BMGT301- EXAM 1 (1,2,3,4,6, EXCEL) VERIFIED
STUDY GUIDE
Augmented Reality - Answers - layering images and other effects on top of pictures
ex. snapchat selfie filters that are being copied by facebook
Operational Effectiveness - Answers - Focusing on performing the same tasks as
competitors, only better.
* can lead to "Sameness" making the product a commodity
Michael Porter and margin eroding compeititon - Answers - a result of companies
defining themselves through operational effectiveness
begin to focus on lowering the price, with more features but they become equivalent
fast follower problem - Answers - savvy rivals watch pioneer's efforts and produce
comparable products at a lower cost
ex. Groupon has many rivals bc tech can be easily copies
Strategic Positioning - Answers - performing different activities than rivals or same
activities in a different way.
tech can be copied but also used to strengthen startegic differences
ex. Zara's value chain, implementing technology at v=key points in the chain
FreshDirect
Higher Inventory Turns - Answers - the firm is selling product faster, so it collects money
quicker than its rivals do
ex. FreshDirect, it is fresher so better quality than competitors
team inspect and sample about 400-500 samples of product, rating it 1-5 so customers
can make deicions
^ Zara taking customer opinions when designing new cltohes
Straddling - Answers - two markets (low margin store front and high margin delivery) are
unable to gain optimal benefits from either.
Fresh direct not prone to competition from grocery stores
entry costs are also high becuase of the unique value chain
Resource-based view of competitive Advantage - Answers - if firm wants to keep
competitive advantage, it has to control set of exploitable resources that have 4 critical
characterisitcs
1. Valuable
2. Rare
3. Imperfectly Imitable
4. Non substitute able
,dense wave division multiplexing (DWDM) - Answers - enabled existing fiber to carry
more transmissions than ever before
* these new assets weren't rare and each day seemed less valuable
Key takeaways from Ch2.1 - Answers - * tech is easy to copy, and alone rarely has
sustainable competitive advantage
* firms that leverage tech for strategic positioning use it to create competitive assets (diff
to copy)
* true sustainable advantage --> assets and business models that are simulateneously
valuable, rare, difficult to imitate, no substitutes
Imitation Resistant Value Chain - Answers - 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.
Value Chain - Answers - a set of interrelated activities that bring products or services to
market
how Freshdirect's value chain work together to create and reinforce competitive
advantage - Answers - Incumbants trying to copy would be straddling
late moving rivals will struggle, bc fresh direct's lead time= brand recognition, loyalty,
scale
Inbound logisitics - Answers - *primary part of value chain
* getting needed materials and other inputs to the firm from suppliers
Operations - Answers - *primary part of value chain
turning inputs into products/services
Outbound Logistics - Answers - *primary part of value chain
delivering products or services to customers, distribution centers, retailers, or other
partners
Marketing and Sales - Answers - *primary part of value chain
customer engagement, pricing, promotion, and transaction
Support - Answers - *primary part of value chain
service, maintenance, and customer support
Firm Infrastructure - Answers - * Secondary part of Value Chain
functions that support the whole firm
ex. gen management, planning, IS, Finance
HR management - Answers - * Seconday part of Value Chain
recruiting, hiring, training, n development
, tech and R&D - Answers - * Seconday part of Value Chain
new product/process design
Procurement - Answers - * Seconday part of Value Chain
sourcing and paraphrasing functions
SUpply chain management (SCM) - Answers - linking inbound and outbound logistics
with operations
Customer relationship management (CRM) - Answers - supporting sales, marketing,
and R&D
enterprise resource planning (ERP) - Answers - software implemented in modules to
automate the entire value chain
Vertically Integrated - Answers - produce own products rather than outsourcing
ex. Dell
Channel Conflict - Answers - When firms see distribution partners as potential rivals.
Taken firm PRIVATE - Answers - working w investors to buy up all stock publicly traded
Brand - Answers - The symbolic embodiment of all the information connected with a
product or service.
significant resource for comp adv
Viral marketing - Answers - online word-of-mouth marketing
consumers enlisted if a firm performs well
Scale Advantages - Answers - adv related to a firm's size
many business benefit from Economies of Scale - Answers - when the cost of
investmenet can be spread across increasing units of production or in serving a growing
consumer base
firms that benefit from scale economies are referred to as Scalable
ex. blue nile
BlueNile - Answers - lower operating costs by doing it digitally
30 day back guarantee= confidence for consumers
Barrier to Entry - Answers - the scale of tech investment required to run a business
discouaging new smaller companies
Switching Costs - Answers - consumers incur an expense to move from one product or
service to another
STUDY GUIDE
Augmented Reality - Answers - layering images and other effects on top of pictures
ex. snapchat selfie filters that are being copied by facebook
Operational Effectiveness - Answers - Focusing on performing the same tasks as
competitors, only better.
* can lead to "Sameness" making the product a commodity
Michael Porter and margin eroding compeititon - Answers - a result of companies
defining themselves through operational effectiveness
begin to focus on lowering the price, with more features but they become equivalent
fast follower problem - Answers - savvy rivals watch pioneer's efforts and produce
comparable products at a lower cost
ex. Groupon has many rivals bc tech can be easily copies
Strategic Positioning - Answers - performing different activities than rivals or same
activities in a different way.
tech can be copied but also used to strengthen startegic differences
ex. Zara's value chain, implementing technology at v=key points in the chain
FreshDirect
Higher Inventory Turns - Answers - the firm is selling product faster, so it collects money
quicker than its rivals do
ex. FreshDirect, it is fresher so better quality than competitors
team inspect and sample about 400-500 samples of product, rating it 1-5 so customers
can make deicions
^ Zara taking customer opinions when designing new cltohes
Straddling - Answers - two markets (low margin store front and high margin delivery) are
unable to gain optimal benefits from either.
Fresh direct not prone to competition from grocery stores
entry costs are also high becuase of the unique value chain
Resource-based view of competitive Advantage - Answers - if firm wants to keep
competitive advantage, it has to control set of exploitable resources that have 4 critical
characterisitcs
1. Valuable
2. Rare
3. Imperfectly Imitable
4. Non substitute able
,dense wave division multiplexing (DWDM) - Answers - enabled existing fiber to carry
more transmissions than ever before
* these new assets weren't rare and each day seemed less valuable
Key takeaways from Ch2.1 - Answers - * tech is easy to copy, and alone rarely has
sustainable competitive advantage
* firms that leverage tech for strategic positioning use it to create competitive assets (diff
to copy)
* true sustainable advantage --> assets and business models that are simulateneously
valuable, rare, difficult to imitate, no substitutes
Imitation Resistant Value Chain - Answers - 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.
Value Chain - Answers - a set of interrelated activities that bring products or services to
market
how Freshdirect's value chain work together to create and reinforce competitive
advantage - Answers - Incumbants trying to copy would be straddling
late moving rivals will struggle, bc fresh direct's lead time= brand recognition, loyalty,
scale
Inbound logisitics - Answers - *primary part of value chain
* getting needed materials and other inputs to the firm from suppliers
Operations - Answers - *primary part of value chain
turning inputs into products/services
Outbound Logistics - Answers - *primary part of value chain
delivering products or services to customers, distribution centers, retailers, or other
partners
Marketing and Sales - Answers - *primary part of value chain
customer engagement, pricing, promotion, and transaction
Support - Answers - *primary part of value chain
service, maintenance, and customer support
Firm Infrastructure - Answers - * Secondary part of Value Chain
functions that support the whole firm
ex. gen management, planning, IS, Finance
HR management - Answers - * Seconday part of Value Chain
recruiting, hiring, training, n development
, tech and R&D - Answers - * Seconday part of Value Chain
new product/process design
Procurement - Answers - * Seconday part of Value Chain
sourcing and paraphrasing functions
SUpply chain management (SCM) - Answers - linking inbound and outbound logistics
with operations
Customer relationship management (CRM) - Answers - supporting sales, marketing,
and R&D
enterprise resource planning (ERP) - Answers - software implemented in modules to
automate the entire value chain
Vertically Integrated - Answers - produce own products rather than outsourcing
ex. Dell
Channel Conflict - Answers - When firms see distribution partners as potential rivals.
Taken firm PRIVATE - Answers - working w investors to buy up all stock publicly traded
Brand - Answers - The symbolic embodiment of all the information connected with a
product or service.
significant resource for comp adv
Viral marketing - Answers - online word-of-mouth marketing
consumers enlisted if a firm performs well
Scale Advantages - Answers - adv related to a firm's size
many business benefit from Economies of Scale - Answers - when the cost of
investmenet can be spread across increasing units of production or in serving a growing
consumer base
firms that benefit from scale economies are referred to as Scalable
ex. blue nile
BlueNile - Answers - lower operating costs by doing it digitally
30 day back guarantee= confidence for consumers
Barrier to Entry - Answers - the scale of tech investment required to run a business
discouaging new smaller companies
Switching Costs - Answers - consumers incur an expense to move from one product or
service to another
