BU111 Lecture 1: External Analysis (second half of lecture) - BU111 - SOFY
19
BU111 Full Course Notes
Verified Note
19 documents
Document Summary
Each determinant can create a downward pressure on price. Focusing on each form of competitor on your product. View point is in the middle (yellow box) Also, going to have to look from it as a potential entrant. Buyer influences the price that you can charge and your profitability. Medical advice app --> look at medical advice industry. Forces may be more influential in one industry vs. another. One force may be more influential or less dependent on industry. Price - be adjusted to what your competitors are doing to remain competitive. Cogs - what price they are charging for your wanted supplies. Can have a lot of influence in forcing you to lower your price. Meet customer needs (product quality, customer service, customer loyalty) If your price is too high, your volume will be low = lower revenue. Marketing - harder to persuade customers that your quality product is better, attract finicky buyers.
