Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
3 Cards in this Set
- Front
- Back
|
Transaction costs |
Markets are not free, they have costs. Should be compared to alternate costs •search costs - cost of finding someone to have a contract with - time consuming • negotiating costs • monitoring costs - cost of monitoring and understanding deliverables • enforcement costs - cost of lawsuits etc that are necessary Risk and insurance costs - costs associated with mitigating risks |
|
|
Sustaining advantage |
Divided into requirement for imitation and isolating mechanisms.
Identification - the firm must be able to identify rival firms competitive advantage. Incentive - need to believe that you can earn rewards by copying advantage. Deterrence - make competitor believe they won't make money. Pre emotion - occupying all niches to scare off competitors. Diagnosis - must be able to diagnose what gave them advantage. Resource aqusition - must be a me to acquire the necessary resources and capabilities to copy. |
|
|
Reasons for competitive advantage |
Cost - cheaper goods than competitors Differentiation - different or better products than competitors |
