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Which of the following is NOT true regarding tech during the COVID-19 pandemic?
a) Screen time skyrocketed, boosting online and ad revenue.
b) Online grocery delivery saw demand double in just a few months.
c) Profits were pushed even higher at Apple, Microsoft, and Amazon; a triopoly that rakes in more than half of all digital ad revenue.
d) Streaming services boomed and e-commerce exploded.
e) Tech was responsible for the acceleration of vaccine development.
a) Screen time skyrocketed, boosting online and ad revenue.
b) Online grocery delivery saw demand double in just a few months.
c) Profits were pushed even higher at Apple, Microsoft, and Amazon; a triopoly that rakes in more than half of all digital ad revenue.
d) Streaming services boomed and e-commerce exploded.
e) Tech was responsible for the acceleration of vaccine development.
c) AFG
As we emerge from a global pandemic, tech has become even more deeply embedded into our lives. Our screen time has skyrocketed, boosting online ad revenue to make up over half of all ad spending for the first time ever, and pushing profits even higher at Google, Facebook, and Amazon; a triopoly that rakes in more than half of all digital ad revenue. Streaming services boomed, and e-commerce exploded. Online grocery delivery, a segment that had seen slow consumer adoption in the U.S. prior to COVID-19, saw demand double in just a few months. Tech was also front-and-center, responsible for the acceleration of vaccine development, allowing a handful of treatments to hit the market in record-shattering time, and almost certainly saving multimillions of lives.
As we emerge from a global pandemic, tech has become even more deeply embedded into our lives. Our screen time has skyrocketed, boosting online ad revenue to make up over half of all ad spending for the first time ever, and pushing profits even higher at Google, Facebook, and Amazon; a triopoly that rakes in more than half of all digital ad revenue. Streaming services boomed, and e-commerce exploded. Online grocery delivery, a segment that had seen slow consumer adoption in the U.S. prior to COVID-19, saw demand double in just a few months. Tech was also front-and-center, responsible for the acceleration of vaccine development, allowing a handful of treatments to hit the market in record-shattering time, and almost certainly saving multimillions of lives.
The growth of privacy and security concerns
Data analytics and business intelligence are creating a shifting knife-edge of privacy concerns that can shred corporate reputations if mishandled. And the pervasiveness of computing has created a set of security and espionage threats unimaginable to the prior generation.
Data analytics and business intelligence are creating a shifting knife-edge of privacy concerns that can shred corporate reputations if mishandled. And the pervasiveness of computing has created a set of security and espionage threats unimaginable to the prior generation.
Data analytics and business intelligence
Many organizations today collect and seek insights from massive datasets, which are often referred to as "Big Data." Data analytics and business intelligence are driving discovery and innovation, redefining modern marketing, and creating a shifting knife-edge of privacy concerns that can shred corporate reputations if mishandled.
Many organizations today collect and seek insights from massive datasets, which are often referred to as "Big Data." Data analytics and business intelligence are driving discovery and innovation, redefining modern marketing, and creating a shifting knife-edge of privacy concerns that can shred corporate reputations if mishandled.
Initial public stock offering, the first time a firm makes shares available via a public stock exchange, also known as "going public."IPOThe founding technology entrepreneurs behind many leading firms, such as Apple, Microsoft, and Facebook, got their start in their early 30s, leveraging university study and knowledge from their first post-college jobs to create disruptive new firms.FalseYouTube was started by _____ and _____Steve Chen and Chad Hurley were in their late twenties when they launched YouTube.We're in a golden age of tech entrepreneurship where ________________ means a startup can rent the computing resources one previously had to buy at great expense."the cloud" (or cloud computing)Another contributor to the easy with which young entrepreneurs can have success is low-cost distribution to massive markets worldwide. This is enabled by:App stores
App stores give code jockeys immediate, nearly zero-cost distribution to a potential market of hundreds of millions of people worldwide.Another reason that is fueling the boom in fast-growing technology services is ___________________, which, when done right, can virally spread awareness of a firm with nary a dime of conventional ad spending.Social media done right can virally spread awareness of a firm with nary a dime of conventional ad spending.What is considered the most influential piece of open source software was created by ________________ of ____________________Linus Torvalds; Finland
Finland's Linus Torvalds wrote the first version of the Linux operating system when he was just twenty-one. Today Linux has grown to be the most influential component of the open source arsenal, powering everything from cell phones to supercomputers.Also known as Sarbox or SOX; U.S. legislation enacted in the wake of the accounting scandals of the early 2000s. The act raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations. Although often criticized, SOX is also seen as raising stakes for mismanagement and misdeeds related to a firm's accounting practices.Sarbanes-Oxley ActSearch engine marketing (SEM), search engine optimization (SEO), customer relationship management (CRM), and personalization systems are all central components of the new _____ toolkit.marketing
Search engine marketing (SEM), search engine optimization (SEO), customer relationship management (CRM), personalization systems, and a sensitivity to managing the delicate balance between gathering and leveraging data and respecting consumer privacy are all central components of the new marketing toolkit.For today's collegiate job seeker, public participation in social media is strongly discouraged.FalseIn recent years, activity has dramatically declined in the areas of intellectual property, patents, piracy, and privacy.False
The number of U.S. patent applications waiting approval has tripled in the past decade, while China saw a threefold increase in patent applications in just five years.. The Harvard Business Review declared _______________ the "Sexiest Job of the Twenty-First Century."data scientistIn an effort to promote much-needed industry diversity, many tech firms and heavy users of tech have launched programs specifically targeted at skills development, hiring of women, and hiring of groups that would foster ethnic diversity of their workforce.False
Apple, Etsy, Square, Facebook, and Google are among the firms with programs to prep and encourage more women and minorities to pursue tech careers.n organization's _____ department ensures that systems get built and keep running. It also takes on strategic roles targeted at proposing solutions for how technology can give the firm a competitive edge.information systems
Nearly every large organization has its own information systems department. That group not only ensures that systems get built and keep running but also increasingly takes on strategic roles targeted at proposing solutions for how technology can give the firm a competitive edge.Experts in the area of _____ specialize in technology for competitive advantage.Strategy
Opportunities for programmers abound, particularly for those versed in new technologies, but there are also roles for experts in areas such as user-interface design (who work to make sure systems are easy to use), process design (who leverage technology to make firms more efficient), and strategy (who specialize in technology for competitive advantage)Technology experts in the area of _____ work to make sure systems are intuitive and easy to use.user-interface design
Opportunities for programmers abound, particularly for those versed in new technologies, but there are also roles for experts in areas such as user-interface design (who work to make sure systems are easy to use), process design (who leverage technology to make firms more efficient), and strategy (who specialize in technology for competitive advantage)Many firms are developing so-called "C-level" specialties in emerging areas with a technology focus, such as _____.CISO
Within a firm, technology specialists can rise to be chief information officer (CIO) or chief technology officer (CTO) - positions focused on overseeing a firm's information systems development and deployment. Many firms are also developing so-called "C-level" specialties in emerging areas with a technology focus, such as chief information security officer (CISO), and chief privacy officer (CPO).____ refers to a technology which can (among other things) be used to "track your luggage at the airport".RFID
As computing gets both faster and cheaper, it gets "baked into" all sorts of products and shows up everywhere, including in radio frequency identification (RFID) tags track your luggage at the airport.Moore's Law corollary that is taking place with people, too. As technology becomes faster and cheaper and developments like open source software, cloud computing, software as a service (SaaS), and outsourcing push technology costs even lower, tech skills are being embedded inside ___________ job functions.MoreMany business students aspire to careers in investment banking. Tech firms may very well influence their careers, given that the tech sector comprises a high number of __________________ and __________________.IPOs (initial public stock offerings); M&A (mergers and acquisitions) dealsIPO markets need new firms, and the tech industry is a fertile ground that continually sprouts new businesses like no other.TrueThis piece of U.S. legislation was enacted in the wake of the accounting scandals of the early 2000s. Although often criticized, it is also seen as raising stakes for mismanagement and misdeeds related to a firm's accounting practices.Also known as Sarbox or SOX, the Sarbanes-Oxley Act was enacted in the wake of the accounting scandals of the early 2000s. The act raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations. Although often criticized, SOX is also seen as raising stakes for mismanagement and misdeeds related to a firm's accounting practices.The tech-centric consulting practices of firms such as Deloitte Consulting and Accenture are larger than the accounting firms where they were initially launched.True
Deloitte's tech-centric consulting division is larger than the firm's audit, tax, and risk practices. At the time of its spin-off, Accenture was larger than the accounting practice at former parent Arthur Andersen.Firms are using social media to generate sales, improve their reputations, better serve customers, and innovate.True
The rise of social media is part of this blown-apart marketing landscape. Now all customers can leverage an enduring and permanent voice, capable of broadcasting word-of-mouth influence in ways that can benefit and harm a firm. Savvy firms are using social media to generate sales, improve their reputations, better serve customers, and innovate. Those who don't understand this landscape risk being embarrassed, blindsided, and out of touch with their customers.Advantages related to size.Scale advantagesThe path through which products or services get to customers.Distribution channelsprivate
As in "to go private" or "take a firm private." Buying up a publicly traded firm's shares. Usually done when a firm has suffered financially and when a turnaround strategy will first yield losses that would further erode share price. Firms (often called private equity, buyout, LBO, or leveraged buyout firms) that take another company private hope to improve results so that the company can be sold to another firm or they can reissue shares on public markets.privateA decision situation where one party has more or better information than its counterparty.information asymmetryThe set of activities through which a product or service is created and delivered to customers.Value ChainThe cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.Switching CostPerforming different tasks than rivals, or the same tasks in a different way.strategic positioningProgramming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides APIs to let developers write their own applications and websites that can send the firm orders.APIsWhen costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale (like many Internet firms) are sometimes referred to as being highly scalable.economies of scaleSometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during a given period. A higher figure means that a firm is selling products quickly.inventory turnsThe strategic thinking approach suggesting that if a firm is to maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources, that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable, and (4) nonsubstitutable.resource-based view of competitive advantagePerforming the same tasks better than rivals perform them.operational effectivenessLeveraging consumers to promote a product or service.viral marketingExists when savvy rivals watch a pioneer's efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate.fast follower problemThe symbolic embodiment of all the information connected with a product or service.BrandThird parties that promote a product or service, typically in exchange for a cut of any sales.affiliateA way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role.imitation-resistant value chainA technology that superimposes content, such as images and animation, on top of real-world images.augmented realityA technology that increases the transmission capacity (and hence speed) of fiber-optic cable. Transmissions using fiber are accomplished by transmitting light inside "glass" cables. In DWDM, the light inside fiber is split into different wavelengths in a way similar to how a prism splits light into different colors.dense wave division multiplexing (DWDM)Also known as Industry and Competitive Analysis. A framework considering the interplay between (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 of buyers, and (5) the bargaining power of suppliers.Porter's five forcesAttempts to occupy more than one position, while failing to match the benefits of a more efficient, singularly focused rival.straddlingA basic good that can be interchanged with nearly identical offerings by others—think milk, coal, orange juice, or to a lesser extent, Windows PCs and Android phones. The more commoditized an offering, the greater the likelihood that competition will be based on price.commodityFinancial performance that consistently outperforms industry averages.sustainable competitive advantageThe degree to which complete information is available.price transparencyCommonly known as patent trolls, these firms make money by acquiring and asserting patents, rather than bringing products and services to market.Non-Practicing EntitiesAlso known as Metcalfe's Law, or network externalities. When the value of a product or service increases as its number of users expands.network effectsTechnology means FreshDirect's labor costs are higher than rivals', but the firm makes up for this in other ways.False
FreshDirect's labor costs that are 60 percent lower than at traditional grocers.The phrase __________ refers to the number of times inventory is sold or used during the course of a year.Inventory turns, also known as stock turnover or stock turns. Higher inventory turns mean a firm is selling product faster, so it collects money quicker than rivals. And those goods are fresher since they have been in stock for less time.___ refer(s) to the payments made by suppliers to retailers for prime shelf space.Slotting fees refer to the payments by suppliers for prime shelf space, which is common in traditional retail.FreshDirect's tech-efficient model actually leads to lower margins than its traditional grocery peers, but the firm makes this up with a greater sales volume.
T/FFalse
FreshDirect does it all with margins in the range of 20 percent (to as high as 45 percent on many semiprepared meals), easily dwarfing the razor-thin 1 percent margins earned by traditional grocers.__ refers to attempts by an organization to occupy more than one position while failing to match the benefits of a more efficient, singularly focused rival.StraddlingFreshDirect should be safe from competition with traditional grocery stores (since they would be straddling two models instead of getting FreshDirect's singular efficiency), and new startups are likely going to struggle to match FreshDirect's scale and brand. However, Amazon presents a particularly strong challenger to FreshDirect. Why?Amazon has deep pockets and is aggressively seeking to expand into groceries
One threat successful firms face is the potential entry of even better-funded, growth-seeking rivals to try to squeeze them out of the current market. For years, the king of e-commerce, Amazon, has had its eye on tapping the $700 billion market for grocery retail.The resource-based view of competitive advantage states that for a firm to maintain sustainable competitive advantage it must control a set of exploitable resources that have four critical characteristics. What are these characteristics?(1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) nonsubstitutable.Sometimes technology can sound geeky and so technical that executives might think that it doesn't require managerial or investor attention. However, many investing in the telecom sector suffered from a lack of insight into how a key technology was impacting their industry. Telecom firms failed to anticipate the impact of a technology known as ____________ which enabled existing fiber to carry more transmissions than ever before.dense wave division multiplexing (DWDMA technology called _______enabled existing fiber to carry more transmissions than ever before. The end result: these new assets weren't rare and each day they seemed to be less valuable.dense wave division multiplexing (DWDM)__ is financial performance that consistently outperforms the industry average.Sustainable competitive advantage
Firms strive for sustainable competitive advantage - financial performance that consistently outperforms their industry peers. It can be difficult to sustain a competitive advantage because of new competitors with new copycat products which cause a cut in prices and costs.____ is performing different tasks than rivals or the same tasks in different ways.Strategic positioning______ can allow for businesses to be defensibly different, as opposed to operational effectiveness with its inherent risks of "sameness."Strategic positioningThe _____ problem exists when savvy rivals watch a pioneer's efforts, learn from their successes and missteps, and then enter the market quickly with a comparable or superior product at a lower cost.fast follower problemPerforming the same tasks better than how rivals perform them is known as ___operational effectivenessAccording to Michael Porter, many firms can suffer from margin eroding competition because they have defined themselves according to _____ rather than _____according to operational effectiveness rather than strategic positioning.When offerings are roughly the same, they are more commodity than differentiated.TrueT/F
Facebook leads social media innovation and rarely imitates products from competitors.False
Facebook apps routinely mimic Snap features, implementing some in as little as four months after their appearance in Snapchat, leading TechCrunch to quip Facebook's development mantra, formerly "Move Fast and Break Things" should now be "Move Last and Take Things."A firm's__________is the symbolic embodiment of all the information connected with a product or service.brand
A strong brand can also be an exceptionally powerful resource for competitive advantage. Consumers use brands to lower search costs, so having a strong brand is particularly vital for firms hoping to be the first online stop for consumers.T/F
Most successful firms typically leverage a single key resource for competitive advantage to create lasting, above-average industry profits.False
Oftentimes, a firm with an effective strategic position can create an arsenal of assets that reinforce one another, creating advantages that are particularly difficult for rivals to successfully challenge.The term _________________ refers to leveraging consumers to promote a product or service.Viral marketingIf a firm performs well, consumers can often be enlisted to promote a product or service(so-called viral marketing).Businesses benefit from economies of scale when the cost of an investment can be spread across increasing units of operational effectiveness or in serving a small supplier base.
T/FFalse
Businesses benefit from economies of scale when the cost of an investment can be spread across increasing units of production or in serving a growing customer base.Internet and tech-leveraging businesses are said to be highly scalable when profit margins often improve as firms leverage their infrastructure base across a growing number of customers.
T/FTRUE
Many Internet and tech-leveraging businesses are highly scalable since, as firms grow to serve more customers with their existing infrastructure investment, profit margins improve dramatically.Advantages related to a firm's size are referred to as _____.SCALE ADVANTAGES
Scale advantages are related to the size of a firm. Many Internet and tech-leveraging businesses are highly scalable since, as firms grow to serve more customers with their existing infrastructure investment, profit margins improve dramatically.____ are costs that customers incur when moving from one product to another.SWITCHING COST
Switching costs can involve money spent, investments in time, any data loss, and so forth.___ are products or services that are nearly identically offered from multiple vendors.COMMODITIES
Consumers buying commodities are highly price-focused since they have so many similar choices.The phenomenon of _________________________ exists when the value of a product or service increases along with a growing number of users.NETWORK EFFECTS
Network effects (sometimes called network externalities or Metcalfe's Law) exist when a product or service becomes more valuable as more people use it.A larger number of skilled workers who can use a given technology exists as a result of network effects.
T/FTRUE
Third-party add-on products, books, magazines, or even skilled labor are all attracted to networks of the largest number of users, making dominant products even more valuable.T/F
OpenTable's network effects are due entirely to the large number of consumers who use the service.FALSE
OpenTable has what strategists call a two-sided market. In the firm's case, both restaurants and diners create the strong network effects, which has resulted in one clear winner ahead of all other competitors. Diners are attracted to a service with more restaurants, restaurants are attracted to the service that has the most diners.The Apple Store represents a key distribution channel for the firm and the single most successful retail chain as defined by sales-per-square-foot in the United States.
T/FTRUE
Apple Stores show firm-crafted retail distribution channels at their most effective. Apple products offered at the Apple store give firm-trained employees an opportunity to present advantages of the company's unique products and how they work together, and offer free on-site customer support. This formula has resulted in the single most successful retail chain in the United States on a sales-per-square-foot basis.Non-Practicing Entities(NPEs), more commonly known as _________, hold intellectual property not with the goal of bringing novel innovations to market but instead in hopes that they can sue or extort large settlements from others.PATENT TROLLSWhich of the following describes the relationship between Apple's iOS and Google Maps.Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement.
Two years after the change, fewer than one in six iOS users had installed the Google Maps app on their devices, even though Apple's mapping product was initially considered inferior.Your firm had better lawyer up! Studies have shown that patents are the single most-important factor for enabling a firm to profit from innovations.FALSE
In a study of the factors that were critical in enabling firms to profit from their innovations, patents were only the fifth most important factor. Secrecy, lead time, sales skills, and manufacturing all ranked higher.Unlike rival offerings from Microsoft and Google, Apple mobile and computer operating systems only run on Apple hardware.TRUE
Apple is another firm that has distinguished itself through differentiation. Unlike rival offerings from Microsoft and Google, Apple mobile and computer operating systems only run on Apple hardware. This allows the firm to tightly integrate the experience across Apple products.The __________is the set of activities through which a product or service is created and delivered to customers.VALUE CHAIN
The value chain is the set of interrelated activities that bring products or services to market. Firms that craft an imitation-resistant value chain have developed a way of doing business that others will struggle to replicate, and in nearly every successful effort of this kind, technology plays a key enabling role.Which of the following observations is true?Internet businesses have relatively low barriers to entry
Some have correctly argued that the barriers to entry for many tech-centric businesses are low. This argument is particularly true for the Internet, where rivals can put up a competing Web site seemingly overnight. But it's absolutely critical to understand that market entry is not the same as building a sustainable business and just showing up doesn't guarantee survival.. Moving first pays off when lead time is used to create:critical resources for competitive advantage
Moving first pays off when the time lead is used to create critical resources that are valuable, rare, tough to imitate, and lack substitutes. Anything less risks the arms race of operational effectiveness..Which of the following is one of Porter's five forces?The five forces in Porter's framework are (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 of buyers, and (5) the bargaining power of suppliers.. A decision situation where one party has more or better information than its counterparty is known as _____.Information asymmetry
The Internet increases the bargaining power of buyers and lowers the bargaining power of suppliers in industries. Examples are auto sales and jewelry, where the products are commodities and the price transparency of the Internet counteracts a previous information asymmetry. This leads to customers often not knowing enough information about a product to bargain effectively.For providers of commodity products, how does the Internet typically impact price transparency and information asymmetry?. For providers of commodity products, how does the Internet typically impact price transparency and information asymmetry?Which of the following factors can weaken buyer bargaining power?High switching costs
Switching costs weaken buyer bargaining power. When buyers are reluctant to move to other products or services due to high switching costs, their bargaining power is lowered considerablyAttempts to occupy more than one position, while failing to match the benefits of a more efficient, singularly focused rival.StraddlingCompetitive advantage related to data which the firm can leverage and which rivals are not able to match.Data assetThe symbolic embodiment of all the information connected with a product or service.BrandSometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during a given period. A higher figure means that a firm is selling products quickly.inventory turnsA key concept in entrepreneurship and new product development that conveys the degree to which a product satisfies market demand. Successful efforts should be desired by customers, and scale into large, profitable businesses.product-market fitThe cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.switching costAhold's Peapod division had been doing exceptionally well prior to the FreshDirect acquisition, especially in the Midwest.
T/FFALSE
The firm closed Peapod operations in the Midwest due to poor performance. Though COVID-19 may have changed preferences, this is a likely demonstration that product-market fit for online grocery delivery didn't work in the midwestern United States.After setting up an initial order, recreating orders at a rival site represents a __________ that will deter happy shoppers from trying a rival.SWITCHING COST
After setting up an initial order, recreating orders at a rival site represents a switching cost that will deter happy shoppers from trying a rival. It takes time to learn a system and setup an order, and new firms will need to offer value beyond the service and also value that exceeds the cost to switch to try the new rival.T/F
One disadvantage that FreshDirect faces is that the data asset they can acquire per customer is not likely to be as strong as it would be for buyers who shop in person.FALSER
not likely to be as strong as it would be for buyers who shop in person.
Real-world grocers most likely do not have any data on customers who shop but pay cash. All of FreshDirect's orders are tracked—it's not only what you buy and how frequently, but also what's put in the cart, taken out, and also the time spent comparing rivals, etc.FreshDirect can leverage data by:
building more accurate customer experiences
using it in marketing campaigns
All of the above are correct.
using it in product recommendations
building more accurate machine learning modelsThe FreshDirect model allows the firm to build a data asset that traditional grocers can't match—they can build a customer profile, leverage this data in product recommendations and marketing campaigns, build more accurate customer experiences by experimenting and learning from results on-the-fly, and further mine data-driven learning for machine learning and other AI systems.T/F
Instacart is a threat to FreshDirect's order operations.FALSE
nstacart orders are one person per order, while FreshDirect's team assembles multiple orders on a given truck. Orders are picked and prepped in under 30 minutes for bulk delivery. This gives the firm significant economies of scale over rivals that rely on grocery store and human fulfillment.Which of the following was NOT a problem that occurred when FreshDirect moved from Queens to the Bronx?
The firm was hacked and valuable corporate and customer data was stolen. THIS ONE
The firm had no "fall back," in case it encountered problems with the new system.
The firm had not conducted sufficient testing.
The firm was flooded with complaints of broken eggs, spoiled fruit, and mispackaged or missed orders.
The firm switched orders immediately from the old system to the new system.The firm turned on the Bronx system without sufficient testing, or understanding problems that might occur from the larger facility with far more complex systems. When the system went live, the company switched orders immediately from the old system to the new system. There was no fall back in case it encountered problems and the firm was flooded with customer complaints.FreshDirect's problem-plagued move from Queens to the Bronx was severe enough to allow rivals to gain market share, while FreshDirect lost customers.
T/FTRUE
The firm's share of the New York grocery market fell from 66 percent to less than 46 percent. Even worse, this created an opening for rivals that happy customers were unlikely to try. Amazon saw their market share rise from 8 percent to 22 percent, and delivery from Instacart also increased.How was FreshDirect able to address problems that occurred in the Bronx rollout?They used a tool to consolidate system log files from the firm's disparate systems to identify where problems were occurring.
A tool provided by software vendor Splunk was deployed to gather log data in a central repository, making it easier to recognize, identify, and respond to problems throughout a mix of different systems.When faced with disgruntled customers due to system failure, it's often appropriate to address the customer's immediate problem, even if this means the firm takes a loss on the order.TRUE
While such customer-focused error handling is money-losing in the short run, it's potentially far less damaging than forgoing a lifetime of future orders from a churned-out customer who switches to a rival, never comes back, and who may share a FreshDirect horror story with others.FreshDirect suffered additional loss of sales and market share due to the COVID-19 crisis.FALSE
Web traffic was up 800 percent, and suburban orders, a customer base that typically required more persuasion to try online grocery ordering, doubled overnight.During the COVID-19 crisis, FreshDirect reduced selection to speed order fulfillment by minimizing complexity.TRUE
The firm quickly shifted operations in ways that could help maintain existing orders. In one example, the firm limited the variety of meat cuts so that its butcher staff could fulfill demand with an increased order pace.Personal digital assistants, an early name for handheld mobile computing devices.PDAs ZARACoordinating and enabling the flow of goods, people, information, and other resources among locations.logisticsOutsourcing production to third-party firms. Firms that use contract manufacturers don't own the plants or directly employ the workers who produce the requested goods.contract manufacturingThe set of activities through which a product or service is created and delivered to customers.value chainTransaction processing systems that capture customer purchases. Cash registers and store checkout systems are examples of point-of-sale systems. These systems are critical for capturing sales data and are usually linked to inventory systems to subtract out any sold items.point-of-sale (POS) systemThe amount earned from an expenditure.RETURN ON INVESTMENT ROIGoods to be further customized based on designer/manager collaboration.GREIGESmall chip-based tags that wirelessly emit a unique identifying code for the item that they are attached to. Think of RFID systems as a next-generation bar code.RFIDWhen a single firm owns several layers in its value chaiNvertical integrationThe concept where customers browse at physical retailers, but purchase products from lower-cost online rivals.showroomingThe organizational activities that are required to produce goods or services. Operations activities can involve the development, execution, control, maintenance, and improvement of an organization's service and manufacturing procedures.operationsAn integrated solution that combines five components: hardware, software, data, procedures, and the people who interact with and are impacted by the systeminformation system (IS)An approach to retail that offers consumers an integrated and complementary set of shop, sales, and return experiences (e.g., retail store, online, and sometimes even phone and catalog).omnichannelFor Zara, _________has made all the difference in its rise to dominate the fashion industry.TECHNOLOGY
The blend of technology-enabled strategy that Zara has unleashed deviates widely from the standard fashion retail playbook. Unlike rivals, Zara shuns advertising, rarely runs sales, and while nearly every other major player outsources manufacturing to low-cost countries, Inditex is highly vertically integrated, keeping huge swaths of its production process in-house. These counterintuitive moves are part of a recipe for success that's beating the pants off the competition.While competitors falter, Zara is undergoing one of the fastest global expansions the fashion world has ever seen, opening one store per day and entering new markets worldwide with ninety-six markets so far.
T/FTRUE
The chain's profitability is among the highest in the industry. The fashion director for luxury goods maker LVMH calls Zara "the most innovative and devastating retailer in the world."Why did it seem that Gap was plagued by a lack of accurate data?By using contract manufacturers and seasonal orders, the firm was forced to place bets on guesses of what customers would be interested in, months in advance.
Gap, like most fashion retailers place orders for a seasonal collection months before these lines make an appearance in stores. While overseas contract manufacturers may require hefty lead times, trying to guess what customers want months in advance is a tricky business. See Drexler's purple leather pants problem.. In retail, and the fashion industry, in particular, there is a saying: inventory = ___DEATH
Have too much unwanted product on hand and you'll be forced to mark down or write off items, killing profits.Which of the following has been a consistent source of concern related to the use of contract manufacturers in the apparel industry?Poor practices put workers at risk and threaten the brand of partners leveraging their services.
Global competition among contract firms has led to race-to-the-bottom cost-cutting measures. Too often, this means that in order to have the low-cost bid, contract firms skimp on safety, ignore environmental concerns, employ child labor, and engage in other ghastly practices.Contract manufacturing is the process by which:production is outsourced to third-party firms.
Contract manufacturing refers to outsourcing production to third-party firms. Firms that use contract manufacturers do not own the plants or directly employ the workers who produce the requested goods.The apparel industry in particular has been plagued by accusations of sweatshop labor and unsafe working conditions.
T/FTRUE
The apparel industry in particular has been plagued by accusations of sweatshop labor and unsafe working conditions. Incidents such as the Spring 2013 Bangladesh Rana Plaza disaster, which killed more than 1,100 people in the collapse of an illegally constructed eight-story building housing multiple contract garment factories, underscore the human toll of unacceptable contract manufacturing practices. Walmart, The Children's Place, and Benetton were among the firms said to have purchased clothing from firms operating in Rana Plaza.The Fair Factories Clearinghouse provides resources for:locating low-cost contract manufacturers.sharing audit information on contract manufacturers.Coordinating and enabling the flow of goods, people, information, and other resources among locations is known as _____.LOGISTICSZara's efficiency allows it to ___markdowns.DECREASE
The fashion industry average markdown ratio is approximately 50 to 70 percent, and less than 1 percent of JCPenney revenue came from items bought at full price. By contrast, at Zara, 85 percent of products are sold without a discount. Markdowns are usually bad since they mean goods are selling below their full retail price.T/F
Zara saves money on advertising in part because limited runs of unique items encourage repeat visits, lessening the need to run sales and ad campaigns.TRUE
The constant parade of new, limited-run items also encourages customers to visit often. The average Zara customer visits the store seventeen times per year, compared with only three annual visits made to competitors. Even more impressive, Zara puts up these numbers with almost no advertising.Zara's limited production runs cause customers to:buy the products right away at full price
Limited runs allow Zara to cultivate the exclusivity of its offerings and encourage customers to buy immediately and at full price. The constant parade of new, limited-run items also encourages customers to visit often.T/F
Zara sees the link between online and off-line sales as being fluid. Thus, they have a system that blends online and off-line sales.FALSE
Inditex sees e-commerce as a critical part of the firm's omnichannel strategy, which blends online and offline sales in ways that best benefit the customer. The company sees the link between online and off-line sales as being so fluid, it doesn't even breakout online sales as a separate category.T/F
Zara is able to save costs in many parts of its business, but the firm's highly automated, tech-centric model does mean tech spending is heavier than rivals. Despite this, the tradeoff is worth it, given other savings.FALSE
Whether measured by IT workers as a percentage of total employees or total spending as a percentage of sales, Zara's IT expenditure is less than one-fourth the fashion industry average.The amount earned from an expenditure is known as:ROI
Financial considerations should forecast the ROI of any organizational expenditure (i.e., what will we get for our money and how long will it take to receive a payback?).Which of the following refers to an integrated solution that combines the five components of hardware, software, data, procedures, and people?INFORMATION SYSTEM
An information system refers to an integrated solution that combines five components: hardware, software, data, procedures, and the people who interact with and are impacted by the system.What are the five components of an information system?Hardware, software, data, people, and proceduresDuring the COVID-19 pandemic, Zara:
swers
mobilized staff to retrieve clothes and accessories from store shelves and stockrooms so that these products could be used to fulfill e-commerce orders.mobilized staff to retrieve clothes and accessories from store shelves and stockrooms so that these products could be used to fulfill e-commerce orders.
With 88 percent of its stores closing during spring 2020, Inditex sales nosedived. A 44 percent drop in quarterly sales led to the firm's first ever loss as a public company. However, because of the strength and responsiveness of the firm's integrated inventory and omnichannel systems, the damage was not nearly as bad as its rivals'. The firm's strengthened e-commerce efforts, which had grown to account for 14 percent of sales pre-pandemic, shot up 95 percent in April 2020, and increased 50 percent that same quarter. The RFID-powered ability of the firm to surface inventory regardless of its location helped the company shift inventory from closed stores so that it could be used to meet increased e-commerce demand. The firm quickly mobilized staff to retrieve clothes and accessories from store shelves and stockrooms so that these products could be used to fulfill e-commerce orders.__ are handheld computing devices meant largely for mobile use outside an office setting.PDAS
Personal digital assistants (PDAs) are handheld computing devices meant largely for mobile use outside an office setting. PDAs were initially (non-phone) handheld computing devices, but sophisticated computing capabilities have now been integrated into other mobile device classes such as smartphones and tablets.Zara encourages employee use of technology by tying employee salaries to sales performance.TRUE
anagers are motivated to use in-store systems because they have skin in the game. The firm is keen to reward success—as much as 70 percent of salaries can come from commissions.What are the two information systems Zara uses to gather data in-store, and what is the purpose of the data gathered by each.PDAs gather information on customer preferences, POS gathers information on salesTransaction processing systems that capture customer purchases are known as:point-of-sale systems.
Cash registers and store checkout systems are examples of point-of-sale systems. These systems are critical for capturing sales data, and are usually linked to inventory systems to subtract out any sold items.Zara designs follow evidence of:CUSTOMER DEMAND
Rather than create trends by pushing new lines via catwalk fashion shows, Zara designs follow evidence of customer demand. Data on what sells and what customers want to see goes directly to "The Cube," where teams of some three hundred designers crank out an astonishing thirty thousand items a year.Zara's efficiency is due, in part, because technology allows the firm to manufacturers fewer unique fashion items than rivals like Gap and H&M.
T/FFALSE
The average time for a Zara concept to go from idea to appearance in store is fifteen days; compare that to their rivals, who receive new styles once or twice a season. Smaller tweaks arrive even faster. To put that in perspective, Zara is twelve times faster than Gap despite offering roughly ten times more unique products! At H&M, it takes three to five months to go from creation to delivery—and they're considered one of the best.When a single firm owns several layers in its value chain, it is said to be:VERTICAL INTEGRATEDthe set of activities through which a product or service is created and delivered to customers.VALUE CHAINWhich of the following help Zara respond quickly to fashion trends?
PDA data
Vertical integration
All of the above
Robots to cut fabric
Robots to dye fabricPDA and related data tell the firm what customers at a given location want to see on shelves. The firm is able to be so responsive due to a competitor-crushing combination of vertical integration. Fabric is cut and dyed by robots in twenty-three highly automated factories.Zara makes sure that, before items depart a warehouse for stores, all clothes are ironed in advance and packed on hangers, with security and price tags affixed. This is done to ensure that:the firm's celebrity partner designers get feedback on where their fashions are going and the price items are sold at, worldwide.employees spend more time focusing on customers.
In Zara factories, clothes are ironed in advance and packed on hangers, with security and price tags affixed. This system means that instead of wrestling with inventory during busy periods, employees in Zara stores simply move items from shipping box to store racks. Therefore, they can spend most of their time on value-added functions, such as helping customers find what they want.ame the technology that makes Zara's inventory smart is called _________.vertical integrationRFID SECURITY TAGS
wirelessly emit a unique identifying code for the individual item that they are attached to.Firms such as Walmart and JCPenny have had greater success deploying RFID because they work so closely with a diverse group of product suppliers.
T/FFALSE
Firms from Walmart to JCPenny have struggled to effectively implement RFID, but Zara's vertical integration is an advantage here, as well. Since the entire supply chain is under Zara control and all items flow through one of two warehouses, Zara can affix tags to all products before sending them out to stores (a challenge for other retailers that have third-party suppliers ship to multiple warehouses or directly to stores).. Which of the following is true about Zara RFID use?
Tags are removed at the point of purchase to protect customer privacy.
All of the above
Vertical integration allows the firm to reuse tags for big savings.
It can help retail locations rapidly take inventory.
It can help staff identify the location of items a customer may be interested in, even if it's at another store or distribution center.ALL
RFID lets Zara know where products are: in store, in a nearby store, from the distribution center, or Zara.com. RFID tags also allow Zara staff to take in-store inventory four times as often as the pre-RFID rate. Stores send tags back to Zara warehouses for reuse. Although tags only cost ten cents, with hundreds of millions of items sold each year, these costs easily add up. Stores remove tags when customers buy items (avoiding any privacy concern that customer goods may be electronically tracked post-purchase).Firms often hedge the risks that could shut down operations at a given facility by:spreading facilities throughout the globe.
Firms often hedge risks that could shut down operations-think weather, natural disaster, terrorism, labor strife, or political unrest-by spreading facilities throughout the globe.. Zara also saves money by simplifying pricing, easily allowing items to be shifted from store to store with inventory reallocated as needed.
T/FFALSE
Zara is able to make up some cost increases by raising prices overseas (when the euro is strong vs. the dollar, items can cost 40 percent or more than in Spain).Zara's business model is hedged in such a way that the company will be able to sustain its sales volumes even in an economic downturn
T/FFALSE
When the economy falters, consumers simply buy less and may move a greater share of their wallet to less-stylish and lower-cost offerings from deep discounters like Walmart.Zara has been able to eliminate costs related to advertising, inventory missteps, and markdowns because of _____.technology applied in ways that deliver a return on investment
Technology helps Zara identify and manufacture the clothes customers want, get those products to market quickly, and eliminate costs related to advertising, inventory missteps, and markdowns.In this context, it refers to an extremely large selection of content or products. The long tail is a phenomenon whereby firms can make money by offering a near-limitless selectionLONG TAILThe price paid when divisions of the same company transact with each other.TRANSFER PRICINGA classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience.COLLABORATIVE FILTERINGCosts that do not vary according to production volume.FIXED COSTA set of databases designed to support decision-making in an organization.data warehouseThe rate at which customers leave a product or service.churn rateWhen increasing numbers of users lower the value of a product or service.congestion effectCoopetition or frenemies is a situation where firms may both cooperate and compete with one anothERcoopetitionis a set of programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides application programming interfaces (APIs) to let developers write their own applications and websites that can send the firm orders.An API (application programming interface)A randomized group of experiments used 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, Google, and Facebook are among the firms that aggressively leverage hundreds of A/B tests a year in order to improve their product offerings.A/B TESTTechnology used in media compression. Codec stands for coder-decoder (or think compression-decompression). A given codec standard will make files smaller for storage and streaming by doing things like removing adjacent identical colors and replacing this with math to draw the image without storing the redundant bits. A codec might also remove sounds that are canceled by other noises in a recording, or delete sounds that can't be heard by the human ear. The process of compressing files is known as encoding, and decompressing files is called decodingcodecThe costs associated with each additional unit producedMARGINAL COSTA phenomenon, akin to congestion effects for attention, where consumers avoid selection decisions with an overwhelming number of choices.decision fatigueExists when a firm's potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors.channel conflictSometimes called "colos," or carrier hotels; provide a place where the gear from multiple firms can come together and where the peering of Internet traffic can take place. Equipment connecting in colos could be high-speed lines from ISPs, telecom lines from large private data centers, or even servers hosted in a colo to be closer to high-speed Internet connections.16 of 21
Restart‹ PrevNext ›Flipcolocation facilitiesA limit imposed by the ISP (e.g., a cable or telephone company) on the total amount of traffic that a given subscriber can consume (usually per each billing period).bandwidth capsRemoving an organization from a firm's distribution channel. Disintermediation collapses the path between supplier and customer.disintermediationA type of artificial intelligence that leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming.machine learningA U.S. Supreme Court ruling stating that an individual who knowingly purchases a copy of a copyrighted work from the copyright holder receives the right to sell, display, or otherwise dispose of that particular copy, notwithstanding the interests of the copyright owner.First Sale DoctrineMaking content available to a given distribution channel (in theaters, through hospitality channels like hotels and airlines, on DVD, via pay-per-view, via pay cable, and later broadcast on commercial TV) for a specified time window, usually under a different revenue model.windowingNetflix has had to craft different kinds of _________________ to maintain its spot as the world's largest streaming servicecompetitive advantages2. Netflix growth surged as the tech-enabled strategic assets Hastings built hammered Blockbuster into bankruptcy and sent Walmart fleeing the market.TRUE
Netflix growth surged as the tech-enabled strategic assets Hastings built hammered Blockbuster into bankruptcy and sent Walmart fleeing the market. Netflix's profits, customer base, and stock went on to hit all-time highs.Transitioning the Netflix to a future where Internet streaming dominates and DVDs go away resulted in a smooth transition and record profits
T/F.FALSE
Concerns over transitioning the firm to a future where Internet streaming dominates and DVDs go away resulted in a painful series of self-inflicted wounds that left the firm reeling. A poorly communicated repricing scheme was followed by a botched attempt to split the firm into two separate services. This caused an exodus of nearly 1 million customers in three months, a collapse of the firm's share price, and calls for Hastings's resignation.Netflix's service is now available in every country on the planet, except for:North Korea, China, and SyriaRelate your understanding of Netflix dominance in the DVD-by-mail business to what you learned in the Strategy and Technology chapter: what three resources for competitive advantage did Netflix create in this market that rivals Blockbuster and Walmart couldn't match?Brand, scale, data asset
Netflix was able to create critical and mutually reinforcing resources: brand, scale, and a data asset that rivals simply could not match.Which of the following was responsible for luring firms such as Walmart and Blockbuster into direct competition with Netflix?NETFLIX IPO
Reed Hastings once said his biggest strategic regret was taking his firm public too early. Once public, the firm was required to disclose its financial position, and the whole world soon learned that Netflix was a on a profit march with a remarkable growth trajectory. The news was like blood in the water, attracting two very big sharks. First came Blockbuster, a firm with 40 million card-carrying customers and a name synonymous with home video rental. Following Blockbuster was Walmart, not just a Fortune 500 firm, but Fortune One—the biggest firm in the U.S. as ranked by revenues.Why did Hastings regret going public as early as he did?Going public required the firm to reveal financial results, sharing its success with the world and attracting rivals.
Reed Hastings once said his biggest strategic regret was taking his firm public too early. Once public, the firm was required to disclose its financial position, and the whole world soon learned that Netflix was on a profit march with a remarkable growth trajectory.Advertising can build _____, but brands are built through _____awareness; customer experienceWhile some debate the size of the "long tail," one fact that is critical to keep above this debate is thatselection attracts customers and the Internet allows large-selection inventory efficiencies that offline firms can't match.. The phenomenon whereby firms can make money by selling a near-limitless selection of less popular products is known as _____.LONG TAIL11. Which of the following is a significant advantage of the long tail model on which Netflix is based?SCALE ADVANTAGE
Netflix's appeal came from the scale of the firm's entertainment selection. Nearly limitless selection allows Internet retailers to leverage what is often called the long tail. While some debate the size of the profitable tail, two facts are critical to keep regarding this debate: (1) selection attracts customers, and (2) the Internet allows large-selection inventory efficiencies that offline firms can't match.Firms enjoy _____ when they are able to leverage the cost of an investment across increasing units of production.SCALE ECONOMIES
Even if rivals have identical infrastructures, the more profitable firm will be the one with more customers.13. The three sources of scale advantage which the Netflix DVD-by-mail business had over rivals imitating its effort were:warehouse network, customer base, and long tail selection.
Netflix enjoyed threefold scale advantages (distribution centers, selection, and customers).Netflix enjoyed threefold scale advantages (distribution centers, selection, and customers).Although Netflix had a larger distribution network than rivals, other firms could build a similarly large warehouse network. What additional advantage made this more profitable for Netflix than newcomers?The size of the firm's customer base, which enabled economies of scale.
While Netflix's warehouse network and product selection were greater than those of rivals, these assets could be bought by a competitor with a big wallet. But if one firm has far more customers than the other, then the bigger firm has a better cost structure and better profit prospects and should be able to offer better pricing. Scale economies are achieved by firms that leverage the cost of an investment across increasing units of production.Which term refers to a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience?Collaborative filtering
Collaborative filtering refers to a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience. It can be used to customize the display of a Web page for each user.___ is a marketing term referring to the rate at which customers leave a product or service.CHURN RATE
Churn is a marketing term referring to the rate at which customers leave a product or service. A low churn is usually key to profitability because it costs more to acquire a customer than to keep one. The longer a customer stays with the firm, the more profitable they become and the less likely they are to leave.The shift from physical to digital product offerings is often described as a shift fromATOMS TO BITST/F
Netflix has been able to rapidly add the streaming business with similar cost economics and product offerings because the fundamentals of this business are very similar to the firm's DVD-by-mail business, just streamed over the Internet.FALSE
The business of streaming video is radically different from DVD-by-mail in several key ways, including content acquisition costs, content availability, legal and regulatory environments, revenue and expansion opportunities, potential partners, competitors, and their motivation.Marketing managers need to understand key assets they need for the digital age. What key asset did Netflix embarrassingly fail to secure when rebranding the DVD-by-mail business as Qwikster?TWITTER ACCOUNT
At the time of the rebranding announcement, Netflix had secured the domain Qwikster.com, but not the Twitter handle @Qwikster. The latter was owned by a guy whose drug-referencing, foul-mouthed tweets were accompanied by a profile picture of a pot-smoking Elmo from Sesame Street.When firms find themselves in situations where they are both competitors and partners, the situation is called _____.coopetition
To deliver streaming video, Netflix actually uses computers provided by the cloud computing services of Amazon (making Amazon and Netflix both partners and competitors, a phenomenon often referred to as coopetition, or frenemies).Economists often consider that the marginal costs of digital goodsEFFECTIVELY 0
It's often argued that the marginal cost of digital goods is effectively zero. That's because computers can make limitless duplicates of digital content—no material required—and the Internet can be used to almost instantly distribute content to customers.T/F
The "First Sale Doctrine" refers to an over-100-year-old U.S. Supreme Court ruling that allows Netflix to stream a nearly unlimited catalog of movies and television programs.FALSE
This ruling states that a firm can distribute physical copies of legally acquired copyright-protected products. But the First Sale Doctrine applies only to the atoms of the physical disc, not to the bits needed in streaming, so Netflix can't offer Internet streaming without separate streaming licenses.. Which of the following factors shifts bargaining power to the suppliers of streaming video content?
A growing number of buyers increases demand.
All of the above
The content is most often unique and highly differentiated.
Streaming goods are licensed for a fixed time period vs. DVDs that can be used as long as they are owned.
A small number of suppliers controls content, creating an oligopoly.Video content is perfectly differentiated, and as we learned in the Strategy and Technology chapter, providers of differentiated goods also have stronger bargaining power. There are only a small number of firms offering high-demand content, essentially operating as an oligopoly with concentrated supplier power. Over the past several years, the ranks of bidders jostling elbows at the streaming media negotiating table has increased. When you buy a DVD, you own it for life, but streaming costs are usually licensed for a limited time period.An industry practice whereby content is available to a given distribution channel for a specified time period, usually under a different revenue model is known as _____.WINDOWING
Title availability is also complicated by a distribution practice known as windowing. Content is available to a given distribution channel (in theaters, through hospitality channels like hotels and airlines, on DVD, via pay-per-view, via pay cable, then broadcast commercial TV) for a specified time window, usually under a different revenue model (ticket sales, disc sales, license fees for broadcast).Some firms like HBO steadfastly refuse to offer Netflix streaming rights.
T/FTRUE
Some firms steadfastly refuse to offer Netflix streaming rights. HBO has never licensed to Netflix. Who would pay $15 for HBO's service if Netflix could offer the same content and more for just $9?T/F
Netflix doesn't actually own full, worldwide rights to many "Netflix Original" titles like House of Cards.TRUE
The first batch of Netflix-backed originals (including House of Cards and Orange Is the New Black) gave the firm exclusive first-window U.S. streaming rights, but they are actually licensed from other studios. Since Netflix doesn't outright own these properties, early seasons of House of Cards are available from competitors. Streaming House of Cards internationally will require Netflix to pay up again.Removing an organization from a firm's distribution channel thereby collapsing the path between supplier and customer is known as _____.DisintermediationNetflix uses its substantial data asset to:recommend movies.:
evaluate potential licensing deals.
drive software redesign and improve the user experience.
none of the above
all of the above
tailor promotions of existing content.This data asset is used to make more accurate recommendations, improve user interface design, and help the firm determine the appropriate cost for acquiring content. It can even shape creative decisions in original program offerings.Streaming content has increased a viewing habit of consumer multiple episodes or whole seasons of programing, known as:BINGE WATCHING
Consider the phenomenon of binge-watching, or viewing several episodes of a program in a single sitting. As Sarandos puts it, "In the world of weekly serialized television you get fifty minutes of joy watching a show and then 10,000 minutes of waiting for the next one." Over that time, users can lose track of characters and complex plot lines, and they may be distracted, miss an episode, and stop viewing all together.T/F
France and China demonstrate that Netflix will have an even easier time expanding internationally than in the US, as these nations have less restrictive laws as a result of not having Hollywood-sized domestic media industries.FALSE
Legal issues can present a country-by-country challenge as well. For example, French law requires a wait time of three years after a film is released in theaters before it can be streamed online; it also require distributors to invest in local production. Nations with heavy censorship laws (like China) will also pose challenges.T/F
Netflix doesn't just see growth as a way to advance profitability; it sees it as a vital competitive asset to keep competitors at bay.TRUE
Netflix doesn't just see growth as a way to advance profitability; it sees it as a vital competitive asset to keep competitors at bay. Netflix can spend so much more than competitors because it has more subscribers than rivals. And while Amazon's content spend has been about two-thirds of Netflix’s bill, Netflix is seeing roughly five times more usage.T/F
To avoid the hardware cost of getting its content to the television, the firm developed a software platform and makes this available to manufacturers seeking to include Netflix access in their devices.TRUE
Netflix eventually decided to think beyond one hardware alternative and instead recruit others to provide a wealth of choice. The firm developed a software platform and makes this available to manufacturers seeking to include Netflix access in their devices. It was an especially smart move given the explosion in content watching that occurs on screens that are not televisions, and Netflix tools made it easier to build apps.Much of the infrastructure used by Netflix to deliver streaming is actually provided by Amazon.
T/FTRUE
It might surprise many to hear that the bulk of the Netflix computing infrastructure runs on Amazon's servers. But using Amazon Web Services has enabled Netflix to grow its services by millions of customers without adding any data center capacity since 2008.The kind of data analysis that refines Netflix algorithms is largely done via _____machine learning
The kind of data analysis that refines Netflix algorithms is largely done via machine learning. In this approach, more and better categorized data is regularly examined by software that improves predictive power without additional human intervention.___ refer(s) to a limit imposed by the Internet service provider on the total amount of traffic that a given subscriber can consume.BANDWIDTH CAPS
Bandwidth caps place a ceiling on a customer's total monthly consumption (users can usually bump up the ceiling, but they have to pay to do it).A set of databases designed to support decision-making in an organization is known as:DATA WAREHOUSE
A pool of data accessible for human-led query and analytics is often referred to as a data warehouse.T/F
Channel conflict is when firms see distribution partners as potential rivals.TRUE
Channel conflict exists when a firm's potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors. When AT&T announced they would release its Warner Studios 2021 first-run titles simultaneously in theaters and to its streaming customers, cinema chain operators screamed channel conflict with a supplier that's now competing directly with their ticket sales.
Verified questions
1/2