Barriers to Entry - own “learning” Rivals may choose...

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9/22/2014 - stage of the industry tells you the structure of the industry - intense rivalry is when firms compete on price Barriers to Entry Have to enter at a disadvantage - Capital markets - if financial markets are efficient, access to capital should not prevent entry - are efficient - positive NPV projects get funded - Ease of imitation by incumbents - Capital requirements are not that big of a barrier of entry For the learning curve, the x axis is going to be # of units ever sold (or time in the market) Y axis is going to stay the same at unit cost Freerider effect - companies using other companies proprietary information and use it as their
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Unformatted text preview: own “learning” Rivals may choose not to compete on price - for buyers or suppliers---------9/29/2014 Brands can talk about tangible differences in the product or only the name You only have competitive advantage if you have added value----------10/8/2014 Suppliers - low power substitutes - rising threat, changing demographics threat of entrants - high Buyers - fountain high power bottlers:- exclusive to one- in perpetuity + exclusive territory coke fought to protect the exclusivity of the bottler’s territory + control retail price + can carry competing non-cola IF they don’t already carry the brand’s version...
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