theory. Buyer Power – Determining Factors¶ Several factors determine Porter’s Five Forces buyer bargaining power. If buyers are concentrated compared to sellers – if there are few buyers and many sellers – buyer power is high. If switching costs – the cost of switching from one seller’s product to another seller’s product – are low‚ the bargain power of buyers is high. If buyers can easily backward integrate – or begin to produce the seller’s product themselves – the bargain power of customers is
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different types of WAN equipment. Introduction to WAN Technologies This chapter introduces the various protocols and technologies used in wide-area network (WAN) environments. Topics summarized here include point-to-point links‚ circuit switching‚ packet switching‚ virtual circuits‚ dialup services‚ and WAN devices. Chapters in Part III‚ “WAN Protocols‚” address specific technologies in more detail. What Is a WAN? A WAN is a data communications network that covers a relatively broad geographic
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The Online Retail Industry Competitive Rivalry 1995-2004 The Threat of New Entrants The Power of Suppliers Degree of Competitive Rivalry Buyers Substitutes Introduction Before venturing into the online retail industry you need to be able to answer yes to the following questions. Are you entering an industry in which product development and innovation (as opposed manufacturing and marketing)‚ play a central role in bringing products/services to markets? Is the industry structure
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scale: Demand-side benefits 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: The larger the switching costs‚ the harder it will be for an entrant to gain customers. 4. Capital requirements: The need to invest large financial resources in order to compete can deter new entrants. 5. Incumbency advantages independent of size: incumbents
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T-carrier system and the multiplexing system it uses. O 332-334 Time division multiplexing 13. What are the two main WAN protocols used today? O 345 HDLC‚ PPP 14. What switching method saves capacity and uses less cable? O 348-349 Packet Switching 15. What was the first popular packet switching WAN protocol and what type of circuits did it use? O 351-354 Frame Relay and it used frame relay circuits 16. What is the key difference between a partial mesh and full mesh
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This paper will provide the recommendations for a network that will allow the connection of 50 different remote locations. Half of the remote locations will be required to connect with central headquarters 6 to 8 hours a day and send large files back and forth which consist of date‚ graphics and product design information including blueprints. The other 25 locations are sales offices and connect at the end of the day to upload daily/other periodic reports that total less than 5 megabytes of data
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suppliers. 2. Demand – side economies of Scale: Network effects. The desire of a consumer to buy a product increases with the number of other buyers that buy the product. 3. Customer Switching Costs: There may be costs to switching suppliers‚ such as retooling costs‚ retraining costs. ERP software has high switching costs‚ as does autoparts industries. 4. Capital Requirements: Need to invest large financial
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KIA value of Kia’s technology‚ design and innovative approach to brand management PEST MODEL Political: * Give incentive to buy American cars in NA and tariffs on imported cars. * Possible regulation on the number of cares exported or allowed to be * Government related contracts. | Economical: * imported cars face tariffs * Gas prices increasing continuously * Recession hit globally affecting the profit margins. * Due to recession people were looking to buy cheaper cars which
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competitive landscape- Depend on size of barriers to entry- Higher the barrier‚ weaker the threat‚ and greater the pricing power of existing participants | - Econ of scale- product differences an brand identify that will deter customers from switching- switching cost that product user will incur if switch- capital requirement to construct facilities and other infrastructure req. to entry industry- Access to distribution channels‚ if existing distributors are at or near capacity and may not be willing
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threat of new entrants will depend on the extent to which there are barriers to entry. These can be: economies of scale for the advantage of incumbents‚ high initial investment and fixed costs‚ controlled access to suppliers and distributors‚ high switching costs for consumers‚ legal requirements and restrictions‚ price retaliation‚ product differentiation and customer loyalty to established brands. The airline industry‚ for instance‚ is one of the least profitable industries as Porter calls it a “zero
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