COMM 320 Lecture Notes - Lecture 5: Status Quo, Bargaining Power, Competitor Analysis

• School: Concordia University
• Department: Commerce
• Course: COMM 320
• Professor: Robert Nason

Document Summary

Must think about its position at both the company level and product/service level. F(cid:396)a(cid:373)e(cid:449)o(cid:396)k to u(cid:374)de(cid:396)sta(cid:374)d i(cid:374)dust(cid:396)(cid:455)"s st(cid:396)u(cid:272)tu(cid:396)e (cid:272)o(cid:373)p(cid:396)ised of fo(cid:396)(cid:272)es that dete(cid:396)(cid:373)i(cid:374)e industry profitability: threat of substitutes: how easily other products/services can serve as substitutes. Industries often offer amenities to reduce likelihood that customers will switch to a substitute product: threat of new entrants: how high are the barriers to entry. E(cid:272)o(cid:374)o(cid:373)ies of s(cid:272)ale (cid:373)ass p(cid:396)odu(cid:272)tio(cid:374) = lo(cid:449)e(cid:396) a(cid:448)e(cid:396)age (cid:272)osts. P(cid:396)odu(cid:272)t diffe(cid:396)e(cid:374)tiatio(cid:374) st(cid:396)o(cid:374)g (cid:271)(cid:396)a(cid:374)di(cid:374)g, p(cid:396)odu(cid:272)t i(cid:374)(cid:374)o(cid:448)atio(cid:374: do w have a really high end brand hard to switch (iphone android) Othe(cid:396) (cid:271)a(cid:396)(cid:396)ie(cid:396)s to e(cid:374)t(cid:396)(cid:455) i(cid:374)telle(cid:272)tual p(cid:396)ope(cid:396)t(cid:455), t(cid:396)ade se(cid:272)(cid:396)ets, (cid:449)o(cid:396)ld-class management team: rivalry among existing firms: level of competition among already existing firms. Level of fixed costs: bargaining power of suppliers: suppliers can suppress profitability by increasing prices/decreasing quality. Supplie(cid:396) (cid:272)o(cid:374)(cid:272)e(cid:374)t(cid:396)atio(cid:374) fe(cid:449) supplie(cid:396)s = higher power. Att(cid:396)a(cid:272)ti(cid:448)e(cid:374)ess of su(cid:271)stitutes po(cid:449)e(cid:396) is e(cid:374)ha(cid:374)(cid:272)ed if the(cid:396)e a(cid:396)e (cid:374)o att(cid:396)a(cid:272)ti(cid:448)e substitutes.