BUSI 4701U Study Guide - Final Guide: Total Quality Management, Switching Barriers, Brand Equity
Document Summary
Goal cost advantages that could only be realized by placing companies" refining facilities under a single management. The dynamic logic of growth and competition that drives modern industrial capitalism. The power of suppliers: a supplier group is powerful if. It is more concentrated than the industry it sells to: the supplier group does not depend heavily on the industry for its revenues. Industry participants face switching costs in changing suppliers: suppliers offer products that are differentiated, there is no substitute for what the supplier group provides, the supplier group can credibly threaten to integrate forward into the industry. The threat of substitutes: the threat of a substitute is high if. It offers an attractive price-performance trade-off to the industry"s product: the buyer"s cost of switching to the substitute is low. The five forces reveal why industry profitability is what it is.
