What does porter mean by switching costs

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Just skimming the articles and coming up with a one or two sentences answer to each question is not considered "prepared." Please put some time into having complete answers for all questions.

Introduction to strategy and Industry Profit Potential: Read items (1)-(6) from the reading list at the end.

Questions:

1. Give some examples of industries with large capital requirements in which entry has occurred.

a. What does this suggest about the role of capital requirements as a barrier to entry?

2. What does Porter mean by "switching costs"? Give some specific examples that you are familiar with.

3. Evaluate the less-than-load (LTL) trucking industry using structural analysis (that is, five forces) tools.

a. How does this market differ from full-load trucking? What key resources do the LTL firms have that full-load firms don't?

b. Do you think the price increase is likely to hold? Why or why not?

c. What potential future threats exist?

4. Digital pizza ordering clearly influences the labor costs that companies face and so is partly about mitigating supplier power. But, can you think of any ways in which digital pizza ordering affects the other five forces?

5. Based on the Netflix articles and whatever else you might know:

a. Why did Netflix succeed initially (in the mail order DVD market of the late 1990s and early 2000s)?

b. What are its prospects for the future?

Articles -

1. How Competitive Forces Shape Strategy by Michael E. Porter

2. Yellow Corp. Trucking Unit to Raise Rates 4.9% By Daniel Machalaba.

3. Why Papa John's and Domino's Are All about Digital Pizza Ordering by Adam Levy

4. Netflix The mail-order movie house that clobbered Blockbuster By Timothy J. Mullaney

5. The Wall Street Journal - Media: A Changed Tune on Netflix - Some Media Firms Shift Stance on Video Service, Seeing a Potential to help TV by Jessica E. Vascellaro, Lauren A.E. Schuker and Sam Schechner.

Attachment:- Articles.rar

Reference no: EM131385090

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2/7/2017 4:25:28 AM

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