question

Porter defined ________ as the amount of money that a customer is willing to pay for a resource, product, or service.

answer

value

question

Porter's model of business activities includes ________, which are interactions across value activities.

answer

linkages

question

The difference between the value that an activity generates and the cost of the activity is called the ________.

answer

margin

question

If customers perceive the benefits of a substitute to be similar to that of a product, then ________.

answer

the threat from the substitute is strong

question

The competitive strategy followed by an organization is derived from its ________.

answer

structure

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question

The competitive strategy of an organization determines its ________.

answer

value chains

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question

Porter's five competitive forces can be grouped into two types: forces related to ________ and forces related to supply chain bargaining power.

answer

competition

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question

Two strength factors that relate to all three competitive forces are ________ and customer loyalty.

answer

switching costs

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question

As Porter says, the processes and systems in an organization pursuing differentiation strategy must ________ to avoid negative margins.

answer

create sufficient value to cover their costs

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question

A business that selects a differentiation strategy would ________.

answer

add cost to an activity provided it has a positive margin

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Practice Quiz 4: MIS Chapter 3 – Flashcards

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