ISYS1021 Lecture Notes - Lecture 2: Freshdirect, Viral Marketing, Customer Switching
13 May 2016
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Document Summary
What is operational effectiveness? performing the same tasks better than rivals perform them. What is strategic positioning? performing different activities from those of rivals, or the same activities in a different way. The idea here is that if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that have four critical characteristics. What are the characteristics of resources that may yield sustainable competitive advantage? (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) nonsubstitutable. Businesses benefit from economies of scale when the cost of an investment can be spread across increasing units of production or in serving a growing customer base. Can"t get people to change from what they are used to. Users invest their time learning a product, entering data into a system, creating files, and buying supporting programs or manuals. These investments may make them reluctant to switch to a rival"s effort.
