Microeconomy
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Title: Microeconomy

Essay Details:

Subject: Business
Author: Vonnie F
Date: September 13, 2013
Level: University
Grade: A
Length: 2 / 309

Essay text:

Structural determinants of the intensity of competition (pag 5) Forces driving industry competition - Industry competitors (rivalry among existing firms) - Potential entrants (threat of new entrants) - Substitutes (threat of substitute products) - Suppliers (bargaining power of suppliers) - Buyers (bargaining power of buyers) Threat of entry ? Six barriers to entry: - economies of scale - product differentiation - capital requirements - switching costs - access to distribution channels - cost disadvantages independent of scale - government policy ? Expected retaliation (fight back) ? The entry deterring price Structural analysis and competitive strategy Positioning – build defense against competitive forces or find positioning where compettive forces are weak Influencing the balance – take the offensive, influence competitive forces Exploiting change – envisage industry evolution Chapter 2 – generic competitive strategies Three generic strategies ? overall cost leadership ? differentiation ? focus (niche) Risks of the three generic strategies...

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