ADMS 1000 Chapter Notes - Chapter 5: Switching Barriers, Strategic Management, Swot Analysis

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Natalie Guriel

Document Summary

Although strategy is goal directed, it can sometimes unintentionally evolve with either the internal or external environment. Industry: a group of organizations that share similar resource requirements, including raw materials, labour technology and customers. These forces can either independently or jointly affect the attractiveness of the industry. New entrants can take two basic forms : new startups and diversification of existing firms in other industries. Refer to spreading the costs of production over the number of units produced. Economies of scale: spreading the costs of production over the number of units produced, which can provide incumbent firms with costs advantages that create a barrier to entry for new entrants. For some industries the required capital to establish a new firm is significant. The level of required capital for entering certain industries creates barriers for potential new entrants. Switching costs: the costs, both monetary and psychological, associated with changing form one supplier to another from a buyer"s perspective.