IO Tools: Greenwald's Model

Question 1

According to Greenwald’s model, a competitive advantage due to demand is

Answer 1

Switching costs
Consumer Loyalty to a brand
Consumer loyalty to product
Costs of looking for information

Question 2

Is the market size relative according to Greenwald’s model?

Answer 2

Yes

Question 3

What is a competitive advantage

Answer 3

Being able to do what rival firms cannot

Question 4

What is the market defined by according to Greenwald’s model?

Answer 4

The product and the territory

Question 5

The variables that Greenwald’s Model uses to define a firm’s relevant market are…

Answer 5

The firm’s product and the territory where the firm operates

Question 6

Name the Traditional Models to analyze firms

Answer 6

Value chain and the “Five Forces” model

Question 7

How does a value chain analyze firms

Answer 7

By decomposing the process to see how much value is added at each step of production

Question 8

What are the 5 Forces?

Answer 8

• Supplier Bargaining Power
• Existing Barriers to Entry,
• Substitutes and Complements,
• Consumer Bargaining power
• rivalry between competitors

Question 9

What are the barriers of entry according to Greenwald’s model?

Answer 9

Economies of Scale and Capital Requirements

Question 10

What are the competitive advantages due to supply (Greenwald’s Model)?

Answer 10

• Patents and legal rights
• Access to cheap inputs
• Economies of scale