2.0 THREAT OF SUBSTITUTES PRODUCTS 3.1 Switching costs Switching cost is a negative cost that consumers get regarding to the changing suppliers‚ brands‚ or products (Investopedia 2012). There are four different methods of switching costs that involve when substituting to another product. The four different methods are learning cost‚ opportunity cost‚ implementation cost‚ and conversion cost. Each method has own different values‚ however these cost does not involved to the electronic industry
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A Teacher‚ A Substitute‚ and a Student American‚ Charles Baxter‚ wrote the contemporary short story‚ “Gryphon‚” in the United States‚ in 1985. The time represented in the story is roughly‚ the 1960s; during which there is a moral and philosophical upheaval occurring throughout the nation. The country (USA)‚ is in the midst of the Vietnam War‚ the “cold-war‚” a sexual revolution‚ and experiences a huge spasm and clash of ideals between parents and children of the “baby-boomer” generation. The action
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No-Calorie Powder May Substitute for Food’s Fat George E. Inglett of the U.S. Department of Agriculture’s Biopolymer Research Unit in Peoria III invented a no-calorie fat substitute called Z-Trim. It is a mix of crushed fibers made from the hulls of grains. It can replace the fat and some of the carbohydrates in foods such as chocolates‚ brownies‚ cheese‚ and ground beef. He spent three years trying to perfect Z-Trim to be smooth because he made it out of tough hulls of corn‚ oats‚ and rice
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PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
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Perfect competition describes a market structure in which there is no single firm powerful or large enough to influence the price of the product. In monopolistic competition‚ numerous sellers differentiated products that are similar but not perfect substitutes for each other. There are some similarities that exist between these two market structures. Firstly‚ in both market structures‚ the number of firms is huge. This is especially true for perfect competition‚ where the number of firms in the industry
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Industry Definition: The industry analyzed is specialty coffee retailing in North America. Threat of New Entrants: 1. Economies of Scale are low. The price of opening a new store does not gain substantial economies of scale when a firm already has many stores. Variable prices such as Aribica beans‚ cups‚ whipped cream‚ etc. will benefit from some economy of scale‚ but not enough to deter new entrants. 2. Capital Requirements are low. Property and inventory costs are not substantial enough to deter
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5) No substitutes 6) Potential forward integration. 3. Buyers: people who are customers of an industry. An industry is more likely to be unattractive with high bargaining power from buyers. Buyer’s power comes from: 1) High concentration; 2) Standardized product; 3) Few switching costs; 4) Potential backward integration; 5) High price sensitivity. 4. Substitutes: alternatives to the industry product. The higher the threat of substitutes‚ the less profitable the industry is. If a substitute has a
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SECTION 3. - ALTERNATIVE OBLIGATIONS An alternative obligation is one wherein various prestations are due but the performance of one of them is sufficient as determined by the choice‚ which‚ as a general rule‚ belongs to the debtor. Right of choice‚ as a rule‚ given to debtor. GENERAL RULE: The right to choose belongs to the debtor/ obligor Except: When the right has been expressly granted to the creditor Right of choice of debtor not absolute. LIMITATION ON THE DEBTOR’S CHOICE (1) The debtor
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Bullock A reason that substitute goods are goods that can be used in activities aimed to satisfy the same needs‚ one in the place of another. Also the buyer carries out an actual and conscious process of choice about them‚ which leads the buyer to prefer one to another. A reason that products are considered compliments is because a product can be considered a complement when it shares a beneficial relationship with another product offering. In an economic sense‚ when the price of a good rises‚ the demand
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spending a lot of time and money to come in to the market‚ increase cost advantage‚ and establish loyal customer base. Threat of Substitutes: is quite temperate since customers do not face great substituting cost when substitute products are lower in price‚ the quality performance capability of substitute products is not greater. Lululemon offset the appeal of substitute products by posing superior products with distinctive customer experience that is highly valued. Bargaining Power of Buyers: low
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