MGT 3200 : MGT 2nd Half Of Notes For Midterm
Document Summary
Have only short term contracts for a particular resource and increase # of suppliers for a particular resource. Acquiring your supplier is known as vertical integration forward. Rivalry at its greatest when: there are many organizations in the market industry; there is a mature, low growth market. Government patents, brand loyalty, large capital requirements, cost advantages. Power of suppliers: no choice but to increase prices or take a hit to profitability. They make large purchases from you and have many places to buy what you"re selling. They can drive down prices, cut into bottom line profitability, make you improve quality. *what makes for a bad environment? horizontal integration- when you buy out your competitors. Cutting your prices to attract customers is dangerous. Don"t make any sudden moves; leave the prices or both will lose. Price-sensitive switchers; a mooch is a mooch is a mooch; price is an indication of quality. good quality at a low price- no service ex.
