Chapter 3 Flashcards
What are Porter’s 5 forces?
the five forces are divided into two types: competitive and bargaining
competitive:
- threat of substitutes
- threat of new entrants
- competition from existing rivals
bargaining:
- bargaining power of suppliers: how easy it is for a supplier to raise prices
- bargaining power of customers: how easy it is for a customer to influence price
what are Porter’s 4 competitive forces
Porter’s 4 competitive forces are characterized by Cost, how Industry-wide it is, Differentiation, and Focus
What is a value chain and how is it made?
a value chain is a network of value-creating activities and a generic chain is made from five primary activities and four support activities
What are the primary activities in a value chain?
inbound logistics, operations/manufacturing, outbound logistics, sales & marketing, and customer service
How does a company gain a generic competitive advantage?
by creating new products or services, enhancing products or services, and differentiating products or services
What is “digital transformation” and its impact on business?
digital transformation is “the realignment of, or new investment in , technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle”
It has an impact on customer experience–sales/marketing & customer service, as well as Operations–automation, employee collaboration, and analytics
What should an effective omni-channel strategy include?
the merging of sales, service and support into a seamless experience, personalized service and authentic interactions, increased automation where possible, and improved backend systems for a seamless front end experience
