L4/5: Market Entry / Competitive Interactions (Porter's Five Forces…
L4/5: Market Entry / Competitive Interactions
AA vs JetBlue
Porter's Five Forces
Threat of Entry
Threat of Suppliers
Threat of Substitutes
Threat of Buyers
Threat of Rivalry
Competitors are coming up (Kroger, Walmart, BingoBox)
Learning about market uncertainty and technical aspects
(Still) not fully scaling up
Further investments in R&D
Learning investments may help to reduce uncertainty
Costs for customer education
Undeveloped supply/distribution channels (general market)
Immature enabling technologies/complements
Free rider effects for competitors
Exploiting buyer switching costs (Qwerty keyboard)
Preemption of scarce assets
Resource-based view (RBV)
Types of firms resources
Competences to transfer inputs into outputs
Innovation and creativity
Organisational (e.g. control systems)
Is the company effective structured in order to fully exploit its internal capabilities?
Is the resource costly to imitate?
Is the capability rare in the industry?
Value of the internal resources given?