ADMS 1000 Lecture Notes - Lecture 5: Switching Barriers, Strategic Management, Market Power

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Alan Shapiro

Document Summary

Analyzing the external environment o industry- a group of organizations/firms that share similar resource requirements. Buyers affect industry by demanding lower prices, better quality or services, or playing incumbents against one another. Switching costs- similar to switching cot with new entrants, the bargaining power of buyers increases as switching costs decrease. Undifferentiated products- if incumbents have similar products or services they are not in a good position to negotiate with buyers. It also allows them to play incumbents against each other the get the best deal therefore bargaining power of buyers is enhanced. Importance of incumbents" products to buyers- when product/services that incumbents offer are important or critical to buyers the power of buyers would be diminished. The number of incumbents relative to the number of buyers- when there are less incumbents the power of buyers is. Adms 1000 diminished because the buyers don"t have many alternatives to choose from. Compete with different industries that have threats due to substitution.