18 Questions
What does a virtual company model do?
Manages production and shipment for major fashion companies
How is the value of software in network economics compared to traditional economics?
Software value grows as the installed customer base grows
What is a characteristic of network economics regarding adding new participants?
Marginal cost of adding new participant is almost zero
Which company exemplifies a virtual company model in the text?
Li & Fung
What does a world-class leader in core competencies rely on according to the text?
Knowledge, experience, and sharing across business units
How does a network-based strategy take advantage of a firm's abilities?
By exploiting network economics and virtual company models
What is the main focus of the Business Value Chain Model?
Adding value to products or services
In the context of the Value Web, what does the term 'value chain' refer to?
Collection of activities adding value to products
How does the Value Web differ from the traditional value chain model?
It involves independent firms using synchronized IT
What is a key advantage of achieving synergies in business?
Improved operational efficiency and market expertise
Which action exemplifies a synergy in the context of strategic mergers and acquisitions?
Purchase of a competitor to expand market reach
How can information systems contribute to improving customer intimacy in the Value Chain Model?
By improving operational efficiency and customer service
What are the four generic strategies for dealing with competitive forces, enabled by using IT?
Low-cost leadership, product differentiation, focus on market niche, strengthen customer and supplier intimacy
In Porter's Competitive Forces Model, what do substitute products refer to?
Products that can replace the firm's offerings if prices become too high
How does low-cost leadership strategy differ from product differentiation strategy?
Low-cost leadership aims to offer products at a lower price than competitors, while product differentiation emphasizes creating unique products and experiences.
What role do suppliers play in the context of competitive forces?
Suppliers can exert market power if a firm cannot raise prices as fast as them
Which of the following is NOT one of the information system strategies for dealing with competitive forces?
Market development
How does strengthening customer and supplier intimacy contribute to dealing with competitive forces?
By enhancing relationships and loyalty, which can lead to competitive advantages
Test your knowledge on core competencies and network-based strategies used by world-class firms to stay competitive. Learn about how firms leverage knowledge sharing, experience, and networking to create business ecosystems. Example: Procter & Gamble's intranet and directory of subject matter experts.
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