IS Chapter 2 – Flashcards
Unlock all answers in this set
Unlock answersquestion
FALSE
answer
Network externalities exist when a product or service becomes less expensive as more people use it. TF
question
FALSE
answer
According to Michael Porter, the reason many firms suffer margin-eroding competition is because they have defined themselves according to strategic positioning rather than operational effectiveness. TF
question
Technological improvements can be copied by rivals, leading to a profit-eroding arms race.
answer
Which of the following statements about technology is true?
question
spread across increasing units of production.
answer
Businesses benefit from economies of scale when the cost of an investment can be:
question
TRUE
answer
Timing and technology alone will not yield sustainable competitive advantage. TF
question
Brand
answer
A(n) _____ is the symbolic embodiment of all the information connected with a product or service.
question
Turning inputs into products or services
answer
As one of the primary components of the value chain, operations involves:
question
FALSE
answer
Market entry is the same as building a sustainable business. TF
question
performing the same tasks better than rivals perform them.
answer
Operational effectiveness refers to:
question
Viral Marketing
answer
Leveraging consumers to promote a product or service is known as _____.
question
FALSE
answer
A trademark is the symbolic embodiment of all the information connected with a product or service of a firm. TF
question
Price transparency increases while information asymmetry decreases.
answer
How does the Internet typically impact price transparency and information asymmetry?
question
TRUE
answer
Cisco's acquisition of Pur Digital, makers of the Flip video camera line, was largely considered a flop because comparable technology soon became a feature in other popular consumer electronics products. TF
question
Straddling
answer
A firm is said to be _____ when it attempts to match the benefits of a successful position while maintaining its existing position.
question
Dense Wave Division Multiplexing
answer
In _____, the light inside fiber is split into different signal-carrying wavelengths in a way similar to how a prism splits light into different colors.
question
search costs; quality; trust
answer
A strong brand can be an exceptionally powerful resource for competitive advantage by lowering ________, proxying _____ and inspiring _____.
question
FALSE
answer
In the United States, business models cannot be patented because the field of business is extremely dynamic. TF
question
Distribution Channels
answer
The paths through which products or services get to customers are known as _____.
question
resource-based thinking can help avoid the trap of carelessly entering markets simply because growth is spotted.
answer
Many telecom firms began digging up the ground and laying webs of fiberglass to meet the growing demand for Internet connectivity. However, rivals and startups began to imitate these firms and soon these new assets were not so rare and each day they seemed to be less valuable. It can be inferred from this example that:
question
Sustainable Competitive Advantage
answer
A firm's financial performance that consistently outperforms its industry's peers is known as _____.
