ADMS 1000 Chapter Notes - Chapter 5: Switching Barriers, Strategic Management, Cost Leadership

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ADMS 1000 Full Course Notes
ADMS 1000 Full Course Notes
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Strategic management: consists of analysis, decisions, implementations & evaluations a firm undertakes in order to create & sustain its competitive advantages. used to sustain its competitive advantage, performance & chance of survival. It allows us to systematically assess the industry environment. ** 5 main sources of entry barriers: economies of scale: the spreading of the costs of production over the number of units produced. The cost of a product per unit declines as the number of units per period increases: capital requirements: the required capital to establish a new firm is high (airline, mining industries). c. switching costs: the costs (monetary or psychologically) associated with changing from one supplier to another. d. access to distribution channels: companies control most of the distribution channels; won"t let them in: cost disadvantages independent of scale: governmental policies, legal protection, & proprietary products. These advantages create the barriers for potential new entrants, which defer their entries www. notesolution. com: bargaining power of suppliers: