ADMS 1000 Lecture Notes - Lecture 4: Switching Barriers, Swot Analysis, Product Differentiation

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: paulette burgher

Document Summary

Five-forces model: threats of new entrants, can be new firms or diversifying entrants, incumbents must create barriers to entry. Economies of scale: capital requirements, cost disadvantages unrelated to scale. An analysis of the strengths and weaknesses of an organization and of external opportunities and threats it is exposed. The strategic planning team can use this to reexamine the organization"s mission statement to capitalize on opportunities and reduce threats. A strategy a firm uses to compete in a given market. Three business-level strategies: cost leadership, product differentiation and focus. Gain competitive advantages by reducing economic costs requires aggressive construction of efficient-scale facilities. Vigorous pursuit of cost reductions from experience. Cost minimization in the areas like r&d, service, sales, marketing and advertising, tight cost and overhead control general administration and others. Higher margins i. e. obtain abnormal returns in short run. Firms have the flexibility to respond to competitive pressures. Product features; perceived quality; customer service .