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KEY TERMS AND DEFINITIONS
CH 2
Porter’s Five Forces
Also known as Industry and Competitive Analysis. A framework considering the interplay between (1) the intensity of rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers.
Affiliates
Third parties that promote a product or service, typically in exchange for a cut of any sales.
Brand
The symbolic embodiment of all the information connected with a product or service.
Dense Wave Division Multiplexing (Dwdm)
A technology that increases the transmission capacity (and hence speed) of fiber-optic cable. Transmissions using fiber are accomplished by transmitting light inside “glass” cables. In DWDM, the light inside fiber is split into different wavelengths in a way similar to how a prism splits light into different colors.
Distribution Channels
The path through which products or services get to customers.
Economies Of Scale
When costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale (like many Internet firms) are sometimes referred to as being highly scalable.
Fast Follower Problem
Exists when savvy rivals watch a pioneer’s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate.
Imitation-Resistant Value Chain
A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role.
Information Asymmetry
A decision situation where one party has more or better information than its counterparty.
Inventory Turns
Sometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during a given period. A higher figure means that a firm is selling products
CH 2
Porter’s Five Forces
Also known as Industry and Competitive Analysis. A framework considering the interplay between (1) the intensity of rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers.
Affiliates
Third parties that promote a product or service, typically in exchange for a cut of any sales.
Brand
The symbolic embodiment of all the information connected with a product or service.
Dense Wave Division Multiplexing (Dwdm)
A technology that increases the transmission capacity (and hence speed) of fiber-optic cable. Transmissions using fiber are accomplished by transmitting light inside “glass” cables. In DWDM, the light inside fiber is split into different wavelengths in a way similar to how a prism splits light into different colors.
Distribution Channels
The path through which products or services get to customers.
Economies Of Scale
When costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale (like many Internet firms) are sometimes referred to as being highly scalable.
Fast Follower Problem
Exists when savvy rivals watch a pioneer’s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate.
Imitation-Resistant Value Chain
A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role.
Information Asymmetry
A decision situation where one party has more or better information than its counterparty.
Inventory Turns
Sometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during a given period. A higher figure means that a firm is selling products