BUS 448 Study Guide - Quiz Guide: Brand Equity, Strategic Thinking, Resource-Based View

• School: Stony Brook University
• Department: Business Management
• Course: BUS 448
• Professor: Stacey Finkelstein

Document Summary

Evolution of views on assessing the company"s sources of competitive advantage. The resource based view of the firm (1990s) Star product - products that might be relatively new in the market; takes a lot of cash to gain consumer interest. According to the bcg matrix, we should keep investing in it and it should become a cash cow. Cash cows are where companies tend to make the most profit because of the low amount of cash needed to maintain their place in the market. Problem child - if we invest in it, it could become a star product; if we don"t invest in it, it could become a dog. Dog - low market share and growth and little cash spending; divest because it is not valuable to invest in. No relationship between market share and return of investment (roi) External focus: structure of the industry determines competition which in turn determines best practice.