The Business Professor
Loss Leader - Strategy
A loss leader strategy prices a product lower than its production cost in order to attract customers or sell other, more expensive products. Loss leading is a controversial strategy that is considered predatory. Some companies use a loss...
The Business Professor
Long Tail Strategy
The long tail is a business strategy that allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The...
The Business Professor
Lean Strategy
Lean strategies seek to enhance the technical efficiency of a firm, methodologies, and processes. Lean firms reduce wasted time, human resources, and space.
The Business Professor
Internationalization Strategy
By definition, an international strategy is a strategy through which the firm sells its goods or services outside its domestic market.
The Business Professor
Internal and External Factor Evaluation Matrix
The IFE is focused on the internal dimension of the organization by looking at the strengths and weaknesses. While the EFE is concerned with the external factors by focusing on the opportunities and threats the organization is exposed to.
The Business Professor
Intended, Realized, Emergent, and Deliberate Strategy
A realized strategy is the strategy that an organization actually follows. Realized strategies are a product of a firm’s intended strategy (i.e., what the firm planned to do), the firm’s deliberate strategy (i.e., the parts of the...
The Business Professor
Institutional Isomorphism
There are three main types of institutional isomorphism: normative, coercive and mimetic.
The Business Professor
Innovation Strategy
An innovative strategy guides decisions on how resources are to be used to meet a business's objectives for innovation, deliver value and build competitive advantage. Strategies should include: an analysis of a business's competitive and...
The Business Professor
Horizontal Integration Strategy
Horizontal integration occurs when a company acquires a competitor or related business, expanding its footprint in its core competency. The main purpose of horizontal integration is typically a strategic aim to expand within a specific...
The Business Professor
Hedgehog Concept
The Hedgehog Concept calls on companies to identify their core value proposition (or the primary thing that they do well) and focus on that.
The Business Professor
Growth-Based Strategy
A growth strategy is an organization's plan for overcoming current and future challenges to realize its goals for expansion. Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving...
The Business Professor
GE McKinsey Matrix
McKinsey's GE Matrix is a visual tool designed to help portfolio managers determine resource allocation for multi-business portfolios.
The Business Professor
GAP Analysis
A gap analysis is the process that companies use to compare their current performance with their desired, expected performance. This analysis is used to determine whether a company is meeting expectations and using its resources...
The Business Professor
Functional Strategy
Functional level strategies are those put in place at the operational level of an organization and will facilitate the corporate (or business)
The Business Professor
First Mover Advantage
In marketing strategy, first-mover advantage is the competitive advantage gained by the initial significant occupant of a market segment.
The Business Professor
Ethics in Negotiations
Negotiations should be conducted in a way that is fair to both parties and takes into account the interests and limitations of each side. This means avoiding tactics that are designed to take advantage of the other party or unfairly...
The Business Professor
Environmental School of Strategy
The environmental school of strategy views the environment as the main factor influencing the strategy process. It sets the direction for an otherwise passive organization. Strategic choice is limited by the environment.
The Business Professor
Eclectic Implementation Model
An eclectic paradigm is a theory based on a three-tiered framework that companies follow to determine if a direct foreign investment would be beneficial.
The Business Professor
Disintermediation
Disintermediation is the removal of intermediaries in economics from a supply chain, or "cutting out the middlemen" in connection with a transaction or a series of transactions.
The Business Professor
Differentiation Strategy
Your differentiation strategy is the way in which you make your firm stand out from otherwise similar competitors in the marketplace.
The Business Professor
Developing a Strategic Plan
Strategic Planning is a process where organizations define a bold vision and create a plan with objectives and goals to reach that future.
The Business Professor
Customer Centric Strategy
A customer-centric sales strategy focuses first on understanding the issue, then on helping to solve it with the most appropriate solution.
The Business Professor
Cultural School of Strategy
The Cultural School of Strategic Formulation assumes that culture has important influence on strategy and that strategies are most likely to succeed when aligned with organizational culture. The school introduces ideas of collective...
The Business Professor
Cost Strategy (Low Cost Production)
Low-cost strategy enables the firm to sell its product/service with a lower price compared to its competitors because of lower costs of producing products/service; as a result of this, they win a competitive advantage in the industry.