Operational Effectiveness
performing the same tasks better than rivals perform them
Strategic positioning
performing different tasks than your rivals, or performing the same tasks in a different way
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Operational Effectiveness - ANSWER- performing the same tasks better than
rivals perform them
Strategic positioning - ANSWER- performing different tasks than your rivals, or
performing the same tasks in a different way
Competitive advantage - ANSWER- The ability for a firm to outperform its
competitors in financial measures
Sustainable competitive advantage - ANSWER- A factor or set of factors can lead
to sustainable advantage if VRIS (valuable, rare, cannot imitate, and hard to
substitute)
Resource Based View of Competitive Advantage - ANSWER- the strategic
thinking, approach suggesting that if a firm is to maintain sustainable competitive
advantage, it must control an exploitable resource, or set of resources, that have
four critical characteristics (VRIS)
Tangible Resources - ANSWER- Factories, products, raw materials
Capabilities - ANSWER- a subset of resources that enable a firm to take full
advantage of other resources
Imitation-resistant value chain - ANSWER- a strategic way of doing business that
is difficult for competitors to replicate
VRIS - ANSWER- Valuable, rare, hard to imitate, hard to substitute
, Switching Costs - ANSWER- the cost a consumer incurs when moving from one
product to another
Differentiation - ANSWER- Be the first one there (first mover advantage versus
fast follower), product differentiation
Vertical differentiation - ANSWER- build a better product; products differ in
quality (Civic vs. Acura)
Horizontal differentiation - ANSWER- Position yourself in "product space" away
from your competitors; used to appeal to distinct group of customers (red vs.
blue cars)
Value chain - ANSWER- the set of activities through which a product or service is
created and delivered to customers
Primary activities of the value chain - ANSWER- Inbound logistics, operations,
outbound logistics, marketing & sales, service
Supporting activities of the value chain - ANSWER- Firm infrastructure, human
resource management, technology development, procurement
Porter's Competitive Forces Model - ANSWER- The intensity or rivalry among
existing competitors, threat of new entrants, bargaining power of customers,
threat of substitutes, bargaining power of suppliers
Long tail - ANSWER- refers to the large number of products available through
conventional retail stores, an extremely large selection of content or products,
firms can make money by offering a near limitless selection
Collaborative filtering - ANSWER- a classification of software that monitors
trends among customers and uses this data to personalize an individual's
customer experience (cinematch)
Churn rate - ANSWER- the rate at which customers leave a product or service
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