11 Jul BARGAINING POWER OF SUPPLIERS
Analyzing the external environment (Connect, Perform) Reinforce your knowledge of the terminology used to discuss a firm’s external environment by filling in the blanks in the following sentences. The company Proctor & Gamble gained ___________ by creating a new sponge product for its Mr. Clean brand, the Magic Eraser. People like the sponge’s texture and its ability to clean surfaces throughout the house.
a) barrier to entry
b) an incumbency advantage
c) bargaining power
d) a first-mover advantage
The ____________ is influenced by all of the other competitive forces.
a) rivarly among competitors
b)bargaining power of buyers
c)bargaining power of suppliers
d)potential of new entrants
Which of the following customer groups would have significant amounts of power over their indicated suppliers? [THERE IS MORE THAN ONE ANSWER] Customers buying the latest iPhone, which is a highly differentiated product Large companies such as Dow Chemical or Shell Oil, which purchase office supplies from many different dealers Amazon, which purchases an extremely large amount of shipping from UPS An elementary school that faces extremely high costs when deciding to change to a different textbook for teaching history to sixth graders Read the following information and use your knowledge of Porter’s five strategic forces to complete the sentence that follows. Management in the News Can You Make Money on YouTube? On October 10, 2006, Google purchased YouTube for $1.65 billion. In 2014, Business Insider reported that Facebook has been taking market share from YouTube, with desktop video views up 38.5% over the previous year. In contrast, YouTube’s video views were up only 4.8% year over year. For the moment, however, YouTube still dominates the industry, garnering over half of all unique desktop video viewers. Other video providers are AOL, Yahoo!, Vidible, and Vevo TV. According to the New York Times in 2008, some people who posted videos on YouTube were making six-figure incomes. Some even quit their “day job” and made their YouTube channel their career. The costs of making a popular video were very low. In this relatively new market, the people posting videos are suppliers, and the people watching the videos—and watching advertisements in exchange for the pleasure of viewing the videos—are buyers. By 2014, however, the New York Times was reporting that the prospect of making it big by becoming a video star had dimmed considerably. Since Google implemented a partners for both viewers and ad dollars. At the temping in an office. Someone who established a highly popular YouTube channel in the early days of streaming independently produced video is an embodiment of ; this video star’s loyal following constitutes a barrier to entry for others. 1st part choice are:
a) first mover advantage
b)rivarly among competitors
c)the threat of substitutes d)bargainning power 2nd part of question choices are: a) high b) low
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