BUSMHR 3510.01 Lecture Notes - Lecture 8: Product Differentiation, Starbucks, Panera Bread
5 Apr 2016
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2/4/16 industry & competitor analysis three key questions when studying an industry, entrepreneur must answer three questions before pursuing the idea of starting a firm: Don"t even have to be the first, be the one who figures it out best and nails it. for ex google fragmented industry: has lots of similar types for example pizza shops. Hard to compete, need a point of differentiation. Consolidate, put a bunch of pizza shops together and buy out competitors declining industries: on their way down. Have to do it better, cheaper, etc the five competitive forces model chapter 5. Compare a tv today, to a tv from 10 years ago. Price consumers are willing to pay depends on availability of subs. Now competes with panera threat of new entrants: If the firms in an industry are highly profitable, the industry becomes a magnet to new entrants.
