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(ASM)G3-Analzing Industry Structure (Threat of Entry (Barriers to entry…
(ASM)G3-Analzing Industry Structure
Threat of Entry
Economies of scale
Relative the Demand
Barriers to entry
Licenses
Patents
Capital requirements
Substantial exit costs
High sunk costs
Switch Costs
Excess capacity of incumbents
Brand Equity
Pioneering Brands
Access to Distribution Channels
Pre-commitment contract
Absolute Cost Advantages
Learning Curve
Entrant faces of retaliation
Introduce
Goal
Gain potential future profit
Misson
ability of understand the dynamics and the structure of an industry or market segment
Action
Five forces
Threat of substitues
Bargaining power of supplies
Threat of entry
Bargaining power of buyers
Intensity or rivalry
Example
US airline industry
chart
high profitability potential
medical device
aerospace
low profitability potential
estate
airline
Bargaining Power of Buyers
Low
Buyer are not monopsony
Many potential buyers
Small fraction of scale
Buyers have less options
Product or service are highly differentiated
High switch cost
Buyers cannot backward integrate
Buyers are segmented
Price information is opaque
Price discrimination
First degree
Second degree
Third degree
Bundling possible
Threat of Substitutes
