MGCR 331 Lecture Notes - Network Effect, Demand Forecasting, Loyalty Program
Document Summary
Key frameworks for examining a firm"s competitive environment: porter"s five. Forces, also known as the industry and competitive analysis: the intensity of rivalry among existing competitors, intra-industry rivalry is high when competition is fierce in the market. It can be used to create personalized products and services, which can reduce product similarity among competitors in an industry, thus reducing competition. Firms also use it to create loyalty programs (provigo and loblaw: the threat of new entrants. First-mover advantage: internet provides direct consumer access to the banks. It eliminates the need for a bank to incur huge amounts in setting up retail branches and. Example: loyalty program of travel industry free airline tickets, upgrades, hotel stays. Supplier power is the converse of buyer power. Key frameworks: the value chain: the value chain is the set of activities through which a product or service is created and delivered to customers, the primary components are: