Strategic Management Important Questions

Topics: Marketing, Strategic management, Customer Pages: 6 (1637 words) Published: July 16, 2013
1. Define Business Level Strategy
integrated and coordinated set of commitments and actions the firm uses to aim a competitive advantage by exploiting core competencies in specific product markets. indicates the choiced the firm has made about how it intends to compete in individual product markets is the core strategy - the strategy that the firm forms to describe how it intends to compete in the product market customers are the foundation of successful business level strategies and should never be taken for granted. in terms of customers whenselecting a business level strategy , the firm determines (1) who will be served (2) what needs those target customers have that it will satisfy and (3) how those needs will be satisfied. PURPOSE OF BUSINESS LEVEL STRATEGY

- create differences between the firm's position and those of its competitors. - "choosing to peform activities differently or to perform different activities than rivals" is he essence of business level strategy successful use of a business level stratey results only when the firm learns how to integrate the activities it performs in ways that create superior value for customers.

2. Relationship between customers and business level strategies in terms of who what and how strategic competitiveness results only when the firm satisfies a group of customers by using its competitiveness advantages as the basis for competing in individual product markets. a key reason firms must satisfy customers with their business-level strategy is that returns earned from relationships with customers are the lifeblood of all organizations. strong interactive relationships with customers often provide foundatioons for the firm's efforts to profitably serve customer's unique needs.

Example Harra's Entertainment
amazon.com

Reach Richness and Affliation
- The reach dimension of relationship with customers is concerned with the firm's access and connection to customers. In short, the firm seek to extend their reach, adding customers in the process of doing so. - richness the second dimension of firm's relationship with customer is concerned with the depth and detail of the two way flow of information between the firm and the customer. helps the firm to establish a competitive advantage in its relationship with customers leads many firms to offer online services in order to better manae information exchanges with their customers. example amazon ad contest - afffliationfacilitationg useful interactions with customers. viewing the world throuh the customer's eyes and constantly seeking ways to create more value for the customer. example msn autos

WHO: DETERMINING THE CUSTOMERS TO SERVE
- DECIDING WHO THE TARGET CUSTOMER IS THATH THE FIRM INTEDS TO SERVE WITH ITS BUSINESS LEVEL STRATEY IS AN IMPORTANT DECISION. COMPANIES DIVIDE CUSTOMERS INTO GROUPS BASED ON THE DIFFERENCES IN THE CUSTOMER'S NEEDS. -MARKET SEGMENTATION IS DIVIDING CUSTOMER INTO GROUPS BASED ON THEIR NEEDS WHICH IS A PROCESS THAT CLUSTERS PEOPLE WITH SIMILAR NEEDS INTO INDIVIDUAL AND IDENTIFUABLE GROUPS. WHAT: DETERMINING WHICH CUSTOMER NEEDS TO SATISFY

- AFTER THE FIRM DECIDES WHO WILL OT SERVE, IT MUST IDENTIFY THE TARGETED CUSTOMER GROUP'S NEEDS THAT ITS GOODS OR SERVICES CAN SATISFY. -NEEDS ARE REALTED TO A PRODUCT'S BENEFITS AND FEATURES.
-HAVIN CLOSE AND FREQUENT INTERACTIONS WITH BOTH CURRENT AND POTENTIAL CUSTOMERS HELPS THE FIRM IDENTIFY THOSE INDIVIDUALS AND GROUP'S CURRENT AND FUTURE NEEDS. -FIRMS THAT FAILS TO ANTICIPATE AND CERTAINLY TO RECOGNIZE CHANGES IN ITS CUSTOMER'S NEEDS MAY LOSE ITS CUSTOMERS TO COMPETITORS WHOSE PRODUCTTS CAN PROVIDE MORE VALUE TO THE FOCAL FIRM'S CUSTOMERS.

HOW: DETERMINING CORE COMPETENCIES NECESSARY TO SATISFY CUSTOMER NEEDS - after deciding who the firm will serve and the specific needs of those customers, the firm is prepared to determine how to use its capabilities and competencies to develop products that can satisfy the needs of its target customers. - CORE...
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