Exam 2: Strategic Planning for Competitive Advantage

Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market.The market for vaccines is growing 20% or more in developing nations of Asia,Africa,and Australasia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather to expand Tianyuan's product offering -Refer to Novartis.If Novartis goes through with the purchase of Tianyuan,it will become a subgroup of its overall pharmaceutical business and organization.Tianyuan will then be considered a(n)_____ of Novartis.

An advantage that cannot be copied by the competition is called a(n)_____ competitive advantage.

In theory,an SBU should have its own resources for handling basic business functions.

Market penetration occurs when:

DeFeet International started as a cyclist sock company.The founder,Shane Cooper,said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out.The socks were of special materials aimed at giving the cyclist the most comfortable fit.These socks were not the traditional white socks but bright,bold,and flashy colored socks with cool graphics.These high tech socks were priced around $10 a pair.Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand.The company branched into running,hiking and snow gear.Their products include socks,armskins,calfskins,boxer briefs,gloves,and shirts for the serious athlete.They also have a custom department where socks,armskins,and gloves can be customized with any motif including sponsor types of logos like Michelin,Pabst Blue Ribbon,or BP.Even kids can enjoy DeFeet's high quality socks.DeFeet's products can be found in retailers across the world,in more than twenty countries,like Israel,Australia,Belgium and the United States.More than two-dozen online retailers also carry their products. -Refer to DeFeet International.What is DeFeet's most likely target market strategy?

_____ is defined as the collection and interpretation of information about forces,events,and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Subway's ability to market itself as a "healthy" alternative to traditional fast food offerings most directly affected the _____ element of the company's marketing mix.

What is the most critical element in successful strategic planning?

The most critical element for successful strategic planning is top management's support and participation.

When properly created,an SBU has all of the following characteristics EXCEPT:

Which of the marketing mix elements is often the most flexible?

Before Heinz sold its 9-Lives brand cat food unit,the company identified the product as having a low market share in a high-growth market.The portfolio model would classify 9-Lives as a(n):

GEICO Insurance ads often focus on its reptilian mascot,the GEICO Gecko,who is used to remind consumers of the company and its benefits.Which of the four Ps does the GEICO Gecko represent?

_____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.

_____ is a strategy of increasing market share for present products in existing markets.

In 2011,Diamond Foods,Inc.purchased Pringles from Procter & Gamble.The decision to purchase Pringles represented a(n)_____ to Diamond Foods.

LaRosa's is a popular and successful Italian restaurant chain located in the Cincinnati,Ohio area.It is found only in the "tri-state area" of southwestern Ohio,northern Kentucky,and southeastern Indiana.For over 50 years,this strategy has given the restaurant a:

A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.

Developing a cost competitive advantage can enable a firm to deliver superior customer value.

Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market.The market for vaccines is growing 20% or more in developing nations of Asia,Africa,and Australasia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather to expand Tianyuan's product offering -Refer to Novartis.By acquiring Tianyuan,Novartis will be offering vaccines,which is a product that it currently offers in its existing markets,to new markets for the company.This is an example of which strategic alternative?