barriers to entry forces

2 how would you characterize the customers in your

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2. How would you characterize the customers in your industry: (a) very few customers each buying a large percentage of your total output versus (b) many customers each purchasing a small amount of what you produce or offer as service? 3. Identify (at most) 3 reasons that would prevent your customer from going to your competitor. 4. How easy is it for your customer to evaluate the relative merits of the products/services in your industry? Explain 5. Do your customers mainly look at price to determine where they will make their purchase or do they also look at quality, customer experience, features, etc.? 6. Is it customary in your industry to offer incentives to the customers such as discount coupons, free samples, etc.? SUPPLIERS 1. Most of the inputs provided to my firm are standard, undifferentiated items which vary only on price and location of the supplier (True or False) T ____ F ____ 2. If False, then how many suppliers exist that provide 4
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unique raw materials or components that other suppliers are unable to provide? 3. If False, then what percentage of the inputs required by your firm can be characterized as unique or difficult to procure from others? 4. Answer the following (True or False) a) My firm’s inputs (materials, labor, supplies, services, etc.) are standard rather than unique or differentiated. T ____ F ____ b) I can switch between suppliers quickly and cheaply. T ____ F ____ c) My suppliers would find it difficult to enter my business or my customers would find it difficult to produce what I make by themselves. T ____ F ____ d) I can substitute inputs readily. T ____ F ____ e) I have many potential suppliers. T ____ F ____ f) My business is important to my suppliers. T ____ F ____ g) My cost of purchases has a significant influence on my overall costs. T ____ F ____ SUBSTITUTES 1. If buyers do not wish to purchase from our industry, can they can purchase similar products and/or services from the following industries (If yes, then please list. If no, indicate as such) 2. While such industries exist the buyers will have to incur substantial costs in doing so. T ____ F ____ 3. The buyers in this industry do not really care to look for substitute industries in which to participate T ____ F ____ 5
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Guidelines : Intro - Macy’s is a stabilized company in which barriers to entry are very difficult to achieve. There are numerous obstacles in which new firms or prospective competitors would be facing. The name recognition of the well-known competitors already in existence means that there are already customers who have attained loyalty to the respective company. Also, the Major competitors - Because there are a sufficient number of major and recognizable department stores currently available, such as Nordstrom, J.C. Penney, and Saks 5 th
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