized in the Cost Leadership strategy to achieve lower production costs. |
| Sustainable Competitive Advantage | A long-term |
| Market Segment | A group of consumers or organizations sharing one or more characteristics causing them to have similar product and/or service needs. Market segments are targeted specifically in the Cost Focus and Differentiation Focus strategies. |
| Value Chain | A set of activities that a firm performs in order to deliver a valuable product or service to its market. Each of these activities can contribute to a firm's relative cost position and create a basis for differentiation. |
| Operational Efficiency | A measure of the efficiency of a company's operating processes. It's often linked to the Cost Leadership strategy |
| Brand Image/Reputation | The perception of a brand in the minds of customers |
| Product Innovation | The development and market introduction of a new |
| Price Sensitivity | The degree to which the price of a product affects consumers' purchasing behaviours. Price sensitivity can be a significant factor in industries where the Cost Leadership strategy is employed. |
| Supply Chain Management | The management of the flow of goods and services |
| Customer Loyalty | The result of consistently positive emotional experiences |
| Unique Selling Point (USP) | This refers to the unique benefit or advantage that sets a product or service apart from its competitors. A USP could be a unique feature |
