Practice Quiz 4: MIS Chapter 3 – Flashcards
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Porter defined ________ as the amount of money that a customer is willing to pay for a resource, product, or service.
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value
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Porter's model of business activities includes ________, which are interactions across value activities.
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linkages
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The difference between the value that an activity generates and the cost of the activity is called the ________.
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margin
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If customers perceive the benefits of a substitute to be similar to that of a product, then ________.
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the threat from the substitute is strong
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The competitive strategy followed by an organization is derived from its ________.
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structure
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The competitive strategy of an organization determines its ________.
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value chains
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Porter's five competitive forces can be grouped into two types: forces related to ________ and forces related to supply chain bargaining power.
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competition
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Two strength factors that relate to all three competitive forces are ________ and customer loyalty.
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switching costs
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As Porter says, the processes and systems in an organization pursuing differentiation strategy must ________ to avoid negative margins.
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create sufficient value to cover their costs
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A business that selects a differentiation strategy would ________.
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add cost to an activity provided it has a positive margin
