Unit 2 Vocabulary Part 1

The strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.

• Competitive Advantage

• Customer Orientation Strategy

• Cost Leadership Strategy

• Functional Strategies

is a critical factor in a consumer ‘s selection of a store

• Operational Effectiveness

• Differentiation Strategy

• Location

• Unique Merchandise

Customers must be committed to buying merchandise and services from a particular retailer.

• Location

• Strategic Business Units

• Customer Orientation Strategy

• Customer Loyalty

is extremely expensive and timely.

• Vendor Relations

• Strategic Business Units

• Location

• Distribution & Information Systems

The goal of cost leadership strategy is to produce products and services at the lowest cost in the industry.

• Customer Loyalty

• Customer Orientation Strategy

• Cost Leadership Strategy

• Customer Service

Private label brands are products developed and marketed by a retailer and available only from the retailer.

• Vendor Relations

• Unique Merchandise

• Differentiation Strategy

• Innovation Strategy

Developing strong relations with vendors may gain exclusive rights to sell merchandise to a specific region and receive popular merchandise in short supply

• Vendor Relations

• Superior Performance

• Functional Strategies

• Differentiation Strategy

The final balance; the amount of money or profit left after everything has been tallied.

• Competitive Advantage

• Unique Merchandise

• Bottom Line

• Vendor Relations

This takes time to establish but once it’s established, it will be hard for a competitor to develop a comparable Reputation.

• Customer Orientation Strategy

• Customer Service

• Customer Loyalty

• Marketing Channels

Companies that rely on innovative competitive strategies provide new and different products/services via added features, and new methods of production.

• Innovation Strategy

• Multiple Source Advantage

• Differentiation Strategy

• Operational Effectiveness