IS.Qz wk.5

The increased value of a product or service that results simply because there are more people using it.

• Network Effects

• Power of Buyers

• Power of Suppliers

• Threat of Substitutes

• Rivalry among existing competitors

The advantage buyers have when they have leverage over suppliers and can demand deep discounts and special services.

• Network Effects

• Power of Buyers

• Power of Suppliers

• Threat of Substitutes

• Rivalry among existing competitors

The advantage sellers have when there is a lack of competition and they can charge more for their products and services.

• Network Effects

• Power of Buyers

• Power of Suppliers

• Threat of Substitutes

• Rivalry among existing competitors

The threat posed to a company when buyers can choose alternatives that provide the same item or service, often at attractive savings.

• Network Effects

• Power of Buyers

• Power of Suppliers

• Threat of Substitutes

• Rivalry among existing competitors

The intensity of competition within an industry. Intense rivalry can reduce profitability in the industry due to price cutting or other competitive pressures.

• Network Effects

• Power of Buyers

• Power of Suppliers

• Threat of Substitutes

• Rivalry among existing competitors

A new product or service, often springing from technological advances, that has the potential to reshape an industry.

• Disruptive innovation

• Sustaining Technologies

• Value Chain Model

• Primary Activities

• Support Activities

Technologies that offer improvements to streamline existing processes and give companies marginal advantages.

• Disruptive innovation

• Sustaining Technologies

• Value Chain Model

• Primary Activities

• Support Activities

A model developed by Michael Porter that describes the activities a company performs to reate value, as it brings in raw resources from suppliers, transforms them in some way, and then markets the product or service to buyers.

• Disruptive innovation

• Sustaining Technologies

• Value Chain Model

• Primary Activities

• Support Activities

Activities directly related to the value chain process by which products and services are created, marketed, sold, and delivered.

• Disruptive innovation

• Sustaining Technologies

• Value Chain Model

• Primary Activities

• Support Activities

Activities performed as part of the value chain model that are not primary; support activities include administration and management, human resources, procurement, and technology support.

• Disruptive innovation

• Sustaining Technologies

• Value Chain Model

• Primary Activities

• Support Activities