HW 3-5

How is scale important to Netflix's streaming business? A larger firm with more customers can spend more on content licenses. Netflix can continue to expand its network of nationwide distribution centers to overseas locations. It will allow the firm to lower scale economies, which will also improve profitability The firm can hire its own delivery drivers so it doesn't have to rely on the postal service.

A larger firm with more customers can spend more on content licenses.

Which external factor might affect the success of an online grocery store? location customer buy-in grocery alternatives A & B A & C All of the above.

All of the above.

Netflix conducted a coding contest to improve ________, their collaborative filtering engine.

Cinematch

Netflix conducted a coding contest to improve _________, their collaborative filtering engine.

Cinematch

Identify each statement as true or false concerning Netflix's early relationship with industry analysts. The firm's chief executive, Reed Hastings, was uniformly praised for the company's flawless growth The firm's cozy relationship with analysts led to an SEC investigation. It was quite friendly since Hastings had previously worked as an analyst himself Many analysts doubted the firm would succeed when confronted by increased competition from well-known rivals

false false false true

Costs that do not vary according to production volume are called _____. marginal costs switching costs fixed costs total costs

fixed costs

Which statements are true about why Zara offers limited runs of products? It reduces the impact of "guessing wrong" Customers are more likely to receive a unique design from their Zara purchase than at rival retailers It increases the likelihood customers will buy products right away and at full price It allows the firm to capitalize on its massive global advertising budget.

True True True False

Zara's production costs could fluctuate at higher rates than its competitors because many of the firm's costs are tied to the _____. euro pound franc dollar

euro

Zara is susceptible to any disruption in northern Spain because: it moves all of its deliveries through just two locations, both in Spain. Zara's production facilities in Asia and Central America are threatening employment in Spain. it conducts its trade operations based on the American dollar rather than the stronger euro. most of Zara's products are sold in markets outside Spain and Europe.

it moves all of its deliveries through just two locations, both in Spain.

Zara holds a competitive advantage over its rivals in spite of: conducting business only through online storefronts. keeping large portions of its production processes in-house. its globally distributed contract manufacturing model. refusing to implement technology in its operational model.

keeping large portions of its production processes in-house.

Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over traditional video stores? larger entertainment selection lower shipping expenses higher energy costs higher churn rates higher technology overhead​

larger entertainment selection

Which primary reasons caused New York based consumers to be receptive to FreshDirect's online grocery model? specialty items and bulk offerings loyalty programs and weekly sales location and low selection lower cost and larger selection

lower cost and larger selection

Netflix uses ______, a type of artificial intelligence which leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming. codec machine learning A/B test data warehouses

machine learning

FreshDirect gives suppliers the opportunity to offer_______ shelf-constrained grocers.

more products than

Identify the following as being an advantage or not being an advantage of RFID systems used by Zara. can eliminate the need for PoS systems can reduce the time needed to take store inventory can help find a product a customer wants that isn't available in the store can lower advertising costs

not an advantage an advantage an advantage not an advantage

The long tail is a phenomenon whereby firms can make money by: selling the same product at different prices with only minor tweaks in their design. reselling multiple versions of a single product under different brand names. leveraging customers to promote their products or services. selling the same product to virtually every customer the Internet can reach. offering a selection of products or services vastly greater than conventional retailers.

offering a selection of products or services vastly greater than conventional retailers.

Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that internet businesses are more _____. capitalized scalable horizontally integrated churn-prone asymptotic

scalable

For traditional retailers selling physical goods, _____ is the biggest constraint limiting a firm's ability to offer customers what they want and when they want it. shipping costs disintermediation distribution rights shelf space customer acquisition

shelf space

Identify each statement as true or false concerning potential advantages for Netflix owning its own original content. It would eliminate the need to negotiate separate agreements to stream these titles worldwide. It would provide a differentiated good, potentially unavailable to rivals. It would catalyze the firm's efforts to provide a branded set-top box and streaming stick line it is easier to capture data from streaming its own content vs. acquiring data from content that it streams to consumers via licensing agreements

true true false false

Identify which of the following statements are true or false. FreshDirect is able to cut costs and offer fresher food through a tech-enabled supply chain by turning inventory over faster than traditional grocers reducing labor costs. reducing food waste. stocking only non-perishable items.

true true true false

By going public, Netflix encountered competition from the large, established firms Walmart and Blockbuster. What aspect of Netflix going public lured these firms into the market? Netflix's plan to enter the online movie streaming market alerted rivals to the possibility of losing their market share. The migration of Netflix services to cover the Blu-ray disc market opened up opportunities for rivals. Netflix's model of per-disc rental fee was found to be more profitable than a flat-rate monthly subscription. By going public, Netflix was forced to reveal the Cinematch algorithm used to classify user ratings. By going public, Netflix was required to disclose its financial position.

By going public, Netflix was required to disclose its financial position.

Identify each statement as true or false concerning why HBO is considered a worthy rival to Netflix. HBO's ownership of a major cinema chain gives it access to first-run films. HBO has greater international reach than Reed Hasting's firm. HBO is owned by Verizon, allowing it to be easily bundled with pay television and mobile phone services HBO has sole-ownership of high-demand, original content.

False False False True

A new rival in the online grocery business might face barriers competing with FreshDirect because FreshDirect customers want to avoid switching costs. customers will choose FreshDirect based on brand asset. FreshDirect has a proprietary customer profiling package. FreshDirect's data, collected from individual customers over time, creates a strong competitive advantage.

FreshDirect's data, collected from individual customers over time, creates a strong competitive advantage.

Which statement is true of Netflix? It has had to craft different kinds of competitive advantages to maintain its spot as the world's largest streaming service. Its business model has stayed the same despite facing significant challenges and technical shifts. It is the least expensive streaming service available. It was able to transition smoothly from a DVD-by-mail service to a video streaming service.

It has had to craft different kinds of competitive advantages to maintain its spot as the world's largest streaming service.

Which of the following describes why Zara has been successful at implementing RFID technology, unlike some other major retailers? Zara uses RFID technology that can be repurposed. Zara employees add RFID tags to inventory before stocking store shelves. Zara uses third party suppliers to affix RFID tags to their inventory. Zara's vertical integration gives them direct access to inventory in their warehouses to add RFID tags.

Zara's vertical integration gives them direct access to inventory in their warehouses to add RFID tags.

FreshDirect monitors website and app use to provide customers fast delivery. a personalized experience. cheap products. a steady, consistent experience.

a personalized experience.

Which factors led to Netflix dominance versus Blockbuster and Walmart? advantages created from being a fast follower advantages gained through low-cost kiosk distribution from its Redbox subsidiary advantages created through operational effectiveness advantages created by leveraging technology and timing

advantages created by leveraging technology and timing

A manager's decision making is often shaped by their perception of the competition. Which of the following does Netflix see as being in competition with the firm? all of the available options are true magazines video games Amazon Prime DVD rental

all of the available options are true

Select all that apply. Early attempts at the online grocery business were unsuccessful because customers were unwilling to allow others to select their produce. conventional grocery stores had larger selections than online grocers. most customers were fine with the traditional way of shopping. customers enjoyed the benefit of going to the grocery store and shopping on their own schedule.

customers were unwilling to allow others to select their produce. most customers were fine with the traditional way of shopping. customers enjoyed the benefit of going to the grocery store and shopping on their own schedule.

Fresh Direct's business model helped them outperform traditional rivals because they leveraged the power of location. delivery systems. brand. data.

data

An online grocery start-up specializing in fresh produce is searching for a warehouse location and service area. They must factor in product-market fit when selecting the location for the distribution warehouse and customer service area. As a member of the strategy team, which location would you recommend? rural area with small grocers and farmers densely populated city with few grocery stores sparsely populated city with several grocery stores suburban area with several grocery stores

densely populated city with few grocery stores

Today Netflix is primarily focused on _____________, the default option for consumers pushing DVD rentals special promotions none of the available options are true rating content digital distribution

digital distribution

Zara's model has evolved to support this type of commerce, adding 52 special stockrooms globally. logistic commerce brick-and-mortar commerce e-commerce exclusive commerce

e-commerce

Which three-tier model is used by FreshDirect? from farm or sea to our house to your house from farm to supplier to grocery store from grocery store to our house to your house from supplier to warehouse to your house

from farm or sea to our house to your house

Personal digital assistants are: small chip-based tags that wirelessly emit a unique identifying code for the item that they are attached. handheld computing devices meant largely for mobile use outside an office setting. transaction processing systems that capture customer purchases. systems that provide rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity.

handheld computing devices meant largely for mobile use outside an office setting.

Zara's staff members regularly collect data from customers at Zara stores. This data is used to: determine where future Zara stores should be located. identify the products that customers would like to buy through discounted sales. decide the designs and styles of Zara's products for the next few seasons. inform designers on customer preferences and staff on store sales results.

inform designers on customer preferences and staff on store sales results.

Crowdsourcing is: an industry practice whereby content is available to a given distribution channel for a specified time period or 'window,' usually under a different revenue model. finding a way to acquire more content for consumers. a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience. a phenomenon whereby firms can make money by offering a near-limitless selection. the act of taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call.

the act of taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call.

When Blockbuster and Walmart added collaborative filtering to their DVD services, the percentage of consumers who left Netflix the following year decreased. This form of attrition is known as _______. the churn rate the long tail collaborative filtering the penetration rate

the churn rate

Identify each statement as true or false concerning the data Netflix can collect via streaming vs. data acquired from its DVD-by-mail business. Data allows for greater customization of titles and the types of content promotions offered to streaming customers Streaming provides more accuracy, since Netflix gains insight based on the length and frequency titles are watched by a given user. DVD-by-mail was more accurate since users were forced to rate all titles. Netflix data advantage is much less than rivals, since anyway can collect data on streaming media

true true false false

In an industry where nearly every major player outsources manufacturing to low-cost countries, Zara is highly _____, keeping huge swaths of its production process in-house subsidized publicly traded vertically integrated autonomous

vertically integrated