33:620:301 Study Guide - Midterm Guide: Profit Margin, Emerging Markets
4 Aug 2016
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Strategy a company"s action plan for outperforming its competitors and achieving superior profitability. Strategy towards rivals all about competing differently than rivals; doing what they can or don"t do and doing it better. Competitive advantage meeting customers needs more efficiently with products or services customers value more highly, or more efficiently, at lower cost. Sustainable competitive advantage giving buyers lasting reasons to prefer a firm"s product or service over competitor. A company"s business model one that yields appealing profitability to demonstrate the viability of a firm"s strategy. Customer value proposition satisfying buyer wants and needs at a price customers will consider a good value (the greater the value and lower the price, the more attractive to customers) Profit formula creating a cost structure that allows for acceptable profits, given that pricing is ties to the customer value proposition (the lower the firm"s costs, the greater ability for the firm to make money)
