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

133 views8 pages
whitebuffalo5917706 and 39630 others unlocked
ADMS 1000 Full Course Notes
ADMS 1000 Full Course Notes
Verified Note
12 documents

Document Summary

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: