問題一覧
1
products that customers perceive to be substitutable for one another
Similar
2
Refers to spreading the costs of production over the number of units produced. The cost of a product per unit declines as the absolute volume per period increases.
Economies of scale
3
may have second thoughts about attempting entry if they conclude that existing firms will mount well-funded campaigns to hamper (or even defeat) a newcomer’s attempt to gain a market foothold big enough to compete successfully
entry candidates
4
Competitive pressures coming from the producers of substitute products
Threat of substitute
5
the ability and willingness of industry incumbents to launch strong defensive maneuvers to maintain their positions and make it harder for a newcomer to compete successfully and profitably
second factor affecting the threat of entry
6
Suppliers can exert bargaining power on participants in an industry by _______________ goods and services and limit their opportunities to find better deals.
Raising prices or reducing the quality purchased
7
Refers to the degree of the rivalry of competing firms in the industry
competitive rivalry
8
Cost advantages that are hard to replicate by new entrants
1. proprietary technologies 2. access to the best raw materials sources 3. assets purchased at pre-inflation prices 4. government subsidies 5. favorable locations 6. exclusive partnerships with the best and cheapest supplier 7. low fixed costs (older facilities, usually depreciated)
9
If entry barriers are high and/or the newcomer can anticipate a sharp retaliation from established competitors
the threat of entry is low
10
refers to the possibility that the profits of established firms in the industry may be eroded by new competitors.
threat of new entrants
11
Competitive pressures coming from other firms in the industry
competitive rivalry
12
There is a need to invest large financial resources (small-oil industry players – UniOil, FlyV) The most obvious capital requirements for new entrants relate to manufacturing facilities and equipment, introductory advertising and sales promotion campaigns, working capital to finance inventories and customer credit, and sufficient cash to cover startup costs.
Capital requirements
13
Extent to which customers perceive differences among products & services
Product differentiation/Brand identification
14
The extent of the threat depends on existing barriers to entry (whether high or low) and the combined reactions from existing competitors.
Threat of new entrants
15
Retailers must be recruited and convinced to give a new brand ample display space and an adequate trial period
Access to distribution channels
16
-economic, strategic, and emotional factors that keep firms competing even though they may be earning low or negative returns on their investments
exit barriers
17
Whether the suppliers of industry members represent a weak or strong competitive force depends on the degree to which suppliers have sufficient bargaining power to influence the terms and conditions of supply in their favor
Bargaining Power of Suppliers
18
Creates a barrier by forcing entrants to spend heavily on advertising and sales promotion to overcome customer loyalty and build its own clientele
Product differentiation/Brand Identification
19
Customers have strong brand preferences and high degrees of loyalty to seller
Product differentiation/Brand identification
20
Sources of Barriers to entry
1. Economies of Scale 2. Product Differentiation/Brand Identification 3. CapitalRequirements 4. Cost advantages that are hard to replicate by new entrants 5. Access to distribution channels 6. Restrictive regulatory and trade policies
21
Government-mandated safety regulations and environmental pollution standards also create entry barriers because they raise entry costs.
Restrictive regulatory and trade policies
22
Industries with products as commodities (steel, coal), have intense rivalry
degree of product differentiation
23
Competitive pressures stemming from supplier bargaining power
bargaining power of supplier
24
products and services outside the industry that serve the same customer needs as the industry’s products and services.
substitute product or services
25
Buyer group is powerful if:
1. Concentrated or purchases in large volumes 2. Undifferentiated Products. Are products standardized? 3. Profitability of buyers. Are buyers forced to be tough? 4. The buyers pose a credible threat of backward integration 5. The industry’s product is unimportant to the quality of the buyer’s products or Services 6. Switching costs. It is easy for buyers to switch their suppliers?
26
often must contend with the power of manufacturers whose products enjoy well-known brand names, since consumers expect to find these products on the shelves of the retail stores where they shop. This provides the manufacturer with a degree of pricing power and often the ability to push hard for favorable shelf displays
Small-scale retailers
27
Competitive pressures stemming from buyer bargaining power
bargaining power of buyers
28
Wholesale distributors may be reluctant to take on a product that lacks buyer recognition
Access to distribution channels
29
The threat of limiting the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge without losing too many customers to substitute products.
threat of substitute
30
New entrants to an industry bring new capacity, have the desire to gain market share, and often bring substantial resources with them.
threat to new entrants
31
Government agencies can also limit or even bar entry by requiring licenses and permits
Restrictive regulatory and trade policies
32
The new entrant’s need to secure distribution for its product can create a barrier to entry Not only distribution channels but also including shelf space in supermarkets
Access to distribution channels
33
High fixed costs industry, full capacity operation, and cut prices
structure of industry cost
34
Threat of entry is a stronger force when
1. Incumbents are unlikely to make retaliatory moves against new entrants 2. Entry barriers are low.
35
market structure characterized by a large number of buyers and sellers of an identical product.
Perfect competition
36
Supplier bargaining power is stronger when
1. Suppliers’ products and/or services are in short supply. 2. Suppliers’ products and/or services are differentiated. 3. Industry members incur high costs in switching their purchases to alternative suppliers. 4. The supplier industry is more concentrated than the industry it sells to and is dominated by a few large companies. 5. Industry members do not have the potential to integrate backward in order to self- manufacture their own inputs. 6. Suppliers’ products do not account for more than a small fraction of the total costs of the industry‘s products. 7. There are no good substitutes for what the suppliers provide. 8. Industry members do not account for a big fraction of suppliers’ sales.
37
is a barrier to entry by forcing the aspirant either to come in on a large scale or to accept a cost disadvantage (e.g. soft drink industry: production, distribution & marketing)
Economies of scale
38
Competitive pressures coming from the threat of entry of new rivals
threat of new entrants
39
These barriers discourage new entry because they act to boost financial requirements and lower expected profit margins for new entrants
Product differentiation/Brand Identification
40
In international markets, host governments commonly limit foreign entry and must approve all foreign investment application
Restrictive regulatory and trade policies
41
Entry barriers are high (and threat of entry is low) when
Incumbents have large cost advantages over potential entrants
42
More Intense (lots of small/equally sized firms)
structure of the competition
43
Reduced rivalry if high switching costs
switching costs
44
It exists when individual producers have no influence on market prices.
Perfect competition
45
General competitive conditions that influence businesses within an industry
industry environment
46
Customers/buyers likewise can force down prices, demand higher quality or more services, and play competitors off against each other – all at the expense of industry profits
Bargaining power of buyers
47
Entry barriers are high (and threat of entry is low) when
1. Customers with strong brand preferences and/or loyalty to incumbent sellers 2. Patents and other forms of intellectual property protection 3. Strong network effects 4. High capital requirements 5. Limited new access to distribution channels and shelf space 6. Restrictive government policies 7. Restrictive trade policies
48
Incumbents have large cost advantages over potential entrants due to
1. High economies of scale 2. Significant experience-based cost advantages or learning curve effects 3. Other cost advantages (e.g., favorable access to inputs, technology, location, or low fixed costs)
49
a collection of firms that offer similar products or services.
industry
50
Simply, savings that companies achieve because of increased volume
economies of scale
51
A supplier is powerful if:
1. Supplier group is dominated by few large companies and is more concentrated (few firms dominate the industry) than the industry it sells to 2. Suppliers provide differentiated inputs that enhance the performance of the industry’s product. 3. Demand for suppliers’ products is high and the products are in short supply. 4. It is difficult or costly for industry members to switch their purchases from one supplier to another. 5. Industry members are incapable of integrating backward to self-manufacture items they have been buying from suppliers. 6. Suppliers provide an item that accounts for no more than a small fraction of the costs of the industry’s product. 7. Good substitutes are not available for the suppliers’ products. 8. Industry members are not major customers of suppliers.
52
tariffs and trade restrictions to raise entry barriers for foreign firms and protect domestic producers from outside competition
Restrictive regulatory and trade policies