ACC 270 - Exam 1 Flashcards

Q: Dell, previously the world\'s number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell;s present struggles

Underscore the importance of continually assessing a firm\'s strategic position among changing market conditions.

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Sergey Bring and Larry Page were both Twenty something doctoral students at Stanford University when they founded

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Google

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Technology experts in the area of ---- specialize in technology for competitive advantage.

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Strategy

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Amazon was started by

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Jeff Bezos

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Steve Chen and Chad Hurley are credited as the founders of

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Youtube

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The USA holds the number one ranking in home broadband access.

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False

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A company uses WebEx, a popular commercial application, to conduct training sessions for its employees who are spread across different countries. This is an example of the impact of the technology in the area of

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human resources

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___ is the third most popular social network in the USA and was founded by Catherine Cook

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MyYearbook.com

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SEM, SEO, CRM and personalization systems are all central components of the new ____ toolkit

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Marketing

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Tony Hsieh served as CEO of ___ and eventually sold the firm to Amazon for $900 Million

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Zappos

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Yahoo was started by

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Jerry Yang and David Filo

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In his twenties, Tony Hsieh sold LinkExchange to Amazon for over a half a million dollars.

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False

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Some of the radical changes brought about by new technologies include

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The creation of an unprecedented set of security and espionage threats.

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The rise of open source software has lowered computing costs for start-up and blue chip companies worldwide.

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True

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The ____ Act is a piece of U.S legislation that raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations.

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Sarbanes-Oxley

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Today's job seekers are writing resumes with key words in mind, aware that the first cut is likely made by a database search program, not a human being.

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True

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Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell;s present struggles

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Underscore the importance of continually assessing a firm's strategic position among changing market conditions.

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Apple's dominance of smartphone and tablet markets has allowed the firm to lock up 60% of the world's supply of advanced touch screen displays, and to do so with better pricing than would be available to smaller rivals. This is an example of ___

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A growing firm gaining bargaining power with its suppliers or buyers

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

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Critical resources for competitive advantage

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___ Exist when consumers incur an expense to move from one product or service to another

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Switching Costs

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Which of the following statements about technology is true?

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Technological improvements can be copied by rivals, leading to a profit-eroding arms race.

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Financial performance that consistently outperforms industry averages is known as:

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Sustainable competitive advantage.

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

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Firms with low switching costs can be easily and rapidly overtaken by strong rivals

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

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Spaced across increasing units of production.

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As one of the primary components of the value chain, operations involves:

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Tuning inputs into products or services.

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Advantages related to a firm's size are referred to as:

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Scale advantages.

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which of the following is a source of bargaining power for buyers?

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Greater choice of products

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A firm is said to be ____ when it attempts to match the benefits of a successful position while maintaining its existing position.

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Straddling

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The set of activities through which a product or service is created and delivered is knows as____

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Value chain

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Which of the following represents one of the sources of switching costs?

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Search costs

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Leveraging consumers to promote a product or service is known as

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Viral Marketing

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Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more ___

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Scalable

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Netflix has used the long tail to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from these ties with Netflix

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A cut of the subscription revenue from every disk sent out by Netflix

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One of the benefits of disintermediation in the video industry is that:

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Studios get to retain all the money generated through new windows.

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How is the collaborative filtering software used by Netflix advantageous to the firm

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The software has created an enormous data advantage, that is valuable, results yielding, and impossible for newcomers to match.

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Which of the following is true about Netflix

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It has attempted to counter rivals with an exclusive content by securing exclusive content by securing exclusive streaming rights for several popular shows.

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With the entry of Wal-Mart and Blockbuster into the DVD-by-mail market, Netflix was forced to:

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Cut prices and increase spending on advertising.

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How do Netflix's scale economies affect competition from established firms?

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Established firms that challenge Netflix straddle markets, unable to gain full efficiencies from their efforts.

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How does Cinematch offer Netflix additional operational advantages?

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Cinematch is liked to warehouses and recommends movies that are likely to be in stock

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What solution has Netflix come up with to address the need to deliver content to customers? televisions?

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Netflix provides a software platform to firms seeking to build Netflix access into their devices.

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Marginal Costs:

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Are associated with each additional unit produced.

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During Netflix's high-growth period, the DVD-by mail business enjoyed lower marketing costs due to the:

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Word-of-mouth publicity generated by its users.

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The practice of windowing involves:

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Making content available to a distribution channel for a specified time period under a different revenue model.

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Netflix offers its subscribers a selection of over one hundred thousand titles, while other video rental firms can only offer as much as three thousand. This prevents a significant___ for Netflix over its rivals

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Scale Advantage

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Netflix gets the lowest possible postal rates for first-class mail delivery because

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It picks up and drops off the DVDs at the USPS hubs and presorts all outgoing mail for faster delivery.

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Churn rate is a term that refers to the:

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Rate at which customers leave a product or service

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The third wave of computing was characterized by the intro of

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Personal computers

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The term ___ refers to computers that are among the fastest of any in the world at the time of their introduction

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Supercomputers

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Which of the following statements regarding the current electronic waste scenario is true?

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Electronic waste increases with the rise of living standards worldwide.

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Multicore processors are formed by

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Putting two or more lower power processor core on a single chip

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One of the advantages of solid state electronics is that:

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They consume less power

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Which of the following is true about the IBM supercomputer, Watson?

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A physician assistant Watson could leverage massive diagnosis databases, surfacing a best guess at what docs should be paying attention to.

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___ is a phenomenon where electrons slide off their pathways, and presents an obstacle to the continuance of Moore's Law.

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Quantum tunneling

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Which of the following statements about multicore processors is true?

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Multicore processors are not suitable for solving problems that are linear in nature.

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Moore's Law states that

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Chip performance per dollar doubles every eighteen months.

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Moore's Law has been in effect since the ____ wave of computing

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Second

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_____ Is a technique in which computers are designed with many microprocessors that work together, simultaneously, to solve problems.

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Massively parallel computing

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Which of the following problems is least likely to be solved through grid computing?

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Linear Problems

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Which of the following sets of interrelated forces threatens to slow down the progression of Moore's Law?

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Size, heat, and power

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Based on the author's take on e-waste management, a manager would do well to learn that:

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Disposal and recycling partners must be audited with the same vigor as suppliers and other partners.

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Semiconductors that are manufactured as a stack of multiple, interconnected layers instead of in one flat plane are known as:

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Three-dimensional semiconductors

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Dynamic pricing:

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Refers to pricing that shifts over time.

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The firm's period between shelling out money and collecting funds associated with a given operation is referred to as the ___

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Cash conversion cycle

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Amazon Web Services

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Offer several advantages, including increased scalability, reliability, and security.

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Amazon's moves are largely motivated by:

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Customer focus.

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Which of the following is true?

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Amazon fins a competitive advantage in the cycle of buyer-seller growth. Amazon is no longer the world's largest online retailer.

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Which of the following strategies was followed by Amazon's founder

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He postponed profit harvesting.

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What does the statement "Inventory turns of a store is high." mean?

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Merchandise in the store sell quickly.

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Which of the following products has contributed the most to the profits of Amazon?

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Kindle

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Initially, it was suggested that Amazon.com be renamed to Amazon.org becuase

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It was predicted that the company would never make money.

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Which of the following is true of Amazon's warehousing process?

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When stacking shelves in its warehouses, Amazon ensures that no two similar products sit next to each other.

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Which of the following is true of Amazon?

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The three pillars of Amazon's business are large selection, convenience and lower prices.

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Mark, a retailer, is unable to sell his products. He doesn't have sufficient cash to meet his on-going expenses. In this scenario, Mark is facing a

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Liquidity problem

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Which of the following is the most liquid asset?

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Cash

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Which of the following is an example of agency pricing?

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A department store gets a cut on the selling price of a product which is set by the product's manufacturer.

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____ is the founder of Amazon

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Jeff Bezos

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A market dominated by a number of powerful sellers is known as a

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Oligopoly

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The video game business is said to be a two-sided market. Customers buy a video game console largely based on the number of really great games available for the system. Software developers write games based on

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Their ability to reach the greatest number of paying customers

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American Express, a credit card firm, provides services to consumers that include plastic cards, individual accounts, and phone-based customer service. It also provides merchants with services, such as terminals for authorizing transactions and procedures for submitting charges. Based on the above facts, American express is said to be in a ____ market

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Two sided

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Network effects occur when

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

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Which of the following factors represents one of the sources of value derived form network effects?

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Staying power

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Apple , which controls over 75% of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that:

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Firms with strong network effects enjoy substantial bargaining power over partners.

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A market is said to be ____ if it derives most of its value from a single class of users.

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One-sided

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Microsoft's Live Maps and virtual Earth 3d was a late entrant to the Internet mapping game. Users had already put in countless hours building resources that meshed with Google Maps and Google Earth. However, by adopting the same keyhole markup language (KML) standard used by google, any work done by users for Google in KML could be used by Microsoft. What strategy of Microsoft's allowed it to catch up with google?

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Making a new product compatible with the leading standard

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Apple is known around the world as a major PC manufacturer and maker of digital music players (Ipods). with the intro of the iTunes effort, Apple now boasts a 75% share in digital music sales, in direct competition with the four major record labels in the music industry. This has been possible due to the ____ of Apple's hardware business and the digital music market.

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Convergence

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Nokia is a cell phone brand that offers digital cameras as part of its cell phone products. It is now in direct competition with camera brands such as Canon and Sony, and has become the world's largest seller of cameras. This is an example

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A evelopment

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Staying power refers to the

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Long term viability of a product or service

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Worldwide auction leader eBay started operations in Japan just five months after Yahoo! launched its Japanese auction service. But eBay was never able to mount a credible threat and ended up pulling out of the market. This example shows that:

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It's imperative to move first in markets influenced by network effects.

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An____ is a product that allows a firm to tap into the complementary products, data, or user base of another product or service.

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Adaptor

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Customers who owned Nitendo's 8-bit video game console were unable to play the same games on the firm's new 16-bit S.N.E.S system. there was a little incentive for existing Nitendo fans to stick with the firm. In this case, Nitendo's new offering suffered from a lack of

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Backward compatibility

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___ is said t occur when one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering.

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Envelopment

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What advantage do folksonomies have over the specialized lexicon of experts?

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Classification schemes are created by users, who understand them best.

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Amazon.com publishes guidelines that tell others how to get a service to perform a task such as call one another or share data. These guidelines allow developers to write their own applications and Web sites that can send Amazon orders. These guidelines are called:

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APIs

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Which of the following statements is true about corporations and blogging

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CEOs use blogs for purposes that include a combo of marketing, sharing ideas, press response, image shaping and reaching consumers directly.

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Salesforce.com's chatter, SocialText Signals, and Yammer are all examples of:

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A corporate microblogging services.

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Which of the following statements holds true for microblogging

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Their key use to distribute time-sensitive info, share opinions, virally spreads ideas, run contests and promotions, solicit feedback, provide customers support, track commentary on firms/products/issues and organize protests

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A(n)____ is a fake online persona created to promote a particular point of view, often in praise of a firm, product, or individual.

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Sock puppet

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Just as the wisdom of crowds keeps Wikipedia accurate, a blogger's errors of fact or logic are exposed by:

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comment threads

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RSS enables users to:

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Scan headlines and click to access relevant news and info.

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What is the likely implication of a large and active wiki community?

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It becomes more likely that content is up-to-date and errors are quickly corrected.

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____is a term used to describe others taking advantage of a user to describe others taking advantage of a user or service without providing any sort of reciprocal benefit.

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Free rider problem

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A prediction market involves

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Polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome.

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A _____ refers to a list of blogger's favorite sites, often displayed on the right or left column of a blog's main page.

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Blog roll

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Which of the following refers to a feature of wikis that allows the restoring of earlier work in the event of a posting error, inaccuracy, or vandalism?

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roll back

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_____ is a term referring to the collective community of bloggers, as well as those who read and comment on blogs.

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Blogosphere

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Which of the following social networking sites in which members have to be "endorsed" by other members has become a vital tool for many businesses and professionals?

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Performing the same tasks better than rivals perform them. This leads to the problem of "sameness."

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Operational effectiveness

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

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Fast follower problem

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Refers to performing different activities from those of rivals, or the same activities in a different way.

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Strategic positioning

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Used technology to craft an ultra -efficient model to overcome two of the most pressing problems for shoppers: limited selection and high prices

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FreshDirect

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Straddling

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Attempts to occupy more than one position, while failing to match the benefits of a more efficient, singularly focused rival.

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Resource-based view of competitive advantage

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a theory that a firm can develop a competitive advantage through the collection and harvesting or resources to produce sustainable core competencies in the marketplace

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Developed a way of doing business that others will struggle to replicate, and in nearly every successful effort of this kind, technology plays a key enabling role.

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Initiation-resistant value chain

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Competitive Advantage

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A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition

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Brand

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Symbolic embodiment of all the info connected with a product or service.

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Scale Advantages

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advantages related to size

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Economies of Scale

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Factors that cause a producer's average cost per unit to fall as output rises.

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Scalable

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firms that benefit from scale economies as they grow

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Switching costs

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The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.

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Network Effects

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Also known as Metcalfe's Law, or network externalities. When the value of a product or service increases as its number of users expands.

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Distribution channels

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The path through which products or services get to customers.

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Affiliate networks

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partners like Amazon Affiliate Programs- associates post links ; earn referral discounts

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Strategic framework

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Help managers describe the competitive environment a firm is facing and can be used as brainstorming tools to generate new ideas for responding to industry competition.

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Porter's five forces

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1) competitive rivalry within industry 2) bargaining power of suppliers 3) bargaining power of customers 4) threat of new entrants 5) threat of substitute products

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Initial Public Stock offering

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The first sale of stock by a private company to the public

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Pure Play

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a business that operates on the internet only without a physical store.

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Studying Netflix

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Gives us a chance to examine how technology helps firms craft and reinforce a competitive advantage.

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Cinematch

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Netflix's proprietary recommendation system. Every time a DVD is returned the customer is asked to rate it. They use these rankings to give suggestions of other movies the customer may like.

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Collaborative Filtering

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A classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience.

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Churn rate

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the rate at which customers leave a product or service

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Crowdsourcing

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Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call

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Atoms to bits

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the idea that many media products are sold in containers (physical products, or atoms) for bits (the ones and zeros that make up a video file, song, or layout of a book). as the internet offers fast wireless delivery to TVs, music players, book readers, and other devices, the "atoms" of the container aren't necessary. physical inventory is eliminated, offering great cost saving. Nick Negroponte

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Windowing

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Industry practice whereby content (usually a motion picture) is available to a given distribution channel for a specified time period or "window," usually under a different revenue model (e.g., ticket sale, purchase, license fee).

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Bandwidth Caps

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A limit, imposed by the Internet service provider (e.g., a cable or telephone company) on the total amount of traffic that a given subscriber can consume (usually per each billing period).

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Moore's Law

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law created by moore stating that the number of transistors per square inch on an integrated chip doubles every 18 months- generally accurate

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Microprocessor

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Part of the computer that executes the instructions of a computer program

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RAM

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Volatile, chip-based memory. It provides temporary storage. Nonvolatile memory refers to a more permanent storage media like a hard disk or flash memory.

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Flash memory

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A type of nonvolatile computer memory that can be electrically erased and rewritten repeatedly.

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Solid state electronics

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Semiconductor-based devices. Solid state components often suffer fewer failures and require less energy than mechanical counterparts because they have no moving parts. RAM, flash memory and microprocessors are solid state devices. Hard drives are not.

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Semiconductors

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elements that conduct an electric current under certain conditions

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Price Elasticity

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A measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

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Ambient Devices

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Firm that's embedding computing and communications devices into everyday products to make them more useful and smarter.

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Glow Cap

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Vial cap that will alert you to when it is time to take your medication. Will send adherence reports to yourself, your MD etc. Can be set up to order refills from your pharmacy

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Proteus

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Developed a sensor made of food and vitamin materials that can be swallowed in medicine

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Fabs

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Semiconductor fabrication facilities; the multibillion dollar plants used to manufacture semiconductors.

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Silicon Wafer

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A thin, circular slice of material used to create semiconductor devices. Hundreds of chips may be etched on a single wafer, where they are eventually cut out for individual packaging.

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Multicore Microprocessors

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a microprocessor that combines two or more independent processors into a single computer so they can share the workload and improve processing capacity

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Optical computing

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Signals are sent via light rather than electricity

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Quantum Computing

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A technology that applies the principles of quantum physics and quantum mechanics to computers to direct atoms or nuclei to work together as quantum bits (qubits), which function simultaneously as the computer's processor and memory.

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Supercomputers

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Largest and fastest computers, capable of storing and processing tremendous volumes of data.

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Massively Parallel

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Computers designed with many microprocessors that work together, simultaneously, to solve problems.

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Grid Computing

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an approach to high performance computing that uses the spare processing capacity of computers connected to a network. Each computer is given a small portion of the task to process in its spare time.

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Software as a Service

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"on-demand software" is a delivery model in which software and its associated data are hosted in the cloud and accessed using a web browser

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Cloud computing

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use of web services to perform functions that were traditionally performed with software on an individual computer; i.e. Flickr, Google Docs, etc.

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Server Farm

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A massive network of computer servers running software to coordinate their collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale Internet services.

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Disruptive Technologies

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Technologies that destroy the value of existing technology and create new markets

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E-waste

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discarded electronic equipment such as computers, cell phones, television sets, etc.

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Cash Conversion Cycle

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period between shelling out cash, and collecting funds associated with a given operation.

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Liquidity probelms

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Can't generate cash quickly enough

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Inventory turns

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Sometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during the course of a year. A higher figure means that a firm is selling products quickly.

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Two-sided Network effect

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More buyers attract more sellers, and more seller attract more buyers

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Flash-sales

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Woot and lovefilm, netflix of europe

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Kindle

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Atoms to bits prompted the creation of the...

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Channel conflict

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arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals

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Network Effects

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Also known as Metcalfe's Law, or network externalities. When the value of a product or service increases as its number of users expands.

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Exchange, staying power, and complementary benefits

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The value derived from network effects comes from three sources

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Staying power

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Long-term viability of a product or service.

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Switching costs

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Fixed costs buyers face when they change suppliers

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Complementary benefits

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Products or services that add additional value to the primary product or service that makes up a network.

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One-side markets

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derive most of their value from a single class of user

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Same-side exchange benefits

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benefits derived by interaction among a single class of users

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Cross-side Exchange benefits

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When an increase in the number of users on one side of the market (console owners, for example) creates a rise in the other side (software developers).

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Monopolistic

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A market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products.

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Oligopoly

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(economics) a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors

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Technological leap-frogging

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Competing offering a superior generation of technology, can be really tough

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Viral Promotion

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leveraging a firm's customers to promote a product or service

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Blue Ocean Strategy

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An approach where firms seek to create and compete in uncontested "blue ocean" market spaces, rather than competing in spaces and ways that have attracted many, similar rivals.

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Examples of product building

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Microsoft offering Windows Media Player with its operating Systems. Sun offering Java virtual Machine along with the netscape Browser

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Backward Compatibility

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the ability to take advantage of complementary products developed for a prior generation of technology

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Osborne Effect

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If a pronouncement is made too early, the firm's sales of current products may decline because current customers delay purchase in anticipation of the intro of the new product

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Congestion Effects

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when increasing numbers of users lower the value of a product or service

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Web 2.0

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A new class of Internet services targeted at harnessing the power of the Internet to empower users to collaborate, create resources, and share info is distinctly different from the static Web sites and transaction-focused storefronts.

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Blogs

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Web-based journals often used by individuals to groups to maintain a record of thoughts, pictures and interests, an online diary.

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Long Tail

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Loaded with niche content that is discoverable via search engines and blog indexes.

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Trackbacks and Blog rolls

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help distinguish and reinforce the reputation of blogs.

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Mainstream Media

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Corporations that blog can enjoy immediate and unfiltered distribution of their ideas without going through..

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Wiki

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A Web site that can be modified by anyone, from directly within a Web browser (provided that user is granted edit access).

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Microblogging

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The practice of sending brief posts (140-200 characters) to a personal blog, either publicly or to a private group of subscribers who can read the posts as IMs or as text messages.

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SMS

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"Short message service."communications protocol that allows short text messages over cell phone.

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Free Rider problem

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the problem faced by interest groups when citizens can reap the benefits of interest group action without actually joining, participating in, or contributing money to such groups.

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RSS reader

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A piece of software or a web site that allows one to subscribe to a newsfeed.

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Folksonomies

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A collection of tags created by users that provide metadata, or data about data, regarding information

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Mash-ups

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Combos of two or more technologies or data feeds into a single, integrated tool.

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XML

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Extensible Markup Language

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Location-Based

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a service provided through cell phone networks an

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GPs

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A system that determines the precise position of something on Earth through a series of satellites, tracking stations, and recievers.

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Augmented-Reality

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Computer applications that overlay real-world images with computer-generated imagery and data.

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Virtual Worlds

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users appear in a computer-generated environment

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Avatar

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Animated character

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Wisdom of crowds

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Under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products.

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Prediction Market

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A diverse crowd is polled and opinions aggregated to form a forecast of an eventual outcome.

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Decentralized

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No one at the top is dictating the crowd's answer

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SMART

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Social Media awareness and Response Team

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Three Rs

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Representation, Responsibility, Respect

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Four M's of engagement

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Megaphone, magnet, monitoring, mediation

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Value Chain

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Inbound logistics, operations, outbound logistics, marketing and sales- support and firm infrastructure, human resource management, technology/ research and development, procurement

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Value Chain

answer

Inbound logistics, operations, outbound logistics, marketing and sales- support and firm infrastructure, human resource management, technology/ research and development, procurement

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Value Chain

answer

Inbound logistics, operations, outbound logistics, marketing and sales- support and firm infrastructure, human resource management, technology/ research and development, procurement

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