Upgrade to remove ads
Comp and management final
Terms in this set (48)
three pillars of firm focus in Jeff Bezos's "Wheel of Growth"
low prices, customer experience, vast selection
The final stage of getting a product to the consumer- typically via a smaller delivery van or other vehicle
How is Amazon Marketplace offer two-sided network effects
Products or services that get more valuable as two distinct categories of participants expand( eg buyers and sellers)
The more products they offer will attract more customers. More products = more sellers
Cash Conversion Cycle
-Period between distributing cash and collecting funds associated with a given operations (eg sales)
-source of competitive advantage for Amazon because it is negative because it collects cash from customers BEFORE distributing funds to its suppliers
-because CCC is negative, it is interest free way to finance operations and invest in growth through "borrowing" from suppliers in the regular course of the e-commerce business
Problems that arise when organizations cannot easily convert assets to cash.
Cash is considered the more liquid asset- that is, the most widely accepted with a value understood by all
Pricing that shifts over time, usually based on conditions that change demand (eg charging more for scare items)
-a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience
-You have your own Amazon account that tracks your trends and suggests items for you based off purchases and searches (KT will see a lot of orange products and Al will see a lot of beanies.. Nick is perfect)
What is A/B testing? How is it used at Amazon
A randomized group of experiments and to collect data and compare performance among two options studied (A and B). A/B testing is often used in refining the design of technology products, and A/B tests are particularly easy to run over the internet on a Firm's website
Amazon's website is constantly changing and tracking users movements to see what is effective (compare your amazon vs a friends and it will be different)
Replacing computing resources- either an organization's or individual's hardware or software- with services provided over the internet
3 major categories of cloud computing
1. software as a service (SaaS)- firm subscribes to a third party software and receives a service that is delivered online (ex. Google Docs)
2. Platform as a service (PaaS)- cloud providers offer services that are used by customers to build their own applications on the provider's infrastructure (ex. Salesforce.com
3. infrastructure as a service (Iaas)- cloud providers offer services that include running the remote hardware and networking (ex. Amazon EC2)
What are a few benefits for firms that use cloud computing services/platforms
scalability, agility, reliability, consolidation, cost savings.
What are some of the risks associated with giving up control of certain infrastructure
security, outages, accountability, lock in, cost of change.
Metcalfe's Law or Network externalities
The value of a product increases with the increase in the number of users
The value derived from network effects comes primarily from what three sources?
Exchange- with more users, more comm of ideas
staying power- long term viability of a product
complementary benefits- products or services that add additional value to the network
Application Performance Interface
set of instructions a firm writes to help others use get the most use out of their websites (ex. Amazon explains how to write codes to sell your product on amazon.)
One sided markets
A market that derives its value from a single class of users
Instant messengers are one sided
Same side exchange benefits
benefits derived by interaction among members of a single class of participant
The value of IM grows when users can message each other
Two sided markets
network markets that comprise two distinct categories of participant, both of which are needed to deliver value for the network to work
The video game market is two sided
Because the rise in consumers drives the desires of software developers
Developers want to make games for consoles with the most users
Cross side exchange benefits
when an increase in the number of users on one side of the market creates a rise in the other side
Directly related to two-sided markets
A way to compete with an already established product by offering something new that is inherently superior from a tech perspective
This is pretty rare and difficult to achieve
When the value of users actually decreases the value of a product
For example the Sims game experienced serious problems when their servers could not handle the demand
This also always happens with HQ
Blue Ocean strategy
The strategy of entering a totally untapped market instead of one with a lot of competition
Works best when combined with early mover strategies
Convergence: when two or more markets, once considered distinctly separate, begin to offer similar features and capabilities
Think of smartphones - all these separate industries (games, GPS etc) became one
when a firm seeks to make an existing market a subset of its product offering
Think of the iPod becoming the iPhone
strategies for competing in markets with network effects
move early, subsidize adoption, alliance and partnerships (bring rivals together to take out a leader), leverage backward compatibility (having a product that can operate with old versions of software)
what we call social media today
new form of internet designed for collaboration
web 1.0 focused on static, transaction oriented services, web 2.0 more user controlled
Peer Production is when users collaborate to create content for a website
This saves the owners of the products lots of money on bandwidth, servers and storage
Peer production is leveraged to create services
For example Skype uses customers computers rather than a centralized IT resource center to forward calls
media outlets owned by the company. For example the Starbucks run Starbucks Twitter is Owned Media.
Online platforms besides ads intended to draw customers in. Imagine if Starbucks made a racy viral video, that would be inbound marketing.
Ads and Sponsorships. Did you see that dope Starbucks ad? That's paid media bitches
promotions that aren't paid for but are created by satisfied customers. Did that basic girl from your HS tweet about Starbucks again? If so, you're looking at Earned Media
What four criteria make a crowd "wise"
Offering a collective verdict
Polling a diverse crowd with the hopes of highlighting trends before they arrive
Economic system in which assets or services are shared between private individuals, either for free or for a fee, typically by means of the internet
Taking a job that would have normally been completed by an employee and giving it to a group of civilians to complete.
"the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call"
"three Rs" covered by a good social media policy
sneaky fourth r- reputation
the four Ms" of engagement and establishing an effective social media presence
Megaphone to send out messages from the firm
Magnet to attract inbound communication
when participants share access to products and services rather than having ownership. Shared resources can be owned by a central service provider (eg ZipCar) or provided by a community that pools available resources (eg AirBnb)
What do sharing economy and collaborative consumption have in common?
reducing transaction costs.
Creates value for sellers and purchasers
Foster market-based transactions
recirculation of goods, increased utilization of durable assets, exchange of services, or the sharing of productive asset
What are several factors that have contributed to the rise of the sharing economy
Many sharing firms were born during a prolonged, worldwide economic recessions
This encouraged new class of service people (many unemployed) to try offering service for hire
hat is the role of network effects in sharing economy markets
Exchange- source of value from additional people using it
Staying Power- the long-term viability of a product or service
Complementary benefits - products or services that add additional value to the primary product or service that makes up a network
positive influence created when someone finds out others are doing something
For data mining to work:
(1) the organization must have clean, consistent data, and (2) the events in that data should reflect current and future trends.
-How does Uber use data and APIs for competitive advantage? Recognize/provide 1—2 examples. -More details from sections 8.4 and 8.5could come in handy for an optional essay question on the sharing economy.
Surge pricing is example of real time supply and demand
Uber's Algorithm may be preventing Uber drivers from getting enough rides to qualify for incentives- saves uber money
sophisticated category of software applications known as artificial intelligence that leverage massive amounts of data so that computers can "learn"
Alphabet is a massive tech conglomerate started by the founders of Google
Google is largest piece, working on smart homes and self-driving cars, high speed internet
Google's stated mission
to organize the world's information and make it universally accessible and useful
Handy when trying to understand the broader plans of google
Also known as "market cap"
the value of the firm calculated by multiplying its share price by the number of shares
Google has the highest market cap in the world
You might also like...
MIS Exam 4
MIS Exam 2 terms
Test #2 ISM3011 Mgmt. Information System
Computers in Management Final Exam
Other sets by this creator
Computers and management midterm
End of Semester (Post quiz 3)
Other Quizlet sets
Behavioral, social, environmental and Psychosocial…
Final Econ Short Answer
Joshua, Chapter 4