Sustainable Competitive Advantage Quiz
41 Questions
3 Views

Sustainable Competitive Advantage Quiz

Created by
@CooperativeKremlin

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the term used to describe the rate at which customers leave a product or service?

  • Engagement rate
  • Churn rate (correct)
  • Retention rate
  • Acquisition rate

    • Which of the following accurately describes the First Sale Doctrine?

  • It permits the distribution of legally acquired physical copies. (correct)
  • It mandates that all content must be distributed for free for a short time.
  • It allows firms to distribute digital copies of content.
  • It restricts the reproduction of digital products.

    • What is a primary advantage of Netflix's use of collaborative filtering through Cinematch?

  • It increases fixed costs.
  • It enhances customer loyalty by personalizing experiences. (correct)
  • It eliminates the need for content acquisition.
  • It limits the types of content available to customers.

    • What does the term 'windowing' refer to in the context of content availability?

    <p>The strategy of releasing content for only a limited period.</p> Signup and view all the answers

    Which of the following best describes a marginal cost?

    <p>The cost incurred by producing one additional unit of a product.</p> Signup and view all the answers

    What competitive advantage did Netflix have over Walmart and Blockbuster?

    <p>Best customer service with DVDs</p> Signup and view all the answers

    What feature of Netflix's business model allowed it to offer a wide range of titles?

    <p>Long-tail selection of unique DVD titles</p> Signup and view all the answers

    Which of the following technologies did Netflix use to enhance its distribution capabilities?

    <p>Automated distribution centers</p> Signup and view all the answers

    What major investment did Netflix make for its delivery infrastructure?

    <p>$300 million</p> Signup and view all the answers

    When companies like Netflix become public, what must they disclose?

    <p>Financial position</p> Signup and view all the answers

    What does Netflix's unmatched data asset provide the company?

    <p>Enhanced understanding of customer preferences</p> Signup and view all the answers

    Which element is crucial for Netflix's ability to manage scale?

    <p>Automated distribution systems</p> Signup and view all the answers

    What element does the concept of 'long-tail' refer to in the context of Netflix?

    <p>Broad selection of niche titles</p> Signup and view all the answers

    What does strategic positioning refer to?

    <p>Performing different activities from rivals.</p> Signup and view all the answers

    What characterizes economies of scale?

    <p>Reduced costs per unit as production increases.</p> Signup and view all the answers

    What is meant by inventory turns?

    <p>How quickly a company collects money from sales.</p> Signup and view all the answers

    What do imitation-resistant value chains rely on?

    <p>Unique and hard-to-replicate operational processes.</p> Signup and view all the answers

    How do switching costs affect consumer behavior?

    <p>They make it costly for consumers to change products.</p> Signup and view all the answers

    What does the term 'fast follower problem' refer to?

    <p>Quickly matching a competitor’s product at a lower cost.</p> Signup and view all the answers

    What is a key characteristic of network effects?

    <p>The product becomes more valuable as more users adopt it.</p> Signup and view all the answers

    What is a critical factor for competitive advantage according to the resource-based view?

    <p>Control of valuable, rare, and imperfectly imitable resources.</p> Signup and view all the answers

    What does operational effectiveness involve?

    <p>Performing the same tasks better than rivals.</p> Signup and view all the answers

    What is meant by straddling in a competitive context?

    <p>Operating in multiple sectors without a clear focus.</p> Signup and view all the answers

    What role does branding play in competitive advantage?

    <p>It creates a perception of premium pricing.</p> Signup and view all the answers

    How does viral marketing contribute to a business?

    <p>By increasing product visibility through word of mouth.</p> Signup and view all the answers

    What factors comprise the primary activities of a value chain?

    <p>Inbound logistics, operations, outbound logistics, marketing, and sales.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of commodities?

    <p>They are typically offered at varying prices.</p> Signup and view all the answers

    What is the purpose of APIs in a business context?

    <p>To enable communication between different software applications</p> Signup and view all the answers

    Which of the following is NOT one of Porter's five forces?

    <p>Intensity of government regulation</p> Signup and view all the answers

    How does Zara minimize the risk of markdowns and write-offs?

    <p>By limiting production runs</p> Signup and view all the answers

    What does an omnichannel strategy integrate?

    <p>Online and offline sales</p> Signup and view all the answers

    What is one of the key benefits of Zara's use of RFID tags?

    <p>Improved inventory management</p> Signup and view all the answers

    What is the primary focus of the bargaining power of buyers in Porter's five forces?

    <p>Customers' ability to influence pricing</p> Signup and view all the answers

    What technology does Zara utilize to gather customer preferences in real-time?

    <p>Mobile apps with chat features</p> Signup and view all the answers

    How quickly can Zara design and launch a product in stores?

    <p>In 15 days</p> Signup and view all the answers

    Which of the following strategies does NOT directly relate to Zara's inventory management?

    <p>Discounting slow-moving products</p> Signup and view all the answers

    What significant change in sales did Zara experience during April 2020?

    <p>E-commerce sales increased by 95%</p> Signup and view all the answers

    What is the main consequence of having too much unwanted product in retailer inventory?

    <p>Higher markdowns and write-offs</p> Signup and view all the answers

    What aspect of customer demand does Zara’s design process heavily rely on?

    <p>Consumer feedback and sales data</p> Signup and view all the answers

    What is a potential effect of information asymmetry in pricing?

    <p>Possibility of unfair pricing practices</p> Signup and view all the answers

    Which of the following is true about Zara's supply chain management?

    <p>It maintains control over multiple layers of the value chain</p> Signup and view all the answers

    Study Notes

    Sustainable Competitive Advantage

    • Sustainable competitive advantage is achieving financial performance that consistently outperforms industry peers.
    • Operational effectiveness refers to performing the same tasks better than rivals.
    • Fast follower problem arises when a competitor enters a market quickly with a comparable or superior product at a lower cost.
    • Strategic positioning involves performing different activities than rivals.

    Resource Based View

    • To achieve sustainable competitive advantage, firms must control a set of exploitable resources that are valuable, rare, imperfectly imitable, and non-substitutable.

    Imitation Resistant Value Chains

    • Value Chain: set of activities through which a firm creates and delivers a product to customers.
      • Primary activities include logistics, inbound and outbound operations, marketing and sales, and service.
      • Secondary activities include firm infrastructure, human resource management, technology/research & development, and procurement.
    • Brands can be a source of competitive advantage by representing a symbolic embodiment of all aspects connected with a product or service.
    • Viral Marketing can be a powerful tool for spreading brand awareness.
    • Scale Advantages are benefits that firms gain from their size, such as:
      • Economies of Scale: Spreading investment costs across increasing units of production.
      • Switching Costs: Cost consumers incur when switching from one product to another.
    • Differentiation refers to offering products or services that are nearly identical but offer unique value propositions.
    • Network Effects: When a product or service becomes more valuable as more people use it.
    • Distribution Channels: The paths through which products and services reach customers.
    • APIs (Application Programming Interfaces) are tools that allow firms to connect their systems and services with those of other companies.

    Porter's Five Forces

    • Intensity of rivalry among existing competitors
    • Threat of new entrants
    • Threat of substitute products or services
    • Bargaining power of buyers
    • Bargaining power of suppliers

    Price Transparency

    • Price transparency refers to the ease with which consumers can compare prices across different sellers.
    • Information Asymmetry exists when one party in a transaction has more information than the other.

    Zara

    • Zara's success is based on its ability to respond quickly to changing customer demand.
    • Zara leverages data to understand customer preferences and tailor its designs accordingly.
    • Zara uses a vertical integration strategy, owning several layers of its value chain.
    • Inventory optimization models help Zara manage its stock levels effectively.
    • Zara's manufacturing facilities are close to its stores, allowing for fast turnaround times.
    • Limited production runs and full-price pricing minimize the risk of leftover inventory.
    • Zara has adapted to the shift towards e-commerce through its omnichannel strategy.
    • Zara's RFID system helps track inventory and facilitate efficient logistics.

    Netflix

    • Netflix has successfully transitioned from a DVD rental business to a streaming service.
    • Netflix's strength comes from its customer service, brand, scale, and data assets.
      • Netflix has a long-tail strategy, offering a wide selection of unique titles.
    • The company's automated distribution centers enable fast overnight delivery to customers.
    • Netflix uses algorithms like Cinematch to personalize customer experience based on viewing history and preferences.
    • Netflix leverages data to optimize its content library and reduce churn rate.
    • Netflix operates on a fixed cost structure, with marginal costs associated with streaming content.
    • Netflix uses a "coopetition" strategy with companies like Amazon.
    • Content acquisition is a significant challenge for streaming services like Netflix.
    • The First Sale Doctrine allows firms to distribute physical copies of legally acquired copyright-protected products.
    • Netflix has adopted a windowing strategy, limiting content availability for specific time periods.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Dim Midterm Review PDF

    Description

    Test your knowledge on sustainable competitive advantage and the resource-based view in strategic management. This quiz covers key concepts such as operational effectiveness, strategic positioning, and value chains. Understand how firms can outperform their peers through effective resource management.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser