ADMS 3521 Lecture Notes - Lecture 10: Account Aggregation, Gross Margin, Price Discrimination
12 Apr 2017
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Session 10 november 17, read chapter 9 and 10. Some predicted that the retail industry would be revolutionized, however the reality was : online consumers are brand-driven rather than primarily cost-driven. Explain how to analyze the economic viability of an online firm. Barriers to entry expenses that will make it difficult to enter the industry. Power of suppliers ability of firms in the industry to bargain effectively for lower prices from suppliers. Power of customers ability of customers for a particular product to shop among the firm"s competitors, thus keeping prices down. Existence of substitute products present or future availability of products with similar functions. Social and legal challenges facing the firm examined to determine if the firm has taken into account consumer trust issues (privacy and security) and if the firm may be vulnerable to legal challenges. Key financial factors: cost of sales cost of products sold including all related costs.
