5 Written questions
4 Matching questions
- A transparent marketplace means that there is high product differentiation.
- 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.
- In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
- ________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.
- a Product differentiation
- b B
- c FALSE
- d TRUE
5 Multiple choice questions
- Mass customization
5 True/False questions
A firm can exercise greater control over its suppliers by having
A) more suppliers.
B) fewer suppliers.
C) global suppliers.
D) local suppliers.
Answer → C
The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as
A) the point of no return.
B) the law of diminishing returns.
C) supply and demand.
D) network inelasticity.
Answer → B
In the strategy of product differentiation, information systems are used to enable new products and services.
Answer → TRUE
Mass customization is a form of mass production.
Answer → TRUE
The law of diminishing returns always applies to digital, as well as traditional companies.
Answer → FALSE