BMGT301 Exam 1

Ch 1, 2, 3, 4, 5...?

Fast Follower

Rivals entering the market quickly with a comparable or superior product at a lower cost, before the first mover can dominate.

1.  Savvy rivals watch a pioneer’s efforts

2.  Learn from their successes and missteps

3.  Then enter the market quickly with a comparable or superior product at a lower cost

4.   Before the first mover can dominate.  

Strategic Positioning

Performing different tasks than rivals or performing the same tasks in a different way.

Straddling

When a firm attempts to match the benefits of a successful position while maintaining its existing position.

Resource-based Theory

True sustainable advantage comes from assets and business models that are valuable, rare, difficult to imitate, and have no substitutes.

Imitation-Resistant Value Chains

Value chains that others find hard to replicate.

Brand

Proxy for quality and inspires trust.

Scale

Advantages related to size; economies of scale.

Switching Costs and Data

Costs consumers incur by switching providers.

Differentiation

Being different and moving away from being commoditized.

Network Effects

When the value of a product or service increases as its number of users expands.

Distribution Channels

The path through which products or services get to customers.

Patents

Legal protection for a product or process.

Technology

Key role in creating and reinforcing assets for sustainable advantage.

Transaction Processing Systems (TPS)

Handles daily transactions and provides detailed reports for operations personnel and first-line supervisors.

Management Information Systems (MIS)

Provides summary transaction data and exception reports for middle managers.

Decision Support Systems (DSS)

Optimized for data analysis and provides interactive simulations and analysis for professionals and staff managers.

Executive Support Systems (ESS)

Aggregates data and provides projections and responses to queries for senior managers.

Value Chain Model

Highlights specific activities in the business for competitive strategies and strategic impact of information systems.

Value Web

Collection of independent firms using IT to coordinate value chains collectively.

Internet's Impact on Competitive Forces

Intensified competitive rivalry and raised customer bargaining power.

Organizational Hierarchy Levels

Senior, middle, and operational management levels with specific information needs.

Five Forces Model

(1) the intensity of rivalry among existing competitors:
(2) the threat of new entrants
(3) the threat of substitute goods or services
(4) the bargaining power of buyers
(5) the bargaining power of suppliers

Zara's Use of Information Technology

Gained and sustained competitive advantage by going against conventional wisdom.

FreshDirect's Use of Information Technology

Utilizes IT to gain and sustain competitive advantage.

Netflix's Use of Information Technology

Utilizes IT in its business model to gain and sustain competitive advantage.

Sustainable Competitive Advantage

Consistently outperforming industry averages in financial performance.

Meets a customer’s need better than competition can

Operational Effectiveness

Performing tasks better than rivals.