Concentration high undifferentiated products low

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Unformatted text preview: of Buyers • • • • • High buyer concentration High Undifferentiated products Low switching costs Low profits in buyers’ industry Low Threat of backward integration by Threat buyers buyers • Product unimportant to quality of Product buyers’ products buyers’ • Buyer has full information Threat from substitutes is large if: Threat Threat of Substitutes • • • Availability of close substitute Switching cost is low Price value performance of substitutes Price is similar is • High profitability of producers of High substitutes Inter-firm rivalry would be high if: Inter-firm rivalry • • • • • • • • Large number of competitors Many equally balanced competitors Slow growth industry Lack of differentiation Capacity added in large increments Low switching costs for customers High strategic stakes High exit barriers...
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This document was uploaded on 01/26/2014.

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