BA 411 Study Guide.docx - BA 411 Study Guide Broad...

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BA 411 Study Guide Broad Differentiation- maintains a presence in every segment of the market o Competitive adv is gained by distinguishing products with an excellent design, high awareness, and easy accessibility o Prices are above average o Capacity is expanded with higher demand o Spend aggressively in R&D o Price at premium, high awareness o Grow capacity to demand o Adverse to debt, mainly through stock issues Broad Cost Leader-competing on the basis of price o Keeping R&D, production and raw materials to a minimum o Introduce a new line o Prices lower than average o Significantly increase automation- because of significant funding will operate mainly in traditional and low end segments o No capacity expansions o Long term bond issues Niche Cost Leader- traditional and low end segments o Keeps R&D and production costs to minimum competing on the basis of price o Below average price o Increased automation (post pone for high end and size)
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o Traditional will migrate to the low end o Initially keep in the same range as competitors with marketing but then re-assess and see if we can pull back o Long term bond issues Niche Differentiator- focus on high end performance and size o Distinguish with excellent design, high awareness and easy accessibility and new products o Price above average o Phase out traditional and low end, high technology needs ideal positioning age and reliability o Spend aggressively in promotion and sales technology, price at a premium o Modest increases in automation o Stock issues and cash from operations, adverse to debt
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  • Spring '10
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