COM 100 Midterm: Commerce 100 Chapter 2 and 3 Review

• School: University of Victoria
• Department: Commerce
• Course: COM 100
• Professor: Saeed Rahman

Document Summary

Commerce 100 chapter 2,3,4 review for midterm #1. Pest model for analysis, porter"s five forces, relations between position of a buyer and a supplier in various scenarios, what is the bargaining power of the buyers if there are many suppliers); degrees of competition. Pest model - external environment that cannot be controlled by a business. Porters five forces - threat of substitute of goods and services, threat of new entrance, bargaining. Power of suppliers, bargaining power of buyers, rivalry among competitors. Barriers to market entry: large capital requirements, strong customer loyalty/brand preference, lack of access to raw materials. High powered suppliers: a small number of dominant, highly concentrated suppliers exist, there are few good substitute raw materials/suppliers available, cost of switching raw materials is high. High powered buyers: customers are concentrated, large, or buy in volume, the products are similar, so it"s easy to switch suppliers, customer"s purchases represent most of the seller"s revenue.