9-9-09 - Price signaling - If more people go for a single...

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Bus 189 9/9/2009 Perfect competition – Price = Cost Very large # of firms with very competitive market – no profit More firms = more competition = decrease in price for the consumers Less firms = less competition = increase in price for the consumers Michael porter’s 5 forces? – industry analysis 1. How many competitors? 2. Four firm concentration ratio – all firms may not be the same size. CR4 = X > 70% Concentrated X < 20% Fragmented 3. Nature of competition – Price based / marketing
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Unformatted text preview: Price signaling - If more people go for a single market the demand for the market increases You are much better off if you have an advantage in cost/price Vertical integration company expanding their market Computer Industry Apple Dell HP IBM Futitsu Asos Toshiba Intel AMD ATI (SUN) Sergate . Buys and users are different Disintermediation take the middle man out of the value chain and go straight to the end user Bargaining power is the key a. Supplier b. Buyer...
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9-9-09 - Price signaling - If more people go for a single...

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