Strategic Marketing 2

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1. Michael Porter suggested four basic competitive positioning strategies that companies can follow - three winning strategies and one losing one.10 The three winning strategies include:
2. Firms that do not pursue a clear strategy - middle-of-the-roaders - do the worst. Why?
3. The firm with the largest market share is called:
         
4. Runner-up firms that are fighting hard to increase their market share, are called:
5. Other runner-up firms that want to hold their share without rocking the boat, are called:
6. Firms that serve small segments not being pursued by other firms are called:
         
7. Most standard portfolio-analysis methods evaluate SBUs on two important dimensions:
8. The best-known portfolio-planning method was developed by. . ., a leading management consulting firm.
9. Using the Boston Consulting Group (BCG) approach, a company classifies all its SBUs according to the . . . matrix
         
10. BCG: On the vertical axis, . . . provides a measure of market attractiveness.
11. BCG: On the horizontal axis, . . . serves as a measure of company strength in the market.
12. . . . are high-growth, high-share businesses or products. They often need heavy investment to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
         
13. . . . are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment.
14. . . . are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.
15. . . . are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
         
16. Once it has classified its SBUs, the company must determine what role each will play in the future. One of four strategies can be pursued for each SBU. The company can . . . in the business unit in order to build its share. Or it can invest just enough to hold the SBU’s share at the current level. It can harvest the SBU, milking its short term cash flow regardless of the long-term effect. Finally, the company can divest the SBU by selling it or phasing it out and using the resources elsewhere.
17. Once it has classified its SBUs, the company must determine what role each will play in the future. One of four strategies can be pursued for each SBU. The company can invest more in the business unit in order to build its share. Or it can . . . to hold the SBU’s share at the current level. It can harvest the SBU, milking its short term cash flow regardless of the long-term effect. Finally, the company can divest the SBU by selling it or phasing it out and using the resources elsewhere.
18. Once it has classified its SBUs, the company must determine what role each will play in the future. One of four strategies can be pursued for each SBU. The company can invest more in the business unit in order to build its share. Or it can invest just enough to hold the SBU’s share at the current level. It can . . . the SBU, milking its short term cash flow regardless of the long-term effect. Finally, the company can divest the SBU by selling it or phasing it out and using the resources elsewhere.
         
19. Once it has classified its SBUs, the company must determine what role each will play in the future. One of four strategies can be pursued for each SBU. The company can invest more in the business unit in order to build its share. Or it can invest just enough to hold the SBU’s share at the current level. It can harvest the SBU, milking its short term cash flow regardless of the long-term effect. Finally, the company can . . . the SBU by selling it or phasing it out and using the resources elsewhere.
20. As time passes, SBUs change their positions in the growth-share matrix. Each SBU has a . . .. Many SBUs start out as question marks and move into the star category if they succeed. They later become cash cows as market growth falls, then finally die off or turn into dogs toward the end of their . . ..
21. The company needs to add new products and units continuously so that some of them will become stars and, eventually, cash cows that will help . . . other SBUs.
         
22. Name some problems with the so called Matrix Approaches:
23. According to the product/market expansion grid "Existing Products" for "Existing Markets" is called:
24. According to the product/market expansion grid "New Products" for "Existing Markets" is called:
         
25. According to the product/market expansion grid "Existing Products" for "New Markets" is called:
26. According to the product/market expansion grid "New Products" for "New Markets" is called:

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