ISOM 247 Quiz 1 chpt 2
Terms
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copy deck
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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
- reward customers based on the amount of business they do with a particular
- Loyalty Programs
- 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
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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