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Strategic Management Course Overview and Strategy Concept

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Dem<strong>and</strong> <strong>and</strong>/or value chain differences lead to<br />

cost barriers <strong>and</strong>/or customer value barriers which create a<br />

separate business arena<br />

Low<br />

Cost barriers<br />

© 2007 Prof. Dr. Bernd Venohr<br />

High One<br />

Business<br />

Separate<br />

Business<br />

High Low<br />

Customer value barriers<br />

Source: Bain & Company, Business Definition; Richard Koch, The Financial Times Guide to <strong>Strategy</strong><br />

44

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