Chapter 2 - IS290
Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?
Game systems like Wii and social networks like Facebook.
Which of the following is included in Porter's Five Forces Model?
The Power of Competitors
What is one of the most common ways a company can decrease supplier power?
Use MIS to find and create alternative products.
The banking industry has implemented several competitive advantages, including ATMs, online bill-pay services, and electronic statements. Of course, these competitive advantages were quickly duplicated by any competitor that wanted to remain in the banking industry. These are examples of ___________.
acquiring new technology products and services
What is a standardized set of activities that accomplishes a specific task?
business process
Greg Provenzo owns and runs a Blockbuster video store. Greg is implementing a drive-thru rental process that is the same as you would find at a fast-food restaurant. Customers can pick up and drop off their videos without leaving their cars. Greg's new system has become so popular that Videos Plus, a competitor down the street, is attempting to re-create Greg's video drive-thru rental process. Greg's system is an example of a _________.
first-mover advantage
When buyer power is low, supplier power is typically _________.
high
Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a differentiation strategy?
British Airways, Singapore Airlines, and Virgin Atlantic.
Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Sandy determines that the best value she can add is by creating a service that offers free next-day shipping on any order over $50. Where in the value chain is Sandy adding value?
The primary value activity outbound logistics.
Paula Logston is the owner and operator of a high-end online custom clothing company. Paula has never heard of Porter's Five Forces Model, and she wants to understand why she should perform an analysis using it. If you were tasked with explaining Porter's Five Forces Model to Paula, what would be the primary reason she would want to use this type of analysis?
To help Paula evaluate the attractiveness of the clothing industry.
Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents buyer power in the music industry?
Walmart, Target, Itunes
According to Porter's value chain analysis, which of the following provides customer support after the sale of goods and services?
service
Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?
supplier cost differentiation
Shawn McGill is on the executive board for ABC Pharmaceuticals. The company produces the number-one-selling cancer-fighting drug on the market. Due to its incredible success, ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which force is ABC Pharmaceuticals using to increase its drug price?
supplier power
___________ make customers reluctant to switch to another product or service.
switching costs
