Ecosystems, Bottlenecks, and Performance in Strategic Management

This set of flashcards covers key concepts regarding ecosystems, bottlenecks, value propositions, and strategic frameworks discussed in the lecture on strategic management.

Ecosystem

The context within which a firm competes and solves customers’ problems, often involving multiple industries.

Bottleneck

A critical element of an ecosystem that limits the ecosystem's value proposition or benefits actors that control it.

Value Proposition

A statement that conveys which customers the business serves, their needs, and the relative price of the product or service.

Complementors

Entities that increase the value of the focal industry's or firm’s products, typically purchased together, enhancing consumer willingness to pay.

Co-optition

A strategy where firms cooperate for value creation while competing for value capture at the same time.

Two-Sided Market

A market that facilitates interactions between two distinct user groups that provide each other with network benefits.

Network Effects

The phenomenon where increased numbers of participants improve the value of a good or service.

Revenue

Income generated from normal business operations, which can vary in its sources in the context of ecosystems.

Digital Phone Evolution

The transition from analog to digital phones in the mobile phone market, significant for the shifts in technology and consumer accessibility.

AI Employee Compensation

The considerations of salaries and benefits for employees engaged in artificial intelligence roles, particularly concerning market changes.