Economics 1021A/B Study Guide - Quiz Guide: Experience Curve Effects, Switching Barriers

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

The appendix offers a (cid:498)five-forces scorecard(cid:499) for doing industry analysis. The scorecard template includes specific questions about each force. Your responses should indicate whether this force poses a major threat to profits today, as well as identify trends. This central part of the model embraces the fight for market share and should start with a definition of the market. This includes all firms that constrain each other"s strategic decision making as well as both product market and geographic market definitions. In case of uncertainty whether to include a firm in the relevant market, it is always possible to exclude it from consideration of internal rivalry and still consider it in the assessment of substitutes and complements. Competition in a market can take place in price and non-price dimensions: Non-price competition influences profits by driving up fixed costs (e. g. , new product development) and marginal costs (e. g. , adding product features).