← ch3 Test
5 Written Questions
3 Matching Questions
- The law of diminishing returns always applies to digital, as well as traditional companies.
A) compares the efficiency and effectiveness of your business processes against strict standards.
B) allows industry participants to influence industry-wide standards.
C) is used to measure the speed and responsiveness of information technology.
D) synchronizes the business processes of customers, suppliers, and trading partners.
- A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)
A) industry value chain.
B) business ecosystem.
C) value web.
- a C
- b FALSE
- c A
5 Multiple Choice Questions
- Mass customization
5 True/False Questions
One type of competitive advantage Amazon was able to implement in selling books over the Internet was that of being a new market entrant.
Answer → TRUE
Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered ________.
Answer → strategic transitions
The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage?
A) E-commerce is affected by the law of diminishing returns.
B) Internet technologies are universal, and therefore usable by all companies.
C) Internet shopping produces cost transparency.
D) The Internet enables the production or sales of substitute products or services.
Answer → A
A transparent marketplace means that there is high product differentiation.
Answer → FALSE
A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.
A) product differentiation
B) traditional competitors
C) low number of suppliers
D) new market entrants
Answer → D