ECON344 Lecture Notes - Lecture 2: Market Segmentation, Competitive Advantage, Strategic Management
4 Oct 2017
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Pg. 6 kinds of organizations: business firm and non-profit organizations. Pg. 7 what is strategy: an organization"s long-term course of action to deliver a unique customer experience (currently 1-3 years is considered long term, tactics: short term plans. Pg. 12 organizational direction: what will it do: goals: (smart) specific, measurable, attainable, relevant, time based (short/long term, variation by level: corporate to sbu to functional, variation by offering: type of offering the firm has. Loyal customers are demanding more: it costs a lot more to acquire a new customer (-) than retain an existing one (= ) based on marketing, incentives, etc. Pg. 15 organizational strategy: where are we now: competencies: special capabilities that distinguish it from others (competitors can"t compete this away) Competitive advantage: something that is done better than the competition. Benchmarking: setting the standard (if leader), the minimal quality standards (if follower) Government mandate: laws for quality standards that don"t have the flexibility an industry association would.
