OMIS 3710 Chapter Notes - Chapter 2: Network Effect, Switching Barriers, Surefire

• School: York University
• Department: Operations Management and Information System
• Course: OMIS 3710
• Professor: Henry Kim

Document Summary

Chapter 2: strategy and technology: concepts and frameworks for understanding what. By focusing on strategic positioning rather than operational effectiveness. Operational effectiveness: performing the same tasks better than rivals perform them. Different is good: freshdirect redefines the nyc grocery landscape: new york groceries had 2 problems as function of expensive ny real estate. High prices: freshdirect uses technology addresses these problems. Assets will yield sustainable advantage if they are: rare. Is the asset in limited supply or difficult to acquire: valuable. Is the asset impossible to imitate: non-substitutable. A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role. The symbolic embodiment of all the information connected with a product or service. Economies of scale: when costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale (like many internet firms) are sometimes referred to as being highly scalable.