SOCL 2505 Lecture Notes - Lecture 26: Switching Barriers, Swot Analysis, Embeddedness
Document Summary
Price sensitivity: products are differentiated, products have few substitutes, supplier product is an important input to buyers product (quality) bargaining. *(chapter 5 notes) intro: product innovation, financial resources, capabilities in product development and manufacturing, marketing, distribution. Growth: scaling up, adapting design and manufacturing capability to large scale production, access to distribution maturity: efficiency, cost efficiency through scale economies, low wages, low overheads. Bargaining power of buyers -bargaining power of suppliers -threat of new entrants -threat of substitute. Power of buyers -power of suppliers -threat of substitutes -rivals. *(chapter 4 notes) - market must be small relative to the minimum efficient scale of production, so that only a small number of competitors is viable. How does the firm perform in this area in relation to their rivals. Lack of differentiation or switching costs -excess capacity and high exit barriers -slow growth industry. Price performance characteristics of substitute -propensity of substitute: profit accrues to the complement supplier that:
