1. Absolute Cost Advantage
    A cost advantage that is enjoyed by incuments in an industry and that new entrants cannot expect to match
  2. Bargaining Power of Buyers
    The ability of buyers to bargain down prices charged by companies in the industry or to raise the costs of companies in the industry by demanding better product quality and service.
  3. Bargaining Power of Suppliers
    The ability of suppliers to raise the price of inputs or to raise the costs of the industry in other ways.
  4. Barriers to Entry
    Factors that make it costly for companies to enter an industry
  5. Brand Loyalty
    Preference of consumers for the products of established companies.
  6. Competitors
    Enterprises that serve the same basic customer needs
  7. An industry dominated by a small number of large companies or, in extreme cases, by just one company, which are in a position to determine industry prices.
  8. Decline Stage
    The stage in which primary demand is declining
  9. Economies of Scale
    Reductions in unit costs attributed to a larger output.
  10. Embryonic Industry
    An industry that is just beginning to develop
  11. Exit Barriers
    The economic, strategic, and emotional factors that prevent companies from leaving an industry.
  12. Fixed Costs
    Costs that must be borne before the firm makes a single sale
  13. Fragmented Industry
    An industry that consists of a large number of small or medium-sized companies, none of which is a position to determine industry prices.
  14. Growth Industry
    An industry where demand is expanding as first-time consumers enter the market
  15. Industry
    A group of companies offering products or services that are close substitues for each other--that is, products or services that satisfy the same basic customer needs.
  16. Macroenvironment
    The broader economic, gloabal, technological, demographic, social, and political context in which an industry is embedded.
  17. Mature Stage
    The stage in which the market is saturated, demand is limited to replacement demand, and growth is slow.
  18. Mobility Barriers
    Within-industry factors that inhibit the movement of companies between strategic groups
  19. Opportunites
    Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that enable it to become more profitable
  20. Potential Competitors
    Companies that are not currently competing in an industry but have the capability to do so if they choose.
  21. Rivalry
    The competitive struggle between companies in an industry to gain market share from each other.
  22. Strategic Groups
    Groups of companies in which each company follows a strategy that is similar to that pursued by other companies in the group, but different from the strategies followed by companies in other groups.
  23. Substitute Products
    The products of different businesses or industries that can satisfy similar customer needs.
  24. Switching Costs
    Costs that consumers must bear to switch from the products offered by one established company to the products offered by a new entrant
  25. Threats
    Threats arise when conditions in the external environment endanger the integrity and profitability of the company's business.
  26. Barriers to limitation
    Factors that make it difficult for a competitor to copy a company's distinctive competencies
  27. Capabilities
    A company's skills at coordinating its resources an dputting them to productive use
  28. Capital Productivity
    Output per unit of invested capital
  29. Company Infrastructure
    The companywide context within which all the other value creating activities take place: the organizational structure, control systems, and company culture.
  30. Customer Defection Rate
    The percentage of a company's customers who defect every year to competitors
  31. Customer Response Time
    The time that it takes for a good to be delivered or a service to be performed
  32. Customization
    Varying the features fo a good or service to tailor it to the unique needs or tastes of groups of customers or, in the extreeme case, or individual customers.
  33. Distinctive Competency
    A unique, firm-specific strength that enables a company to better differentiate its products and/or achieve substantially lower costs than its rivals and thus gain a competitive advantage
  34. Efficiency
    The quantity of inputs that it takes to produce a give output (that is, efficiency=outputs/inputs)
  35. Employee Productivity
    Output per employee
  36. Flexible Manufacturing Technology, or Lean Production
    A range of manufacturing technologies designed to reduce setup times for complex equipmetn, increase the use of individual machines through better scheduling, and improve quality control at all stage of the manufacturing process. Also known as lean production
  37. Heavyweight Project Manager
    A project manager who has high status within the organization and the power and autority required to get the financial and human resources that a project team needs to succeed.
  38. Innovation
    The creation of new products or processes
  39. Intangible Resources
    Non physical entities that are the creation of managers and other employess, such as brand names, the reputation of the company, the knowledge that employees have gained through experience, and the intellectual property of the company, including that projected through patents, copyrights, and trademarks
  40. Learning Effects
    Cost savings that come from learning by doing
  41. Marketing Strategy
    The position that a company takes with regard to pricing, promotion, advertising, product design, and distribution.
  42. Mass Customization
    The ability of companies to use flexible manufaturing technology to customize output at costs normally associated with mass production.
  43. Positioning Strategy
    The specific set of options a company adopts for a product on four main dimensions of marketing: price, distribution, promotion and advertising, and product features.
  44. Primary Activities
    Acitivities related to teh design, creation, and delivery of the product, its marketing, and its support and after-sale service
  45. Process Innovation
    The devlopment of a new process for producing products and delivering them to customers.
  46. Product Innovation
    The development of products that are new to the world or have attributes superior to those of existing products.
  47. Resources
    Financial, physical, social or human, technological, and organizational factors that allow a company to create value for its customers. Company resources can be divided into two types: tangible and intangible resources
  48. Self-Managing Team
    A team wherein members coordinate their own activities, which might include making their own decisions about hiring, training, work, and rewards
  49. Support Activities
    Activities of the value chain that provide inputs that allow the primary activities to take place.
  50. Tangible Resources
    Physical resources, such as land, buildings, plant, equipment, inventory, and money
  51. Value Chain
    The idea that a company is a chain of activities for transforming inputes into outputs that customers value
Card Set
Chapters three and four