Buyer Power
when buyers have many choices of whom to buy from and low when their choices are few (To reduce an organization must make it more attractive for customers to buy from it instead of competition)
Competitive Advantage
A product or service that an organization's customers place a greater value on than similar offerings from a competitor
Demand Chain
sense and respond" view suggests that planning starts with the needs of the target customer
Entry Barrier
a product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive. An obstruction that makes it difficult to enter a particular market.
First-mover Advantage
occurs when an organization can significantly impact its market share by being first to market with a competitive advantage
Loyalty Program
Rewards customers based on eh amount of business they do with a particular organization. LOWERS BUYER POWER
Primary Value Activities
Which part of the value chain acquires raw materials and manufactures, delivers, markets, sells, and provides after-sales services?
Rivalry Among Existing Competitors
High when competition is fierce in a market and low when competition is more complacent
Supplier Power
high when buyers have few choices of whom to buy from and low when their choices are many
Supply Chain
Consists of all parties involved, directly or indirectly, in the procurement of a product or raw material
Support Value Activities
activities that support the primary value activities, e.g. firm infrastructure, HR, Tech development, procurement
Switching Costs
costs that can make customers reluctant to switch to another product or service. LOWERS BUYER POWER
Threat of New Entrants
high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. LOWERS SUPPLIER POWER
Threat of Substitute Products or Services
High when there are many alternatives to a product or service and low when there are few alternatives from which to choose
Value Creation
performing activities that increase the value of goods or services to consumers
Business Process
a standardized set of activities that accomplish a specific task, such as processing a customer's order
Value Chain
Views an organization as a series of processes, each of which adds value to the product or service for each customer.
Porter's Five Forces
Help determine the relative attractiveness of an industry and includes: 1. Buyer Power 2. Supplier Power 3. Threat of substitute products or services 4. Threat of new entrants 5. Rivalry among existing competitors.
Porters 3 Generic Strategies
broad cost leadership, broad differentiation, and a focused strategy.
1.A jewelry store focusing on engagement sets located next to the BYU campus would most likely be: a. A differentiator b. A low cost provider c. A niche marketer d. Highly profitable
C) A niche marketer
2. You are a pharmaceuticals company. The patent protecting your most profitable drug is set to expire. Which of the "Five Forces" is most likely impacted by this event?
a. Buyer Power,b. Rivalry among Existing Competitors, c. Supplier Power, d. Threat of
D) Threat of New Entrants
What does the Five Forces Model help determine the relative attractiveness of? A company, An industry, An investment, An organization
An Industry
Which of the following forces is commonly reduced through the use of a loyalty program?
Rivalry among existing competitors, Buyer power , Supplier power, Threat of new entrants
Buyer Power
What is high when competition is fierce in a market and low when competition is more complacent? Buyer power, Rivalry among existing, competitors, Supplier power, Threat of substitute products or services
Rivalry Among Existing Competitors
Which part of the value chain acquires raw materials and manufactures, delivers, markets, sells, and provides after-sales services? Primary value activities, Secondary value activities, Support value activities, None of the above
Primary Value Activities
Kid-to-Kid Stores gives customers a frequent shopper card. When you purchase something from the Kid-to-Kid Store, they sign off on each $10 you spend. You may redeem the full card on your next visit for 20% off your entire purchase. This is an example of
Buyer Power
Jenny's Floral and Gift is a small business located in Ely, NV. There is only one office supply store in town. Jenny often orders office supplies from eBay and other Internet sites to get them cheaper. This is an example of trying to reduce
Buyer power, R
Supplier Power
RainLeaf developed software for a very unique market, dental labs. The software allows labs to take orders, track each step of the development process, and send and bill completed crowns. The software also allows dentists to track on the Internet how thei
Focused Strategy