What is competitive advantage?
The ability to produce goods or services more effectively than rivals
Competitive advantage enables companies to outperform competitors.
What does a protective moat do?
Shields the company from competitive threats by creating unique value that is hard to replicate
This concept helps maintain a company’s market position.
Why is competitive advantage important?
- Differentiation and pricing power
- Attracting capital
- Customer retention and loyalty
- Profitability and growth
These factors contribute to a business’s long-term success.
Name the forms of competitive advantage.
- Exclusive resources
- Skilled labor
- Strong brands
- Proprietary technology
- Price leadership
These elements help businesses stand out in the market.
What are Michael Porter’s Generic Strategies?
- Cost Leadership Strategy
- Differentiation Strategy
- Focus Strategy
These strategies guide businesses in achieving competitive advantage.
What is the Cost Leadership Strategy?
Becoming the lowest-cost producer through economies of scale and operational efficiency
This strategy aims to attract price-sensitive customers.
What does the Differentiation Strategy involve?
Creating unique products that justify premium pricing through innovation and brand value
This strategy focuses on distinguishing a product from competitors.
What is the Focus Strategy?
Targeting niche markets with either low cost or specialized products
This strategy serves specific customer segments effectively.
What is a value proposition?
A clear articulation of unique customer benefits that differentiates the business in the market
It is essential for attracting and retaining customers.
What is the role of competitor analysis?
Refines positioning and helps anticipate market changes for sustained advantage
Understanding competitors is crucial for strategic planning.
What does sustaining advantage require?
- Market vigilance
- Adaptability
- Consistent delivery of value
These practices help maintain competitive edge over time.
True or false: Competitive advantage enhances pricing power and customer retention.
TRUE
It also boosts investor confidence and market position.
What are the five elements of UX design?
- Framework
- Scope
- Structure
- Strategy
- Interaction Design
These elements guide the design process for user experience.
What does wireframing assist with?
Visualizing the skeleton of digital applications
It provides direction for the design process.
What are the levels of wireframing?
- LoFI: Simple & abstract
- MidFi: Some images and sample text
- HiFi: Increased detail with dimensions and interactive elements
Each level serves different stages of the design process.
What is the purpose of information architecture?
How information is organized, labeled, and structured for easy user access
It focuses on organization, navigation, labeling, and user needs.
What is the role of front end development?
Turning designs into interactive, responsive, coded interfaces
It utilizes HTML, CSS, and JavaScript.
What does psychological redesign aim to improve?
- Cognitive function
- Visual appeal
- Rebranded design
It focuses on enhancing user experience through design.
What is the Peak-End Rule?
Users remember the most intense and final moments of an experience
This principle is important in designing user experiences.
What is behavioral psychology in design?
- Habit formation
- Choice architecture
- Feedback & rewards
These concepts influence user behavior and decision-making.
What is the goal of persuasive design?
Encouraging desired behaviors through ethical nudges and social proof
It aims to improve user engagement without manipulation.
What is the difference between functionality and features?
- Functionality: Base of the software/application
- Features: Extra parts that make it special
Understanding this distinction is crucial for effective design.
What does user scenarios illustrate?
How a user engages with a product in a specific situation
They provide context about user goals and behaviors.
What is Long-term Market Position?
Levarging strengths helps businesses maintain dominance and ensures long-term success in the marketplace
