MIS 302 Chapter Notes - Chapter 2: Competitive Advantage, Flip Video, Freshdirect
Document Summary
Chapter 2, strategy, competitive advantage, and industry analysis. Operational effectiveness: performing the same tasks better than someone else, ex. Barrier to entry factors that make it hard for new competitors to enter industry and compete: ex. Network effects, switching costs, scale, brand, distribution channels. Competitive advantage: have something that will make you higher than others. Strategic positioning: performing tasks differently than rivals or same tasks in different ways, gives competitive advantage cause hard to copy, ex. Freshdirect changed how grocery stores worked right way to win! Straddling attempts to occupy more than 1 person, while failing to match benefits of their more efficient and singular focused rivals. Fast follower problem: happe(cid:374)s (cid:449)he(cid:374) (cid:396)i(cid:448)als (cid:449)at(cid:272)h pio(cid:374)ee(cid:396)"s effo(cid:396)ts, lea(cid:396)(cid:374) f(cid:396)o(cid:373) thei(cid:396) (cid:373)istakes, a(cid:374)d (cid:272)(cid:396)eate the sa(cid:373)e (cid:271)ut (cid:271)ette(cid:396) thing at lower cost, ex. Tivo replaced by dvr; flip video cameras replaced when iphone put video no theirs. Switching costs: when consumers incur expense to move from one product or service to other.
