Chapter 3 Definitions

Chapter 3 Definitions - Page 51: Competitive strategy the...

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Chapter 3 Page 46: Productivity paradox – the lack of evidence of an increase in worker productivity associated with the massive increase in investment in information technology. Page 48: Value chain – a network of value-creating activities. Margin – the difference between value and cost. Primary activities – in Michael Porter’s value chain model, the fundamental activities that create value – inbound logistics, operations, outbound logistics, marketing/sales, and service. Support activities – In Michael Porter’s value chain model, the activities that contribute indirectly to value creation – procurement, technology, human resources, and the firm’s infrastructure. Page 49: Five forces model – a model proposed by Michael Porter that assesses industry characteristics and profitability by means of five competitive forces – bargaining power of suppliers, threat of substitution, bargaining power of customers, rivalry among firms, and threat of new entrants.
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Unformatted text preview: Page 51: Competitive strategy the strategy an organization chooses as the way it will succeed in its industry. According to Michael Porter, there are four fundamental competitive strategies: cost leadership across an industry or within a particular industry segment, and product differentiation across an industry or within a particular industry segment. Page 52: Sustaining technologies changes in technology that maintain the rate of improvement in customer value. Page 53: Disruptive technologies products that introduce a very new package of attributes from the accepted mainstream products. Page 54: Switching costs the costs incurred by a customer of switching from one product or organization to another. Organizations often lock in customers by creating high switching costs (making it difficult or expensive for customers to switch)....
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This note was uploaded on 03/22/2010 for the course COMP SCI 1032 taught by Professor Goldstein during the Winter '10 term at UWO.

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Chapter 3 Definitions - Page 51: Competitive strategy the...

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