Backward vertical integration is a strategic process where a firm takes ownership or increased control of its supply systems, aiming to streamline operations, better control costs, and eliminate intermediaries, thereby enhancing competitiveness in the marketplace.
A brand manager, also known as a product manager, is responsible for marketing and making key advertising decisions for a specific brand within a company.
A competitive strategy is a plan formulated by an organization to gain a competitive edge over its rivals. In the context of advertising, it may include tactics designed to discredit rival brands, undercut prices, or highlight unique product qualities and consumer benefits not found in competitors' offerings.
An increase in the sales capabilities of a company, often necessary to meet new competitive demands or to open new markets. Expansion can also be the result of high profits, which provide the capital base for increasing the size of the business.
The process of two or more participants attempting to reach conflicting objectives or goals. The process of bidding for contracts is a game. Logically, each participant would bid estimated costs plus some amount for profit. Since only one contract would be awarded, the outcome depends jointly on the actions of all bidders.
Horizontal integration refers to the strategy where a company acquires, merges, or takes over another company operating at the same level of the value chain in the same industry. The primary aim is to reduce competition, increase market share, and achieve economies of scale.
Industry structure analysis involves evaluating the opportunities and threats presented to a firm by the prevailing environment. It helps appraise the attractiveness of the industry to investors or new entrants and devise competitive strategies. Porter’s Five Forces framework is the standard tool for this analysis.
Porter's Five Forces is a powerful framework for analyzing the competitive forces that shape every industry, and it helps determine an industry's weaknesses and strengths. Developed by Michael E. Porter, it provides insights into the five forces that drive competition within an industry and influence its overall profitability.
A price war occurs when competing companies reduce their prices in a bid to attract customers, often leading to reduced profits and potentially driving some businesses out of the market.
Two-Tier Wage Plans involve union wage concessions that allow new employees to be paid a lower rate than veteran employees, aiming to enable companies to compete more effectively.
