Competitive Advantage Flashcards
Loyalty programs
Rewards customers based on the amount of business they do with a particular organization
Porters five forces
- Buying power: high when buyers have many choices of whom to buy from and low when their choices are few
- Threat of new entrants: 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 substitutes: high when there are many alternatives to a product or service and low when there are few alternatives from which to choose
- Supplier Power: high when buyers have few choices of whom to buy from and low when their choices are many
- Rivalry amount Existing Competitors: high when competition is fierce in a market and low when competition is more complacent
Product differentiation
A advantage that occurs when a company develops unique differences in its product with the intent to influence demand
Supply Chain
Consists of all parties involved in the procurement of a raw product or raw material
Switching costs
Costs that can make customers reluctant to switch to another product or service
Value chain
Primary activities: firm infrastructure, human resource management, techn. development, procurement
Support Activities: receive and store, make, deliver, market and sell, and service it
Generic strategies
Cost leadership, differentiation, focused strategy.
Low cost and broad market: Walmart
Low cost and narrow market: Payless shoes
High cost and broad market: Saks Fifth
High cost and narrow market: Tiffany’s and Co
Arithmetic logic unit (ALU)
Performs all arithmetic operations and all logic operations (sorting and comparing numbers)
Cache memory
A small unit of ultra fast memory that is used to store recently accessed or frequently accessed data so that the CPU does not have to retrieve this data from slower memory circuits such as RAM
Compact disk read only memory (cd-rom)
An optical drive designed to read the data encoded n CD-ROMS and to transfer this data to a computer
Clock speed
The speed of the internal clock of a CPU that sets the pace at which operations proceed within the computers internal processing circuitry. Clock speed is measured in megahertz and gigahertz. fast clock speeds bring noticeable gains in microprocessor intensive tasks
Central processing unit (CPU)
The actual hardware that interprets and executes the program instructions and coordinates how all the other hardware devices work together
CPU cores
The more cores the faster the computer runs
Digital video disk (DVD)
A CD-ROM format capable of storing up to a maximum of 17 GB of data; enough for a full length featured movie
