BUSI 1600 Lecture Notes - Lecture 12: Switching Barriers
29 Mar 2017
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Purchasing power: low % of business, supplier has power. We can, often, get a sense of our idea"s/firms potential after looking at industry stage and structure, often we can see one of four potential futures: failures, lifestyle, stable, profitable, high growth. Identify the main elements of an industry analysis: use the frameworks provided to assess an industry"s structure and stage of development, describe the implications of industry characteristics for the attractiveness of an opportunity. Industries vary in overall profitability or attractiveness due to differences in their structures. Michael porter five forces determine the overall structure of an industry: entry barriers, buyer power, supplier power, threat of substitutes, competitive rivalry. One goal of industry analysis is to understand how these forces operate in your chosen industry. Industry analysis is usually undertaken at the national or global level. High entry barrier serve to keep competitors out of an industry. Entry barriers consist of structural barriers and retaliatory barriers.
