BU111 Study Guide - Final Guide: Switching Barriers
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BU111 Full Course Notes
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The factors that determine the power of substitutes are: The number of quality substitutes (higher number-= higher power) mark: and the ease of switching to them (lower switching costs = higher power) mark. To address the porter"s five forces: convince customers that your product is unique and this can"t be substituted(1 mark, lock customers in so that it is harder / more costly for them to switch (1 mark) Explain how the elements that make the entrepreneurial process successful are similar to/related to the diamond e (3 marks) The entrepreneur is similar to the management preferences and organization elements from diamond e because he/she represents both the biases and the capabilities of the organization(1 mark. The oppourtunity is similar to the diamond e-s link to the environment. The entrepreneurial oppourtunity must make sense given the environment just as the strategy in diamond e will only be successful if the environment is supportive of it (1 mark)
