ENT_L4 Flashcards
(31 cards)
Name the Porter’s Five Forces of competition.
- Bargaining power of customers
- Rivalry among existing firms
- Bargaining power of suppliers
- Threat of new entrants
- Threat of substitute products or services
State Porter’s generic strategies for gaining competitive advantage.
- Cost Leadership (no frills)
- Differentiation
- Focus (split into Cost Focus and Differentiation Focus)
Explain the two main ways a firm achieves Cost Leadership.
- Increase profits by reducing costs while charging industry‑average prices.
- Increase market share by charging lower prices while maintaining a reasonable profit through cost reduction.
List key drivers that support a Cost Leadership strategy.
- Access to capital for cost‑reducing technology
- Very efficient logistics
- A low‑cost base in labour, materials and facilities that is sustainably lower than competitors’
Define the Differentiation strategy.
Making products or services different and more attractive than competitors’ offerings.
List typical means of achieving Differentiation valued by customers.
- Features and functionality
- Durability
- Customer support
- Strong brand image
What three elements constitute Customer Intimacy?
- Redefining the customer relationship – walking with the customer through the product life‑cycle
- Horizontal breadth – the widest possible range at the lowest price
- Customer integration – crowd‑sourcing that raises switching costs
Identify the three overarching positions in Hax’s Competitive Tool Set.
- Best Product
- Total Customer Solutions
- System Lock‑In
Provide a company example for Low Cost / Operational Excellence.
- Ryanair
Provide a company example for Product Leadership / Differentiation.
- Sony
Provide a company example for Customer Integration / Co‑creation.
- LEGO
Provide company examples illustrating Network Externalities.
- Amazon
- Apple
List the key mechanisms of lock‑in.
- Technological integration
- Consumable dependency
- Network effects
- Contractual obligations
- Data personalisation
Give an example of Consumable Dependency lock‑in.
- Nespresso machines require proprietary capsules.
Give an example of Bundled Benefits lock‑in.
- Amazon Prime bundles shipping, streaming and deals.
What are the different forms of Intellectual Property Rights noted in the lecture?
- Copyright
- Patent right
- Trademarks
- Designs and models
- Breeding rights
- Chips
State four key aspects of Copyright protection.
- Protects original literary, dramatic, artistic and other works (including software)
- Arises automatically – free of charge
- Guards against copying, adaptation or public disclosure
- Requires good records of creation date and author
What is the duration of Copyright protection for an authored work?
- 70 years from the end of the year in which the author died
Distinguish material and moral rights in copyright.
- Material right – transferable economic rights (reproduce, disclose, change, sell or rent the work)
- Moral right – non‑transferable; includes right of parenthood and to object to uses conflicting with the author’s convictions
Define a Registered Trademark.
A distinctive sign that distinguishes the goods or services of one undertaking from another and is registered in the relevant territories.
List three types of visual trade marks mentioned.
- House mark (e.g. ICI, Lotus)
- Product mark (e.g. Dulux, Elise)
- Quality mark (e.g. Wool mark)
- Shapes/appearance (e.g. Coca‑Cola bottle)
- Sound marks (e.g. Harley Davidson engine, MGM lion, ‘Intel inside’ tune)
What do Design Rights protect?
The appearance of a product – shape, colour, texture, materials and ornamentation.
How long can a Registered Design Right last?
- Up to 25 years from application, renewable in five‑year periods
Summarise the purpose of a Patent.
A patent is a deal with society – full disclosure of a new idea in exchange for a limited‑time monopoly, enforced under civil law.
