COMM101 Lecture Notes - Lecture 8: Capital Gain, Risk Premium, In Rainbows
7 Oct 2014
School
Department
Course
Professor
Document Summary
The factor that determines power is # of subs and ease of switching to them, the greater the #, the greater the amt of competition from them. Substitutes limit the price you can charge because as the price of the sub goes down compared to your product and it becomes easier to switch, the greater the pressure you face to keep your price down. You can address this force by convincing customers that your product is unique/can"t be substituted, and by locking customers in. Explain how the elements that make the entrepreneurial process successful are similar/related to the diamond-e. 3 elements that make the entrepreneurial process successful are the entrepreneur, opportunity, and resources. Opportunity piece in the process is similar to the diamond-e, for a strategy to be successful, the environment has to be supportive of it, i. e. the opportunity the strategy is pursuing makes sense given the environment.
