Question 1: Competitors and suppliers
Online streaming industries are Hulu, YouTube, Netflix, Starz, Prime Video, Showtime, and HBO Now. On the other hand, the suppliers are Fox, Universal, and Disney.
Question 2: Competitors in a different industry
Competitors in different industries are hiring movie theatres to deliver content on big screens, including Cinemark, Cineplex, Celebrity, and AMC.
Question 3: Key Element
The key element industry analysis is trying to assess how profitable an average competitor is likely to offer differentiated products for consistently high prices.
Question 4: Economic Rivalry
Economic force rivalry may capture reduced prices for buyers companies undercut each other in price wars.
Question 4a: High rivalry
Question 4b: Understand the difference
Wendy’s and McDonald’s fast foods compete based on price wars while Five Guys and Chipotle compete with differentiated products.
Question 5: Economic force threats of entrants
Economic threat accompanied by new competitors results in lowered prices due to competition; otherwise, they find it easy to enter. Profit margins are still low, and there is no name to keep.
Question 6: Threats to entrance
Industries have higher threats to the entrance
Question 7: Economic force buyer power
The buyer power captures the extent to which buyers can negotiate for more values and lower prices.
Question 8: Buyers Power
Buyers have higher power when there are fewer buyers, when they have low switching cost, and when they highly price sensitive.
Question 9: Economic force supplier power
Supplier power captures the extent to which suppliers can negotiate for higher prices within the industry.
Question 10: Suppliers powers
Suppliers tend to have high powers when there are few suppliers, and when it is costly to switch suppliers.
Question 11: Threat of substitute
The threat of the substitutes captures how other companies do the same job but in different ways.
Question 12: The higher threat of substitute
The threat of substitute foes higher
Question 13: Complements
Complements capture the extent to which some other products and services increase the demand for the job customers hire your industry to do.
Question 14: When do complements enhance industry profits?
Complements enhance profits when customers perceive higher value when consuming your products, when complements are available at attractive prices, and when the complements’ performance is high.
Question 15: Complements and substitutes impact of profits
Complements and substitutes affect how many buyers come to this industry instead of any other industry meeting their needs. Substitutes peel away customers taking customers to other industries while complements attract more customers to our industry.
Question 16: New entrant’s impact on profits
New companies will fight for the same customers in the market, forcing firms to have reduced inflows. Therefore, companies have to fight for market share by dropping prices.
Kryscynski, D. (2021). Industry Analysis. YouTube. https://www.youtube.com/watch?v=UUKAX0E4ckM
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