Chapter 4 Flashcards
Basis of differentiation
What causes customers to pick one company’s products over anothers
Channels
Company’s description of how it delivers its product to customers
Churn
the number of subscribers that a subscription-based business loses each month
Core competency
A specific factor or capability that supports a firm’s business model and sets it apart from its rivals. Core competencies are what the firm does particularly well and largely determine the details of its core strategy.
core strategy
A description of how a firm intends to compete against its competitors.
disruptive business model
Business models that are rare, that do not fit the profile of a standard business model, and that are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.
Such as AI
Fixed costs
The expenses that remain the same for a company despite the volume of products or services it produces. Firms incur fixed costs whether they sell something or not
Low-end market disruption
When firms in an industry continue to improve products to the point where they are better than a sizable portion of their clientele’s needs or desires.
new market disruption
A market disruption that addresses a market that businesses were not serving.
product/market scope
Defines a firm’s products and the markets on which it will concentrate to sell them.
revenue streams
A description of how a firm makes money.
target market
Portion of industry that a firm goes after or to which it wants to appeal. typically a segment within a larger market that represents a narrower group of customers with similar interests
variable costs
Costs that vary proportionally with the volume of production; firms incur these costs to generate sales
