Week 2 - Ch. 3 Flashcards
industry
a group of firms producing products and services that are essentially the same
market
group of customers for specific products or services that are essentially the same (e.g. a particular geographical market)
Complementors
an organisation is your complementor if it enhances your business attractiveness to customers or suppliers
Value Net
map of organisations in a business environment demonstrating opportunities for value-creating cooperation as well as competition
Network Effects
there are network effects in an industry customer of a product or service has a positive effect on the value of that product for other customers
Strategic Lock-In
is where users become dependent on a supplier and are unable to use another supplier without substantial switching costs
(bought music on Apple’s iTunes store could only be played on Apple’s devices)
Strategic Groups
organisations within an industry or sector with similar strategic characteristics, following similar strategies or competing on similar bases
Market Segment
a group of customers who have similar needs that are different from customer needs in other parts of the market
Blue Oceans
new market spaces where competition is minimised.
Critical Success Factors
those factors that are either particularly valued by customers or which provide a significant advantage in terms of costs. (Sometimes called key success
factors (KSF))
Porter’s Five Forces Framework
helps identify the attractiveness of an industry in terms of five competitive forces:
the threat of entry; the threat of substitutes; the power of buyers; the power of suppliers; and the extent of rivalry between competitors
strategy canvas
compares competitors according to their performance on key success factors in order to establish the extent of differentiation
