Содержание
- 2. Ideally, firms in an industry would like to capture most or all of the economic value
- 3. Michael Porter developed his Five Forces concept from basic ideas in the field of industrial economics.
- 4. BUYERS 3. Threat of new entrants MARKET COMPETITORS 1. Bargaining power of customers SUPPLIERS SUBSTITUTES 2.
- 5. The previous lecture illustrated the impact of two of Porter’s “Five Forces of Competition”: Bargaining Power
- 6. Let’s begin with the two forces implicit in the examples from last time. According to Porter
- 7. What will be the price (P) of the “product”? How much value (V) is created? Who
- 8. What will be the price (P) of the “product”? How much value (V) is created? Who
- 9. What will be the price of the “product”? How much value is created? Who captures that
- 10. Buyer power greater when: Buyers are more concentrated Buyers are better informed Implications ©2009 by Marvin
- 11. We also saw that an increase in producer rivalry makes the industry less attractive. Consider examples
- 12. Example 1.6 What will be the price of the “product”? How much value is created? Who
- 13. Example 1.7 What will be the price of the “product”? How much value is created? Who
- 14. Example 1.7 What will be the price of the “product”? How much value is created? Who
- 15. Example 1.7 What will be the price of the “product”? How much value is created? Who
- 16. Implications More direct competitors Industry excess capacity Exit barriers Rivalry increases with: ©2009 by Marvin Lieberman
- 17. Now let’s consider the threat of entry. ©2009 by Marvin Lieberman
- 18. Example 1.7 F1 c=0 F2 c=0 F1 and F2 have unit cost=0. Neither is capacity constrained.
- 19. Example 1.7a F1 c=0 F1 and F2 have unit cost=0. Neither is capacity constrained. If F2
- 20. Example 1.7b F1 c=0 F1 and F2 have unit cost=0. Neither is capacity constrained. If entry
- 21. Example 1.7c F1 c=0 F2 has higher cost. Neither firm is capacity constrained. If entry involves
- 22. Potential Entrants Almost like rival producers (when entry is fast) Impeded by “entry barriers” (costs of
- 23. Now let’s consider the impact of “supplier power.” We will add supplier(s) as an additional level
- 24. New Example. F1 and F2 have cost=0 and each can produce one unit. B1, B2 and
- 25. What is the input price (P*)? What is the product price? Who captures the value? P*=
- 26. What is the input price? What is the product price? Who captures the value? P*= 0
- 27. Implications Suppliers can siphon value from producers Power increases with supplier concentration Analysis similar to buyer
- 28. Application One example of a supplier with market power is Microsoft, whose “Windows” software has long
- 29. As we will see, substitutes act to reduce the economic value that firms in the focal
- 30. As we will see, substitutes act to reduce the economic value that firms in the focal
- 31. One buyer, able to consume one unit of “product,” and willing to pay $1. B1 F1
- 32. One firm able to produce one unit of “product” at cost=0. Example 1.1a. Let’s introduce a
- 33. One firm able to produce one unit of “product” at cost=0. Example 1.1b. Let’s reduce the
- 34. One firm able to produce one unit of “product” at cost=0. Example 1.1c. Now, let’s improve
- 35. Competition from Substitutes Reduces buyers’ WTP for the industry’s product. Strengthens bargaining position of single buyer.
- 36. Impact of Complements Sometimes called the “sixth industry force.” Can be viewed as opposite of substitutes.
- 37. Conclusions Bargaining Power of Buyers Rivalry Between Established Competitors Threat of Entry Bargaining Power of Suppliers
- 38. Conclusions The examples here have been relatively simple, but they illustrate the basic operation of the
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