Which of the following is not one of the competitive forces of Porter's Model?
External Environment
A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.
product differentiation
traditional competitors
low number of suppliers
new market entrants
New Market Entrants
Which of the following industries has a low barrier to entry?
) automotive
computer chip
restaurant
airline
Answer
Restaurant
A substitute product of most concern for a cable TV distributor is
satellite TV.
broadcast TV.
satellite radio. the Internet. Answer
Satellite TV
Which of the following can force a business and its competitors to compete on price alone?
transparent marketplace
high product differentiation
poor process efficiency
demand control
Answer
Transparent Market Place
A firm can exercise greater control over its suppliers by having
more suppliers.
fewer suppliers.
global suppliers.
local suppliers. Answer
More Suppliers
Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?
Compete on employee loyalty
Wal-Mart's continuous replenishment system allows it to
provide mass customization.
provide an efficient customer response system.
strengthen customer intimacy.
achieve economy of scale.
provide an efficient customer response system
Which of the following illustrates the use of information systems to achieve product
differentiation?
A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
Which of the following illustrates the use of information systems to strengthen customer and
supplier intimacy?
A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules
Which of the following illustrates the use of information systems to focus on market niche?
A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy
When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ___ strategy
Market Niche
A information system can enable a company to focus on a market niche through
intensive customer data analysis
Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to
strengthen customer intimacy.
differentiate their service. focus on market niche. increase efficiency. Answer
Focus on market niche
To what competitive force did the printed encyclopedia industry succumb?
Substitute products and services
Internet technology
makes it easy for rivals to compete on price alone.
imposes a significant cost of entry, due to infrastructure requirements.
increases the difference between competitors because of the wide availability of information.
makes it easy to sustain operational advantages. Answer
Makes it easy for rivals to compete on price alone
The Internet raises the bargaining power of customers by
creating new opportunities for building loyal customer bases.
making more products available.
making information available to everyone.
lowering transaction costs. Answer
making information available to everyone
Which of the following is not an advantage for new companies entering the marketplace?
They can establish new relationships with suppliers
Based on your reading of the chapter case, which of the four generic business strategies was Ford Motor Company following in implementing its new software and apps?
product differentiation
The value chain model
helps a firm identify points at which information technology can most effectively to enhance
its competitive position
All of the following are considered activities of a firm except:
Procurement
The support activities of a firm include:
organization infrastructure, human resources, technology, and procurement
When the output of some units can be used as inputs to other nits, or if two organizations pool markets and expertise that result in lower costs and generate profits, it is often referred to as creating:
synergies
All of the following industries have been severely disrupted by the Internet except:
PC manufacturer
A firm's value chain is linked to the
value chains of its suppliers, distributors, and customers
Network economics
sees the cost of adding new members as inconsequential
In Network Economics, the value of a commercial software vendor's software products
increases as more people use them
A virtual company:
Uses
Benchmarking
compares the efficiency and effectiveness of your business processes against strict standards
The most successful solutions or methods for achieving a business objective are called:
Best practices
A virtual company
uses the capabilities of other companies without being physically tied to those companies
The iPAD can be seen as a disruptive technology for the ___ industry
publishing
The emergence of the World Wide Web acted as a disruptive technology for:
print publishing
All of the following have been disruptive technologies except:
minicomputers
Which of the following best describes business globalization?
Business selling their products worldwide
The greatest impact the Internet has had on globalization is the lowering the costs of
entry to global-scale operations
The _____ strategy concentrates financial management and control out of a central home base while decentralizing productions, sales, and marketing operations to units in other countries
multinational
An information system can enhance core competencies by
encouraging the sharing of knowledge across business units
The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as
the point of no return.
the law of diminishing returns.
supply and demand.
network inelasticity. Answer
Law of diminishing returns
Network economics
increases as more people use them
How are information systems used at the industry level to achieve strategic advantage?
By building industry wide, IT-supported consortia and symposia
