21 terms

MIS Chapter 2

competitive advantage
a product or service that an organization's customers place a greater value on than similar offerings from a competitor
Organizations must develop a strategy based on a new _____
competitive advantage
First mover advantage
occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
environmental scanning
the acquisition and analysis of events and trends in the environment external to an organization
Five Forces Model
helps determine the relative attractiveness of an industry
5 Forces of the Five Forces Model
Buyer Power, Supplier Power, Threat of substitute products or services, threat of new entrants, rivalry among existing competitors
Buyer Power
High when buyers have many choices of whom to buy from and low when their choices are few
Loyalty program
rewards customers based on the amount of business they do with a particular organizaiton
Supplier power
high when buyers have few choices of whom to buy from and low when their choices are many
supply chain
consists of all parties involved, directly or indirectly, in the procurement of a product or raw material
Business-to-business marketplace
an Internet based service that brings together many buyers and sellers
private exchange
a B2B marketplace in which a single buyers posts its needs and then opens the bidding to any supplier who would care to bid
reverse auction
auction format in which increasingly lower bids are solicited from organizations willing to supply the desired product or service at an increasingly lower price
threat of substitute products or services
high when there are many alternatives to a product or service and low when there are few alternatives from which to choose
switching costs
costs that can make customers reluctant to switch to another product or service
monetary cost
A switching cost need not have an associated ______
threat of new entrants
high when it is easy for competitors to enter a market and low when there are significant entry barriers to entering a market
entry barrier
product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
rivalry among existing competitors
high when competition is fierce in a market and low when competition is more complacent
business process
a standardized set of activities that accomplish a specific task, such as processing a customer's order
value chain approach
views an organization as a series of processes; each of which adds value to the product or service for each customer