Question 1

The more people that use Microsoft Office software and related products, the lower its value.

Accepted Answer

The value of Microsoft Office software and related products increases with more people using it. This is because of network effects, where the more people use the product, the more valuable it becomes to other users.

Question 2

A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.

Accepted Answer

A value web is a network of independent firms that work together using technology to produce a product or service for a market. It allows for greater collaboration and efficiency in the value chain.

Question 3

The value chain model classifies all company activities as either primary or support.

Accepted Answer

The value chain model does indeed classify company activities as either primary or support. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities include procurement, technology development, human resource management, and firm infrastructure.

Question 4

Strong linkages to customers and suppliers decrease switching costs.

Accepted Answer

The answer of Strong linkages to customers and suppliers decrease...

Question 5

You are advising the owner of Smalltown Computer, a new, local computer repair store that also builds custom computers to order. What competitive strategies would you advise Smalltown Computer to take? Which ones will it have difficulty exercising?

Accepted Answer

The answer of You are advising the owner of Smalltown...

Question 6

Research has shown that the more successfully a firm can align its IT with its business goals, the more profitable it will be. What practical steps should a firm use in aligning IT with its goals?

Accepted Answer

The answer of Research has shown that the more successfully...

Question 7

How is Internet technology useful from a network economics perspective? Give examples.

Accepted Answer

The answer of How is Internet technology useful from a...

Question 8

Value chain analysis is useful at the business level to highlight specific activities in a business where information systems are most likely to have a strategic impact. Discuss this model, identify the activities, and describe how the model can be applied to the concept of information technology.

Accepted Answer

The answer of Value chain analysis is useful at the...

Question 9

The activities that measure the performance of your business processes against strict standards are called best practices.

Accepted Answer

Best practices refer to the recommended methods or techniques that have been accepted as superior to any alternatives because they produce results that are superior to those achieved by other means. Activities that measure the performance of your business processes against strict standards are typically referred to as benchmarks or benchmarking.

Question 10

The law of diminishing returns does not apply to traditional products.

Accepted Answer

The law of diminishing returns applies to all products, including traditional ones. This law states that after a certain point, adding more inputs to a production process will lead to smaller increases in output, eventually reaching a point where adding more inputs will result in no increase in output or even a decrease.

Question 11

The inventors of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

Accepted Answer

Fast followers can often catch up quickly by learning from the inventors' mistakes, leveraging existing market infrastructure, and utilizing their own resources and capabilities to improve upon the original technology.

Question 12

Select a popular product or company that you are familiar with, such as Apple's iPad. Apply Porter's competitive forces model to that product and/or company. Which of the four generic strategies is the company using?

Accepted Answer

The answer of Select a popular product or company that...

Question 13

When the output of some units can be used as inputs to other units, synergies develop, which can lower cost and generate profits.

Accepted Answer

When two or more units work together and their outputs can be used as inputs for each other, synergies are created that can lead to cost savings and profit generation.

Question 14

The Internet has intensified competitive rivalry.

Accepted Answer

With the easy accessibility to information and the ability to reach global markets, the internet has increased the competition among businesses. Companies need to continually innovate and offer better value to customers to stay ahead in this fierce competition.

Question 15

You are consulting with the owner of Better Bodies, a national chain of gyms. How could the use of information systems help them exert each of the four generic strategies in achieving competitive advantage?

Accepted Answer

The answer of You are consulting with the owner of...

Question 16

Why are disruptive technologies "tricky"? Provide examples.

Accepted Answer

The answer of Why are disruptive technologies "tricky"? Provide examples....

Question 17

Product differentiation is one of the four basic competitive strategies.

Accepted Answer

Product differentiation is indeed one of the four basic competitive strategies, with the other three being overall cost leadership, focus strategy, and integrated low-cost/differentiation strategy. Product differentiation involves creating a unique and distinct product or service that sets a brand apart from competitors, and can be achieved through various means such as design, features, quality, branding, customer service, and innovation.

Question 18

The effect of the Internet has been to increase a company's bargaining power vis-à-vis its suppliers.

Accepted Answer

The Internet has increased transparency and access to information for companies, allowing them to more easily compare prices and products from different suppliers. This gives companies more negotiating power in their supplier relationships.

Question 19

In the value chain model, primary activities are those that are most directly related to the production and distribution of the firm's products and services.

Accepted Answer

Primary activities in the value chain model include inbound logistics, operations, outbound logistics, marketing and sales, and service. These activities are directly related to the production and distribution of products and services.

Question 20

Why has the Internet made competitive rivalry more intense?

Accepted Answer

The answer of Why has the Internet made competitive rivalry...

Quiz 3: Achieving Competitive Advantage With Information Systems