Identify future changes in industry structure that would cause one to take the lead

Identify future changes in industry structure that would cause one to take the lead.-5 force framework Quynh Anh Nguyen 1.. Entry barriers có 7 major sources: Supply-side economies of sc

Identify future changes in industry structure that would cause one to take the lead.-5 force framework

Quynh Anh Nguyen

1 Entry barriers có 7 major sources:

Supply-side economies of scale: scale lớn thì giảm cost, Supply-side scale economies deter entry by forcing the aspiring entrant either to come into the industry on a large scale, which requires dislodging entrenched competitors, or to accept a cost disadvantage

2 Demand-side benefi ts of scale: customers thích mua hàng của large firms vs nh kh hơn

Demand-side benefi ts of scale discourage entry by limiting the willingness of customers to buy from a newcomer and by reducing the price the newcomer can command until it builds up a large base of customers

3 Customer switching costs: Switching costs are fi xed costs that buyers face when they change suppliers

The larger the switching costs, the harder it will be for an entrant to gain customers

ở Disney + , fee tính theo năm chứ ko theo tháng, nên switching cost cao so vs netflix là cost theo tháng

4 Capital requirements: cần có capital resource để enter market

5 Incumbency advantages independent of size cost or quality advantages that accrue through luck or over time, là những thứ cty hiện tại đã có , thằng entrants phải cố vượt qua để có thể vô

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6 Unequal access to distribution channels: incumbents may have tied up existing channels, preventing entry, or raising costs of creating

7 Restrictive government policy