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13 Cards in this Set

  • Front
  • Back
Business-level Strategy
actions firms take to gain competitive advantage in single market or industry
Corporate-level Strategy
actions firms take to gain competitive advantage by operating in multiple markets or industries
Cost leadership biz strat
gain advantage by reducing costs below all competitors
sources of cost leadership
economies of scale, diseconomies of scale, experience/learning curve, access to low-cost inputs, technological advantages and policy choices
economies of scale
increase in firm size associated with lower costs (average cost per unit decreases) (examples: large cost saving machines, employee specialization, spread of overhead)
diseconomies of scale
average cost per unit begin to rise (firm becomes too complex, employees become unmotivated because jobs become more simplistic/specific, expanding to global market and gaining more specific costs for that expansion)
learning curve
the more you do something the lower it starts to cost per unit, acquire market share over time
technological hardware
machines and robots
technological softwarte
quality of relations between labor and management
low cost policy choices
what product mix to provide, simple standardized products
economics of learning curve
the higher cummulation of total products output the lower the cost per unit (airplanes cost dropped 20% everytime cummulative production doubled)
Cost advantage VRIO?
Rare (normally if first to produce more likely to have early economies of scale, when most firms operate on small basis won't have economies of scale) Imitable (economies of scale easy to duplicat, learning curve can be hard to duplicat, technology can be bought), access to low cost units can be hard to duplicate, organized (management motivates employees to reduce costs)
U-form structure
everyone reports to CEO and he looks over entire breadth of companhy