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35 Cards in this Set
- Front
- Back
refers to the body of scientific knowledge used in the production of goods and services
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technology
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set of technical specifications that producers adhere to when making the product or component of it
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technical standards
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battles to set and control technical standards in a market
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format wars
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a common set of features or design characteristics
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dominant design
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underlying scientific knowledge that companies in the industry use is advancing rapidly
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high-tech industries
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when standards fall into the ___, it means any company can freely incorporate with it
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public domain
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industries where the size of the network or complementary products is a primary determinant of demand for an industry's product
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network effects
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the first to develop and pioneer revolutionary new products that can lead to an enduring competitive advantage
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first-mover advantage
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applications or uses of a new technology or product that are so compelling that they persuade customers to adopt to them
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killer applications
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assets required to exploit a new innovation and gain a competitive advantage
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complementary assets
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occurs when new technologies come along that revolutionize the structure of the industry, dramatically alter the nature of competition, and require companies to adopt new strategies
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technological paradigm shifts
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paradigm shifts are more likely to occur with
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Natural limits to technology
New disruptive technology |
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network effects and positive feedback loops often determine
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which standard comes to dominate a market
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a company that does business in two or more national markets
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multinational company
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economic benefits that arise from performing a value creation activity in the optimal location for that activity
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location economies
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typically a 50/50 venture, a favored mode for entering a new market
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joint venture
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parent company ownws 100% of subsidiary's stock
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wholly-owned subsidiaries
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cooperative agreements between companies from different countries that are actual or potential competitors
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global strategic alliances
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makes the most sense when there are strong pressures for cost reduction and the demand for local responsiveness is minimal
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standard globalization strategy
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most appropriate when there are substantial difference across nations with regard to consumer tastes and preferences, cost pressures not intense
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localization strategy
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focuses on increasing profitability by customizing the company's goods and services so that they match the taste and preferences in other national markets
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localization strategy
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increases profitability by reaping cost reductions that come from economies of scale and location economies
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global standardization strategy
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achieves low costs, differentiates the product, fosters a flow of skills b/w different subsidiaries
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transnational strategy
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low-cost pressures and low pressures for local responsiveness
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international strategy
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process of acquiring or merging with industry competitors in an effort to achieve the competitive advantage
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horizontal integration
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occurs when one company uses its capital resources (stock,cash) to purchase another company
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acquisition
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an agreement b/w equals to pool their operations and create a a new entity
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merger
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offering customers the opportunity to buy a range of products at a single price
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product bundling
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company expands its operations into an industry that produces inputs to the company's products
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backward vertical integration
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company expands into an industry that uses, distributes, or sells the company's products
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forward integration
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producing all of a particular input or disposing all of its completed products
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full integration
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using other suppliers for inputs or independent outlets in addition to company-owned outlets
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taper integration
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allows one or more of a company's value-chain activities or functions be performed by independent specialized companies
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strategic outsourcing
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a company becomes too dependent on specialist provider
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holdup
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company loses important customer contact or competitive information
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loss of information
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