FAS 301 Lecture Notes - Lecture 6: Predatory Pricing, Bargaining Power, Market Economy
Document Summary
Chapter 6- competition, the stock market, and financial. The center of framework is rivalry- observing and keeping up w/competition: barriers to entry. Companies need to adopt new technologies in order to improve profitability and lower cost. Easy to enter footwear industry- however most companies lack staying power: capital, control of resources, government regulations, predatory pricing, r&d, switching costs, vertical integration, exclusive supplier agreements, buying power. Bargaining power of buyers relates to the buying power of customers. The consumer price index (cpi) = indicator of changes in consumer prices experienced by canadians. Comparing cost of a fixed basked of goods and services purchased by consumers. Indicator of the change in the general level of consumer prices or rate of inflation: threat of substitutes, style modification, knock offs, counterfeit goods, supplier power. How easy it is for suppliers to drive up prices.
