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sustainable competitive advantage
financial performance that consistently outperforms industry average
fast follower problem
exists when savvy rivals watch a pioneer's efforts, learn from their success and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate
attempts to occupy more than one position while failing to match the benefits of a move efficient, singularly focused rival (ex: blockbuster attempting online sales and store sales)
resource-based view of competitive advantage
the strategic thinking approach suggesting that if a firm is to a maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources. that have 4 critical characteristics. these resources must be 1. valuable, 2. rare, 3. imperfectly imitable and 4. nonsubstitutable
dense wave division multiplexing (DWDM)
a technology that increases the transmission capacity (and hense speed) of fiber-optic cable. transmissions using fiber are accomplished by transmitting light inside "glass" cables. In ____ the light inside fiber is split into different wavelengths in a way similar to how a prism splits into different colors
imitation-resistant value chain
a way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role
the "set of activities though which a product or service is created and delivered to costumers"
the cost a consumer incurs when moving from one product to another. it can involve actual money spend as well as investments in time, any data loss, and so forth
also known as Metcalfe's Law, or network externalities. When the value of a product or service increases as its number or users expands
third parties that promote a product or service, typically in exchange for a cut of any sales
Porter's five forces
also known as industry and competitive analysis. A framework considering the interplay btw (1) the intensity of rivalry among existing competitors (2) the threat of new entrants (3) the threat of substitute goods or services (4) the bargaining power or buyers (5) the bargaining power of suppliers
total cost of ownership (TCO)
an economic measure of the full cost of owning a product (typically computing hardware and/or software) this includes direct costs such as purchase price, plus indirect costs such as training, support, and maintenance
products or services that add additional value to the primary product or service that makes up a network
products or services that allow for the development and integration of software products and other complementary goods. windows, the iphone, the wii, and the standards that allow users to create facebook apps are all _____
same side exchange benefits
benefits derived by interaction among members of a single class of participation ex: the exchange value when increasing numbers of IM users gain the ability to message each other
two sided market
network markets comprised of two distinct categories or participant, both of which that are needed to deliver value for the network to work ex: video game console owners and developers of video games
cross side exchange benefit
when an increase in the number of users on one side of the market (console owners for ex) creates a rise in the other side (software developers)
competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits
blue ocean strategy
an approach where firms seek to create and compete in uncontested _____ market spaces, rather than competing in spaces and ways that have attracted many similar rivals
when two or more markets, once considered distinctly separate, begin to offer features and capabilities. As an ex: the markets for mobile phones and media players are _____
when one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering
a product that allows a firm to tap into the complementary products, data, or user base of another product or service
the osbourne effect
when a firm preannounces a forthcoming product or service and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new term
wisdom of crowds
the idea that a group of individuals (the crowd) often consisting of untrained amateurs, will collectively have more insight than a single or small group of trained professionals
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