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Glossary of ISOM 247 Quiz 1 chpt 2

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Created by ddeetz

product or service that an organization's customers value more highly than similar offerings from a competitor

typically temporary since other firms are quick to copy

Competitive Advantage
when a firm can impact its market share by being first to market, with a competitve advantage
first mover advantage
high when buyers have many choices of whom to buy from and low when their choices are few

Buyer Power
reward customers based on the amount of business they do with a particular
Loyalty Programs
high when buyers have few choices of whom to buy from (e.g. Microsoft Office, telecom in some countries, etc.) and low when their choices are many
supplier power
consists of all parties involved, directly or indirectly, in the procurement of a product or raw material
supply chain
a single buyer posts its needs and then opens the bidding (often via reverse auction system) to any supplier who would care to bid
Private Exchange
an Internet-based service which brings together many buyers and sellers
B2B Marketplace
high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market
Threat of New Entrants
a product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
barriers to entry
high when there are many alternatives to a product or service and low when there are few alternatives from which to choose
threat of substitute products
costs that can make customers reluctant to switch to another product or service
switching costs
high when competition is fierce in a market and low when competition is more complacent
Rivalry against competitors
strategy example

(e.g. Hyundai – affordable)

broad cost leadership
strategy example:

Volvo - safety

broad differentiaton
strategy example:

- (e.g. Suzuki – low cost low end

targets a niche market by,
for example, concentrating on
cost leadership

strategy example:

e.g. Hummer – mega SUVs

targets
a niche market by,
for example, concentrating on differentiaton

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