BUS3 189 Chapter Notes - Chapter 6: Blue Ocean Strategy, Niche Market, Customer Service
Document Summary
Chapter 6 business strategy: differentiation, cost leadership, & blue oceans. Goal-directed actions managers take to gain a comp. What: what is it that the customers want/need that. Necessary bc higher value creation = higher costs. Definition: generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs. Goal is to create same or similar value for customers at a low cost. So not taking away the value of the product, simply just finding ways to lower the cost of the product. The size of the market the firm competes in (narrow or broad) Same as cost-leadership but with a narrow focus on a niche market. Same as differentiation strategy but with a narrow focus on a niche market. Savings from making 2+ outputs @ lower 15190 than making them separately even tho they have the same resources and tech. The more we make, the less it costs to make it.
