The threat of existing competition tends to be high in an industry when firms are able to meaningfully differentiate their products.
A firm's supplier poses a greater threat if the supplier's industry has a large number of firms, none of which dominate the supplying industry, than if the supplier's industry is dominated by a small number of firms. Suppliers are a greater threat to firms in an industry when suppliers are threatened by substitutes.
In general, it is rarely the case that all five forces in the five forces framework will be equally threatening at the same time. Sophisticated software can enhance the value that customers receive from a personal computer.
When all five threats are low, competition begins to approach what economists call a monopoly and firms are able to earn above average profits. Alternatively, when all five forces are very high, competition begins to approach perfect competition and the best firms can hope to earn is competitive parity.
Start studying Strat 5700 CH 2. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Start studying CHAPTER 2 (strat test). Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Johnson & Johnson's strategy to get into the baby powder business is an example of a(n) _____ strategy. Question options: e When a firm is able to create more economic value than rival firms it is said to have a(n)_____ advantage. Question options: tive ive c Ratios that focus on the level of a firm's financial flexibility, including its ability to obtain more debt, are known as _____ ratios.
Expert solutions for 61) Which of the following statements regarding substitutes is accurate? A) In:1915764 ...
58) If TechnoGeek and VarsityBlue compete in the same market for the same customer and TechnoGeek generates $900 of economic value each time it sells a product or service while VarsityBlue generates $400 of economic value each time it sells a product or service, TechnoGeek has a competitive advantage of A) $1,300. B) $3,600. C) $360,000. D) $500. Answer: D Diff: 3 Page Ref: 11
New employees, especially those working for a large organization, benefit from an orientation process where they can acquire an overview of the company and the importance of their job to the company.
Threat of Substitutes or Substitution against Intel (Weak Force) Substitutes can reduce the sales and overall performance of Intel, thereby imposing a threat in the industry environment. The intensity of such threat is considered in this aspect of the Five Forces Analysis.
In addition, Intel must continue enhancing its competitiveness, considering the rapid advancement of computing technologies in the market. Upon understanding the bases of the five forces indicated in this analysis, the company can develop appropriate solutions to address issues in its business environment.
A firm's supplier poses a greater threat if the supplier's industry has a large number of firms, none of which dominate the supplying industry, than if the supplier's industry is dominated by a small number of firms. Suppliers are a greater threat to firms in an industry when suppliers are threatened by substitutes.
Therefore, software can be said to be a complementor of a personal computer. Answer: TRUE. According to Bradenburger and Nalebluff, a firm's competitors help increase the size of a firm's markets while complementors divide this market among a set of firms. Answer: FALSE.
A firm's supplier poses a greater threat if the supplier's industry has a large number of firms, none of which dominate the supplying industry, than if the supplier's industry is dominated by a small number of firms. Suppliers are a greater threat to firms in an industry when suppliers are threatened by substitutes.
Therefore, software can be said to be a complementor of a personal computer. Answer: TRUE. According to Bradenburger and Nalebluff, a firm's competitors help increase the size of a firm's markets while complementors divide this market among a set of firms. Answer: FALSE.