AFM241 Lecture Notes - Lecture 2: Customer Switching, Competitive Advantage, Switching Barriers

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM241
• Professor: Theophanis Stratopoulos

Document Summary

Business strategy: the business value of technology investments depends on the firms" ability to align its it initiatives with its business strategy. No one could order for a week: this played a huge part in their it failure magnitude: down 98% profits. Why: there was a very complicated implementation system: erp system. Went about the implementation right, but screwed up in execution. Guest speakers: two former afm students who ended up in cineplex and. What are the specific actions to reach competitive advantage: sustained vs temporary strategies, business vs corporate, relative performance, measuring performance, opportunity cost. Performance is the driving force and goal of business strategy: sets them apart. New companies like linkedin and skype could not have existed without it: use features such as freemiums to entice customers. Success by building a business model by: understanding potential customers and their needs, analyze operations and make sure you can deliver what they want on time at a good price.