BU111 Study Guide - Switching Barriers
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BU111 Full Course Notes
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The factors that determine the ppower of substitutes are. Number of quality substitutes (higher number = higher power) (0. 5) And the ease of switching to them (lower switching costs = higher power) (0. 5) As the price of substitues goes down compared to your pdocuct and it ecomes easier to switch/switching costs decline, the greater the pressure you face to keep your price down/puts ceiling on your price (1) Convince customers that your produt is unique and thus can"t be substituted (1) Lock customer in so that it is harder/more costly for the to switch (1) Explain how the elements that make the entrepreneurial process successful are smilar to/related to the diamond e (3 marks) The entrepreneur is similar to the management preferences and organization elemts from the. Diamond e because he represents both the biases and the capabilities of the organization (1 mark) The opportunity is imilar t the diamond e"s link to the nenvironment.
