Chapter 4: competitive advantage Flashcards Preview

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Flashcards in Chapter 4: competitive advantage Deck (27)
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1

characteristics of competitive advantage

1. sustainable
2. competitive
3. advantageous

2

operational effectiveness

performing the same task as the competitor but better

3

strategic positioning

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

4

how to achieve operational effectiveness

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

5

fast follower problem

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

6

strategic position A

performing other tasks than competitors

7

strategic position B

same task in a different way

8

straddling

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

9

resource based view

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

10

VRIN model

valuable - rare - imperfectly imitable - non-substitutable

11

powerful resources

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

12

imitation resistant value chain

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

13

viral marketing

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

14

scalability

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

15

network effects

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

16

metcalfe's law

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

17

affiliates

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

18

patent trolls/ non-practicing entities

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

19

RFID

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

20

NFC

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

21

long tail

many hard to find items to many consumers

22

long-enough tail

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

Supreme Court's First Sale Doctrine

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

24

bandwith caps

maximum for the quantity that a customer can download

25

net neutrality

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

26

dataset

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

27

collaborative filtering

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