chapter 2 quiz

According to Porter, strategy is fundamentally about being _____. efficient scalable profitable superior different

different

the _____ problem exists when rivals watch a pioneer's efforts, learn from their successes and missteps and enter the market quickly with comparable or superior product at a lower cost early starter fast follower intellectual property first mover late entrant

fast follower

which of the following is a source of bargaining power of buyers network effects high switching costs unique and highly differentiated products greater choice of products loyalty programs

greater choice of products

______ law is said to be at play when the value of a product or service increases as its number of users expands metcalfe moores turing amdahls zuckerburg

metcalfe

operational effectiveness refers to the implementation of technology is a business context preforming different task or the same tasks in different ways matching the benefits of a successful position while maintaining an existing position performing the same tasks better than rivals perform them

performing the same tasks better than rivals perform them

consumers buying commodities are highly _____ since they have so many similar choices quality-conscious technology discriminating price-focused loyal brand driven

price-focused

benefits relate to a firms size are referred to as scale advantages brand recall disintermediation network effects vertical integration

scale advantages

A firm is said to be _____ when it attempts to match the benefits of a successful position while maintaining its existing position. streamlining dovetailing straddling vertically integrating switching

straddling

A firm's financial performance that consistently outperforms its industry's peers is known as _____. absolute advantage sustainable competitive advantage comparative advantage first mover advantage operational efficiency advantage

sustainable competitive advantage

If a new entrant hopes to attract customers from an established incumbent, the new entrant must ensure that the value they offer exceeds the incumbents' value in addition to any perceived _____. scale advantages market depreciation advertising expenses switching costs brand benefits

switching costs

_______ exist when customers incur an expense to move from one product or service to another economies of scale network effects switching costs profit margins competitive advantages

switching costs

which of the following is one of Porter's five forces? threat of new entrants availability of competitors in the market total cost of ownership purchasing power of customers strength of intellectual property laws

threat of new entrants

Commodities are products or services that vary across multiple vendors. (t or f)

true

Many firms choose not to implement operational components of ERP software and instead elect to create their own propriety solutions in part because they see their uniqueness in certain operations areas as key to creating difficult-to-imitate competitive advantages. (t or f)

true

ciscos acquisition pf pure digital, makers of the flip video camera line, was largely considered a flop because comparable technology soon became a feature in other popular consumer electronics products (t or f)

true

the set of activities through which a product or service is created and delivered to customers is known as value chain strategic plan inventory turnover pure play marketing plan

value chain

How did Apple trump Google to become the dominant mapping platform on iOS? A. Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement. B. Apple sued Google for copyright infringement related to the look and feel of Apple Maps. C. Apple sued Google for privacy violations related to the collection of map data. D. Apple hasn't trumped Google Maps. Google's Map app is used by the majority of iOS customers, whereas most users ignore Apple Maps.

A. Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement.

Businesses benefit from economies of scale when the cost of an investment can be: A. spread across increasing units of production. B. used in serving a niche and loyal customer base. C. used to build a brand image for products through advertising. D. leveraged to recruit consumers to promote a product or service. E. diverted to implementing technology upgrades in the business model.

A. spread across increasing units of production.

an ____ is the symbolic embodiment of all the information connected with a product or service trademark copyright patent brand ad

brand

moving first pays off when the time lead is used to create operational effectiveness to harness maximum profitability market entry to ensure sustainable competitive advantage critical resources for competitive advantage the latest technology at a firms production plant high stock value to generate funds for expansion

critical resources for competitive advantage