ADMS 1000 Lecture Notes - Lecture 5: Imitation, Retained Earnings, Tim Hortons

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Ap/adms 1000 lecture # 5 business strategy. Industry: a group of organizations/firms that share similar resource requirements. The five- force model: allows us to systematically assess the industry environment, five forces include, threats of new entrants, bargaining power of suppliers, bargaining power of buyers, threats of substitutes, rivalry among existing firms. Economies scale: refer to spreading the costs of production over the number of units produced ii. [type text: required capital is extremely high for some industries such as airlines, this high cost creates a barrier for potential new entrants therefore reducing the threat of new entrants as the level of required capital increases iii. Access to distribution channels: barrier for potential new entrants, when incumbents control most of the distribution channels potential entrants find it hard to distribute their products or services, this decrease threat of new entrants v.