What Is Strategy? Describe the Three Basic Strategies Small Companies

question 46

Essay

What is strategy? Describe the three basic strategies small companies can choose from: cost-leadership, differentiation, and focus. Explain the conditions under which each works, its benefits, and its pitfalls.

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Definitions:

Random Variable

A random variable is a variable whose possible values are numerical outcomes of a random phenomenon.

Success Probability

The likelihood or chance of a particular event or outcome happening, often expressed in terms of percentage or decimal.

Poisson Random Variable

A statistical measure that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events happen with a known constant mean rate and independently of the time since the last event.

Specified Interval

A defined range of values within which a particular parameter or statistic is expected to lie.