Fundamentals of Management, 8th ed

organizational

weakness

A skill or capability

that does not enable

an organization to

choose and

implement strategies

that support its

mission

organizational

opportunity

An area in the

environment that, if

exploited, may

generate higher

performance

organizational

threat

An area that

increases the

difficulty of an

organization

performing at a

high level

differentiation

strategy

A strategy in which

an organization

seeks to distinguish

itself from

competitors through

the quality of its

products or services

74

Part 2: Planning

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economic recession, most youth-oriented retailers such as American Eagle Outfitters,

Quiksilver, and Aéropostale slashed prices to generate sales. But Abercrombie & Fitch

decided to hold firm to standard pricing in an attempt to maintain a differentiated

image for its products.

18

Similarly, other firms tried to provide strong differentiation on

the basis of outstanding customer service.

19

An organization implementing an