Chapter 4: competitive advantage Flashcards

1
Q

characteristics of competitive advantage

A
  1. sustainable
  2. competitive
  3. advantageous
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2
Q

operational effectiveness

A

performing the same task as the competitor but better

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3
Q

strategic positioning

A

other tasks than the competitor or the same task in a different way

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4
Q

how to achieve operational effectiveness

A
  1. ensure product quality
  2. optimising production processes
  3. reducing overhead costs
  4. improving the customer experience
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5
Q

fast follower problem

A

when using the successes and failures of other companies to market a comparable or superior product at a lower price

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6
Q

strategic position A

A

performing other tasks than competitors

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7
Q

strategic position B

A

same task in a different way

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8
Q

straddling

A

when a company focuses on multiple strategic positions and it is not possible to obtain the optimal benefit of both positions

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9
Q

resource based view

A

defines resources and possessions that are tied to a specific company in a semi-permanent way (brand name and specialised employees)

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10
Q

VRIN model

A

valuable - rare - imperfectly imitable - non-substitutable

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11
Q

powerful resources

A

help companies recognise strengths and weaknesses so that new strategies can be formed

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12
Q

imitation resistant value chain

A

set of activities that create and deliver consumer value that cannot be imitated

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13
Q

viral marketing

A

when customers themselves start talking positively about a company, giving a company free advertising

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14
Q

scalability

A

for low marginal costs, products and services can reach many customers

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15
Q

network effects

A

created when the value of product or service increases with an increasing number of users

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16
Q

metcalfe’s law

A

the value of communication networks is proportional to the square of the number of connected users –> V~n^2

17
Q

affiliates

A

parties that encourage consumers to make a purchase from a third party and then receive a part of the margin for this

18
Q

patent trolls/ non-practicing entities

A

companies that apply for a patent with the sole purpose of suing a large company once they use the innovation

19
Q

RFID

A

small tags a placed on or with products –> have their own energy source and can therefore send and receive signals

20
Q

NFC

A

tags only send out a signal when they are very close to the reader –> contactless payments

21
Q

long tail

A

many hard to find items to many consumers

22
Q

long-enough tail

A

examines whether you have to keep all products that are made, both high and low quality, in stock or whether there must be a certain limit

23
Q

Supreme Court’s First Sale Doctrine

A

product is protected by copyright if one buys a physical good, with which you can do everything you want, but not copy it

24
Q

bandwith caps

A

maximum for the quantity that a customer can download

25
Q

net neutrality

A

Internet Service Providers cannot distinguish between different types of data or users

26
Q

dataset

A

collection of your data and that of all others to use algorithms to make personalised suggestions

27
Q

collaborative filtering

A

personalised recommendations are based on the crowd with the assumption other people who like this show also look at this show