BCOR 2304 Final Pt 2

Platform businesses tend to frequently outperform pipeline businesses because of the following advantages

1. Platforms scale more efficiently than pipelines by eliminating gatekeepers 2. Platforms unlock new sources of value creation and supply 3. Platforms benefit from community feedback

Sarbanes-Oxley Act

A law passed by Congress that requires the CEO and CFO to certify that their firm's financial statements are accurate.

patent application

An application that is filed with the U.S. Patent and Trademark Office that must contain a written description of the invention sought to be patented

Platform Business

An enterprise that creates value by matching external producers and consumers in a way that creates value for all participants and that depends on the infrastructure or platform that the enterprise manages

Stuck in the middle

Attempting to simultaneously pursue both a low cost strategy and a differentiation strategy Difficult to achieve low cost with the added costs of differentiation

Blue ocean strategy

Business-level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs.

Strategic trade-offs

Choices between a cost or value position. Such choices are necessary because higher value creation tends to generate higher cost.

licesing

Contractual agreement giving right to others to use intellectual property in return for a royalty or fee

early majority

Customers coming into the market during the shakeout stage, about 34 percent

Trade secret

Protection against other revealing or disclosing information that could be damaging to business

Copyright

Right given to prevent others from printing, copying or publishing any original works of authorship

International patents

The USPTO has established the Office of International Patent Cooperation in order to decrease the uncertainty of IP rights while also reducing costs. Its role is to move toward a much more harmonized patent system

Provisional patent application

The initial application to the US Patent and Trademark Office providing evidence of first to market

Platform ecosystem

The market environment in which all players participate relative to the platform

Trademark

a distinguishing word, name, or symbol used to identify a product

Architectural innovation

a new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets

Disruptive innoivation

an innovation that leverages new technoliges to attack existing markets from the bottom up

intellectual property

any patents, trademarks, copyrights, or trade secrets held by the entrepreneur

crossing the chasm framework

conceptual model that shows how each stage of the industry life cycle is dominated by a different customer group

Early adopters

customers entering the market in the growth stage of the industry life cycle that are eager to buy early into to new technology or product

economies of scale

decreases in cost per unit as output increases

differentitation strategy

generic business strategy that seeks to create higher value for customers than the value that the competitors create, while containing costs

cost-leadership strategy

generic business strategy that seeks to create the same or similar value for customers at a lower cost

patent

grants holder protection from others making, using, or selling a similar idea

Strategy canvas

graphical depiction of a company's relative performance vis-a-vis its competitors across the industry's key success factors

Value curve

horizontal connection of the points of each value on the strategy canvas that helps strategists diagnose and determine courses of action

diseconomies of scale

increases in cost per unit when output increases

Network effects

increases in the value of a product to each user, including existing users, as the total number of users, rises

Contract

legally binding agreement between two parties

Minimum efficient scale (MES)

output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest-cost position that is achievable through economies of scale

Focused cost-leadership strategy

same as the cost-leadership strategy except with a narrow focus on a niche market

focused differentiation strategy

same as the differentiation strategy except with a narrow focus on a niche market

economies of scope

savings that come from producing two (or more) outputs at less cost than producing each output individually, despite using the same resources and technology

Business-level Strategy

the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market

Value innovation

the simultaneous pursuit of differentiation and low cost in a way that creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean strategy

Scope of competition

the size - narrow or broad - of the market in which a firm chooses to compete