MIS 302F Lecture Notes - Lecture 4: Inventory Turnover, Network Effect, Viral Marketing
12 Feb 2019
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Document Summary
Sometimes referred to as inventory turnover, stock turns, or stock turnover. The number of times inventory is sold or used during a given period. A higher figure means that a firm is selling products quickly. Attempts to occupy more than one position, while failing to match the benefits of a more efficient, singularly focused rival. The strategic thinking approach suggests 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 valuable, rare, imperfectly imitable, and non-substitutable. Also known as metcalfe"s law, or network externalities. When the value of a product or service increases as its number of users expands. Create value by making a market more efficient. Network effects increase exponentially, so winners can enjoy near-monopoly holds on a market. The symbolic embodiment of all the information connected with a product or service.
