MGT 3659 Chapter Notes - Chapter 3: Coopetition, Market Power, Network Effect
Document Summary
Competitive industry structure elements and features common to all industries, including the number and size of competitors, the firms" degree of pricing power, the type of product or service offered, and the height of entry barriers. Complement a product, service, or competency that adds value to the original product offering when the two are used in tandem. Complementor a company that provides a good or service that leads customers to value your firm"s offering more when the two are combined. Co-opetition cooperation by competitors to achieve a strategic objective. Entry barriers obstacles that determine how easily a firm can enter an industry and often significantly impact industry profit potential. Exit barriers obstacles that determine how easily a firm can leave an industry. Firm effects firm performance attributed to the actions managers take. Five forces model a framework that identifies five forces that determine the profit potential of an industry and shape a firm"s competitive strategy.
