Exam 2: Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

Leveraging consumers to promote a product or service is known as _____.

Businesses benefit from economies of scale when the cost of an investment can be:

If there is the availability of a wide variety of undifferentiated commodity goods in a given market, and these products are available online, then bargaining power typically shifts to the buyer.

Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that:

A salesperson's ability to effectively bargain with his/her consumers is called viral marketing.

Benefits related to a firm's size are referred to as _____.

According to the resource-based view of competitive advantage, if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that are valuable and can be substituted easily.

More recently, Apple has leveraged its _____ platform as a distribution channel to launch a new subscription service. Just nine months after launching the Apple Music, the firm had attracted over 13 million paying subscribers to its streaming service..

The internet is largely seen as lowering the entry barrier for new entrants, but firms that enter may have little chance of success unless they have a competitive advantage over existing rivals

Metcalfe's Law is used to explain the concept of switching costs.

Fast growing Groupon was able to dissuade rivals from entering its market because the firm's technology was so difficult to replicate.

TiVo was a high-flying firm, whose name was synonymous with digital video recording. Why has the firm struggled to achieve consistent profitability?

Operational effectiveness refers to:

Uber is an example of a business model that has strengthened the bargaining power of suppliers (cab drivers) with respect to middlemen who took a cut of their services (e.g. cab companies).

Moving first pays off when the time lead is used to create:

_____ hold intellectual property not with the goal of bringing novel innovations to market but instead in hopes that they can sue or extort large settlements from others.

A firm can benefit from high switching costs, even when rivals offer free products.

The _____ problem exists when rivals watch a pioneer's efforts, learn from their successes and missteps, and then enter the market quickly with a comparable or superior product at a lower cost.

When technology can be matched quickly, it is rarely a source of competitive advantage.

_____ exist when a product or service becomes more valuable as more people use it.