MGMT 498 Midterm: MGMT 498 Exam 2 review.docx

• School: University of Kansas
• Department: Management and Leadership
• Course: MGMT 498
• Professor: All

Document Summary

Focus- exploitation of a niche; cost focus; differentiation focus; cost and differentiation focus pitfalls: erosion of cost advantages within a narrow segment; subject to competition from new entrants and imitation; to focused to satisfy customers" needs. Combination-combines low cost and differentiation; harder for rivals to imitate; provides unique value in efficient manner pitfalls: becoming stuck in the middle by doing neither well; underestimating challenges. Introduction-new products unknown to customers; poorly defined market segments; unspecified product features; low sales growth; rapid technological change; operating losses; and a need for financial support. strategies: emphasis on r&d; focus on marketing to enhance product awareness. Maturity-slowing demand for product; saturated markets; direct competition; price competition strategies: emphasis on efficient operations; finance is king; opportunity to reposition products and return them to growth phase. Decline-falling sales and profits; increasing price competition; industry consolidation strategies: (subject to competitors actions to exit or stay in market); maintain; harvest; exit; consolidate.