Discussion 3,4,5 – Threat of Substitute Products and Services
Managing In The Global Environment
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Discussion 3,4,5
3) Threat of Substitute Products and Services (DEFINE According to Porter) — (a) What is the availability of other products that a customer can purchase from outside the industry? (b) What is the buyer’s propensity to substitute? (c) Threat of Substitute Products/Services = High or Low – possibly moderate (Explain) (d) Consumer switching cost = high or low? (Explain why)
4) Bargaining Power of Suppliers (DEFINE According to Porter) — (a) Differentiation of inputs, (b) Switching costs of suppliers and firms in industry, (c) Threat of backward integration by firms in the industry, (d) Availability of substitute suppliers (e) Bargaining Power of Suppliers = High or Low – possibly moderate (Explain why)
5) Bargaining Power of Buyers (Customers) (DEFINE According to Porter) — (a) When are the customers in an industry powerful? (b) Ability to backward integrate, (c) Switching costs, (d) Bargaining leverage, (e) Buyer sensitivity to changes in price, (f) Bargaining Power of Buyers (Customers) = High or Low – possibly moderate (Explain why)
Explanation & Answer
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