PART 8 Flashcards
(30 cards)
A __________ is a statement that identifies a business’s strategies to compete, its goals and the plans and policies that will be required to carry out those goals.
competitive strategy
Through its competitive strategy, an organization seeks a __________ in an industry. That is, it seeks to outperform its competitors in some measure of cost, quality and speed. _________ helps a
company control a market and generate larger-than-average profits.
Competitive advantage
______ provide a competitive advantage by
helping an organization implement its strategic goals and increase its
performance and productivity. Any information system that helps an organization gain a competitive advantage or reduces a competitive disadvantage is a
________.
Strategic Information System (SISs)
The best-known framework for analyzing competitiveness
Porter’s Competitive Forces Model
Porter’s competitive forces model by
Michael Porter
The best-known framework for analyzing competitiveness
Porter’s Competitive Forces Model
identifies five major forces that can endanger or enhance a company’s position in a given industry
Porter’s Competitive Forces Model
will enter your market is high when entry is easy and low when significant barriers to entry exist.
The threat of entry of new competitors
_____ is a product or service feature that customers have learned to expect from organizations in a certain industry.
Entry barrier
Supplier power is high when buyers have a few choices from whom to buy and low when buyers have many choices.
The bargaining power of suppliers.
The Internet’s impact on suppliers is mixed. On the one hand, it enables buyers to find alternative suppliers and compare prices more easily, thereby reducing the bargaining power
The bargaining power of suppliers.
Buyer power is high when buyers have many choices from whom to buy and low when buyers have few choices.
The bargaining power of customers.
In contrast, loyalty programs reduce buyer power. This programs reward customers based on the amount of business they do with a particular organization. Information technology allows companies to track the activities and accounts of millions of customer’s accounts thereby reducing buyer power.
The bargaining power of customers.
If there are many substitutes for an organization’s product or services, the threat of substitutes is high. If there are few substitutes, the threat is low.
The threat of substitute products and services.
Information-based industries are in greatest danger from substitutes. Any industry in which digitized information can replace material goods (for example, music, books) must view the Internet as a threat because it can convey this information efficiently and at low cost and high quality. Information-based industries are in greatest danger from substitutes. Any industry in which digitized information can replace material goods (for example, music, books) must view the Internet as a threat because it can convey this information efficiently and at low cost and high quality.
The threat of substitute products and services.
The threat from rivalry is high when there is intense competition among many firms in an industry. The threat is low when the competition is among fewer firms and is not as intense.
The rivalry among existing firms in the industry.
To identify specific activities in which they can use competitive strategies for greatest impact, they use _____
value chain model
The _____ also shows points where an organization can use information technology to achieve competitive advantage.
value chain model
According to _____the activities conducted in an organization can be divided into two categories: primary and support activities.
Porter’s value chain model
are those business activities that relate to the production and distribution of the firm’s products and services, thus creating value for which customers are willing to pay.
primary activities
Five primary activities:
- Inbound logistics (inputs)
- Operations (manufacturing and testing)
- Outbound logistics (storage and distribution)
- Marketing and sales
- After-sales services
Support activities
-Administration and management
-Human resource management v
-Product and technology development
-Procurement
A firm’s value chain is a part of a larger stream of activities, which Porter calls a ____.
value system
A _____ or a ______, includes the suppliers that provide the inputs necessary to the firm and their value chains.
value system, industry value chain
