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Unformatted text preview: Many Suppliers (Developing Ctrys) Standardized Product Threat of Entry (Lo) Brand Recognition Complicated Supply Chain Economies of Scale Extent of Rivalry (Hi) J Crew, A&E, A&F Many Competitors Slow Market Growth Low Switching Cost Power of Buyers(Moderate) Middle and Upper Class Standardized Product Price Sensitive Threat of Substitutes (Hi) High End, Discount Retailers, Department stores Increased Quality at Low Cost Differentiated product available Low Switching Cost Overall Assessment of Industry The Industry profitability is expected to be equal Economic Average The Industry actually achieves higher profitability then then Economic Average due to the importance of having Lo Power of Suppliers and only moderate power of buyers (ROE=15%)...
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This document was uploaded on 11/04/2011 for the course BUSI 698 at UNC.
- Fall '09