Lecture 4: Digitization and Competitive Advantage Flashcards Preview

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Flashcards in Lecture 4: Digitization and Competitive Advantage Deck (16):
1

What is operational effectiveness?

Performing the same tasks as rivals but better

2

What are techniques used in operational effectiveness?

- Product quality
- Optimizing production processes
- Reducing overhead costs
- Improving customer experiences

3

What is the danger of operational effectiveness strategy?

Resulting in sameness, making product a commodity and fierce competition

4

What are the two forms strategic positioning?

1. Performing different tasks than rivals
2. Performing the same tasks i a totally different manner

5

What is the resource based view for competitive advantage?

The tangible and intangible assets which are tied semipermanently to the firm

6

For a competitive advantage, resources must be...

- Valuable
- Rare
- Imperfectly imitable
- Non-substitutable

7

What is a imitation resistant value chain?

A set of activities to create and deliver value to customers that cannot be easily replicated

8

What is the brand of a company?

The symbolic embodiment of all the information connected with a product

9

What is scalability?

Products and services that can be extended to a large number of customers at low marginal costs

10

What are switching costs?

Expenses incurred when switching to a competing product

11

What is a RFID system?

- RFID systems consists of tags and readers
- Tags can be passive or active
- Passive tags use energy from reader waves to send response
- Active tags contain small energy source to send response
- RFID does not require line of sight

12

What are three benefits of using RFID?

- Automation of processes
- Process transformation
- Further insight regarding performance

13

What are potential issues of using RFID?

- Data privacy
- Costs

14

What are all aspects of Information Systems?

- Hardware and software
- Data
- Procedures
- People

15

What are three lessons from the Netflix case?

1. Digital goods and the long tail
2. The long-enough tail
3. Collaborative filtering and data asset

16

Why was it easier for Netflix to exploit the long tail in DVD rental?

Due to the first sale doctrine being limited only to physical goods, meaning netflix needed new license for digitally licensing its movies