Reference
Core competence
“Core competence” in terms of business, refers to “capability (competence)
in areas such as technology or capital
that comprise a company’s core, which
no other company can imitate.” A core
competence is therefore a strength of a
corporation, and also a valuable management resource for differentiating enterprises or products. For rival companies, core competencies are key to the
competitiveness of their business strategy. When a tie-up with another company is formed, it gives the alliance more
influence and leverage.
Reference
Niche strategy
A strategy that aims to secure and
maintain profitability in a specific market
or “niche,” rather than in a market in
which major companies are active.
Reference
CS
Abbreviation for “Customer Satisfaction.”
Reference
Alliance
In general, alliances with capital ties are
described as strong alliances and those
without capital ties are described as
weak alliances.
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Terms related to business strategy
The typical terms used in business strategy are summarized below.
(1)Competitive superiority
“Competitive superiority” is the relative position of a company according to its superiority over rival companies. In modern society where it is
possible to acquire information by all kinds of means, many differentiation
strategies may be imitated by other companies. In order to provide the customer with better value than the competition, it is necessary to develop a
business strategy for competitive superiority through a combination of
multiple factors. These include not only isolated factors such as low prices,
but design, quality, production system, and brand.
(2)Customer satisfaction
“Customer satisfaction,” which is also referred to as “CS,” is the level of
satisfaction a customer experiences after using a product or service and it
meets their expectations. “CS management” is a management technique
that focuses on customer satisfaction.
CS management is based on the idea that creating corporate value from the
perspective of the customer and giving the customer a sense of satisfaction
contributes to corporate management.
In CS management, the demands and opinions of customers are collected
to analyze their needs and behavior. As a result, service that will satisfy the
customers is determined. This information is utilized to expand services
that should be provided and eliminate services that should be scaled down.
CS management starts when a customer selects a product. It aims to raise
corporate value by having the customer choose the corporation’s product
over numerous rival products and make repeat purchases when replacement is necessary. It promotes awareness of customer satisfaction and providing not only product quality, but also follow-up service after sales.
(3)Alliance
An “alliance” is a collaboration or tie-up between corporations. There are
different forms of alliances including those without any capital ties that
come together only in specific fields, and those with capital ties that unite
as “mergers.” In recent years, these collaborations and tie-ups have become popular in many corporations.
The objectives behind this increase in alliances are to eliminate unnecessary corporate competition, and reduce costs such as those in research and
development by sharing the burden between several companies.