Strategic Business Management: Questions and Answers

1783 WordsMar 9, 20138 Pages
Chapter 6 15) What is a propitious niche? Provide an example of a firm that has been able to successfully occupy a propitious niche. One that is so well suited to the firm 's internal and external environmental that other corporations are unlikely to challenge or dislodge it! - Once filled, the niche is not worth a potential competitor 's time or money to also go after the same niche. Coca-Cola and McDonald’s 16) What are Porter 's four generic strategies? Cost Leadership The cost-leadership strategy is a good option for companies that are able to consistently reduce the costs of doing business. Maintaining low overhead costs and negotiating favorable acquisitions costs with suppliers are key to making this…show more content…
In consolidated industries, companies are interdependent because one’s company competative actions directly affect the market share of its rivals and their profitability. When one company makes a move this generally forces a response from its rivals and the consequence of competitive interdependence can be a dangeerous competitive spiral. Rivalry increases as companies attempt to undercut each others prices or offer customers more value in their products, pushing industry profits down in the process. Companies in consolidated industries sometimes seek to reduce this threat by following the prices set by the dominant company in the industry. 18) What are the types of alliances that business can engage in? Business alliances are often overlooked or not given much consideration by small businesses, yet they can be vital in helping a company grow and prosper. All too often, small businesses think alliances are just for big businesses; as a result, they neither explore nor pursue them. However, they can be just as beneficial for small businesses as they are for large corporations. If a small business is serious about gaining access to new markets, capitalizing on technology, growing profits using shared resources, they should consider a business alliance. It 's no secret, businesses that share resources can create greater efficiencies and become

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