Dynamic Markets, Online Retailing, Competition, and Risk

Vocabulary flashcards covering business concepts including dynamic and static markets, product and process innovation, online retailing, forms of competition, Porter's Five Forces, and risk versus uncertainty.

Dynamic Market

A market that is subject to rapid and continuous change over time, unlike a static or stable market.

Static Market

A stable market where innovation is rare, price and marketing vary little, market size and market share remain fairly constant, and the external business environment is fairly stable.

Innovation

Putting new ideas into action.

Product Innovation

The creation and development of new or improved products or services that meet customer needs in a better way (focuses on what the business sells).

Process Innovation

The implementation of new methods, technology, or practices that improve the efficiency, effectiveness, and productivity of business operations (focuses on how the business produces).

Intrapreneurship

The practice of encouraging employees within an organization to develop creative ideas and innovation.

Continuous Improvement (Kaizen)

An operational approach that constantly looks for ways to improve products and processes.

Online Retailing

The selling of goods and services via the internet through a website or app (using e-commerce or m-commerce) and delivering them to customers.

E-commerce

The buying and selling of goods, services, and information over an electronic network, such as the internet.

M-commerce

The buying and selling of goods and services through wireless handheld devices, such as smartphones.

Competition

Rivalry among sellers where businesses attempt to increase sales, profit, and/or market share.

Direct Competition

Rivalry between businesses that sell similar goods, such as Papa John's and Domino's.

Indirect Competition

Rivalry between firms that sell substitute goods, such as KFC and Domino's.

Competitive Advantage

Features of a business and/or its products that enable it to generate more sales or more profits than its rivals.

Competitiveness

The ability of a business to outperform rivals and achieve a sustainable competitive advantage.

Barriers to Entry

Factors that make it difficult for new firms to enter a market, such as high start-up costs, brand loyalty, and limited access to distribution channels.

Porter's Five Forces Model

A framework used to judge market competition by evaluating competitive rivalry, the threat of new entrants, the threat of substitutes, the power of customers, and the power of suppliers.

Risk

A situation where the probabilities of different potential outcomes are known or can be estimated.

Uncertainty

A situation where the probabilities of different potential outcomes are not known or cannot be reliably estimated.

Supply-Chain Shocks

Sudden events that disrupt the production, availability, and pricing of goods.

Scenario Planning

A risk management strategy used to deal with uncertainty by preparing possible responses to different potential situations, such as responding to a flood.