In order to meet and exceed customers’ expectations over time, firms must:

A firm uses a corporate-level diversification strategy for a variety of reasons, all of which have to do with ways to create value

In large diversified firms, corporate headquarters distributes capital to its businesses to create value for the overall corporation

Companies in emerging markets frequently use the unrelated diversification strategy because of the absence of a “soft infrastructure” in those markets

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets

Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours

A new generation of lunch trucks in cities such as New York, San Francisco, and Los Angeles is serving high-end fare such as hamburgers made from grass-fed cattle, escargot, and crème brulee, at less expensive prices than sit-down restaurants.  This illustrates a focused differentiation strategy

Changing consumer needs are illustrated by Starbucks’ enabling consumers to have an experience and design their own drinks rather than just a cup of coffee

Two ways that external parties can try to make changes to a firm are by forcing the firm into bankruptcy or changing the top management team

A business model is developed first. Then the firm takes steps to understand customers in terms of who, what, and how in order to develop a business-level strategy