BUSS1000 Lecture Notes - Lecture 4: Hot Chocolate, Bloomberg Businessweek, Reed Hastings

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1000
• Professor: Steven Hitchcock

Document Summary

Define industry boundaries by identifying the relevant market. Define the boundary by substitutability on the demand side. Geographical boundaries may also apply to a market. Be conscious of purpose of classification remain wary of external influences: demand for the industry, organisation of the industry regulation of industry. Can be mixed key suppliers lots of power: buyer power. High = less attractive (subject to the whims of buyers) unable to establish self threat of new entry. Highly valued g/s is low low value g/s is higher substitution low = difficult to substitute whole industries: competitive rivalry. High valued - high: assess based on research into factors, criticism, defining the right industry". Everything will be wrong if industry is wrong: converging industries. E. g. target: complementary industries / products. E. g. hot chocolate and then marshmellow: based on structure-conduct-performance approach that has been largely replaced by the game theory. Power" and threats" not so useful for entrepreneurial firms.