Business economics Flashcards
1
Q
mean of playing a “good game”
A
where firms benefit from higher profits due to the industry that they operate in
2
Q
what are the 2 main parts of porters framework?
A
industry analysis: tools to help determine what the key factors in a market are
generic strategy formulation: tells the firm how it can be the most profitable within its industry
3
Q
3 factors that help you define a market
A
- define a set of competing products
- define the geographical area
- define the competitors
4
Q
porters 5 Forces framework
A
(all interactive)
- bargaining power of customers
- bargaining power of suppliers
- threat of new entrants
- threat of substitute products
- competitive rivalry within an industry
5
Q
4 main barriers to entry
A
- brand loyalty
- economies of scale
- control of inputs of distribution channels
- high capital requirements
6
Q
factors creating rivalry
A
- many competing firms
- lack of differentiation
- slow industry growth
- high storage costs
- large fixed costs
7
Q
collusion definition
A
where firms
