Chap 3 Flashcards
What are the characteristics of a perfect competitive industry?
Many small firms
Commodity product
Low entry barriers
No pricing power for individual firms
What are the characteristics of a monopolistic industry?
Many firms
Differentiated product
Medium entry barriers
Some pricing power
What are the characteristics of a Oligopolistic Industry?
Few (large) firms
Differentiated product
High entry barriers
Some pricing power
What does co-opetition allow?
Cooperation among competitors
Creates a positive-sum game
Increases demand for the primary product
Enhances profit potential
What are the five questions for consider for market entry?
Who
Consideration of stakeholders
When
Consideration of industry life cycle
How
Overcoming barriers to entry
What
Options regarding product market, value chain, geography, and business model
Where
Product positioning
Pricing strategy
Potential partners
What brought on industry convergence?
Brought on by technological advances
What determines a firm performance ?
determine not only by the industry to which the firm belongs but also by the strategic group membership
What is the next step after conducting an external analysis?
the next step in external analysis is to examine characteristics (and changes in characteristics) of the industry that make it more or less favorable.
