Understanding Competitive Advantage Group A

What is competitive advantage?

• Offering the lowest prices on the market

• A set of unique features of a company and its products that are perceived as superior to the competition

• The ability to advertise better than competitors

• Focusing on a niche market

Which of the following is a way to achieve competitive advantage through information systems?

• Increasing product costs

• Decreasing production time

• Streamlining operations and enhancing decision-making

• Reducing customer interaction

Which strategy focuses on offering unique products that stand out from competitors?

• Cost leadership

• Differentiation

• Focus strategy

• Product elimination

What is a business model in the digital world?

• A document that only outlines costs

• A summary of a business's strategic direction, including how objectives will be achieved

• A physical location where business is conducted

• A list of products sold

Which revenue model involves businesses paying others to refer customers?

• Subscription

• Affiliate marketing

• Licensing

• Freemium

Which of the following describes the subscription revenue model?

• Customers buy a product one time

• Users pay a fee for protected intellectual property

• Users pay a recurring fee for access to a product or service

• Advertisers pay for ad placement

What is the advantage of network effects in achieving strategic advantage?

• Lowering prices for consumers

• Increasing value as more users join a platform

• Outsourcing all business processes

• Reducing reliance on innovation

Which of these is NOT a factor that makes innovation difficult?

• Changing customer needs

• High costs and resource allocation

• Simple technological changes

• Internal resistance to change

Which pricing strategy involves charging advertisers based on the number of times their ad is displayed?

• Cost-per-click (CPC)

• Cost-per-impression (CPM)

• Cost-per-action (CPA)

• Subscription model

Which of the following defines the sharing economy?

• An economy where companies do not share information

• An economic system where assets or services are shared between private individuals, often via the internet

• A model where businesses monopolize resources

• A model for international trade