Asked by Edwin Denman on Sep 24, 2024
Verified
In the IO perspective,it is important to enter an industry with
A) High barriers to entry
B) High buyer power
C) High supplier power
D) All of the above
High Barriers
Substantial obstacles or challenges that prevent or hinder entry into a market or industry.
Buyer Power
Refers to the ability of consumers to influence the pricing and quality of goods and services in a market due to their collective purchasing power.
Supplier Power
Refers to the ability of providers of goods or services to dictate terms and influence prices in the marketplace due to their strong position vis-à-vis buyers.
- Identify the factors that influence firm competitiveness within an industry according to the IO perspective.
Verified Answer
KP
Keyuri Parikh4 days ago
Final Answer :
A
Explanation :
High barriers to entry mean that it's difficult for new firms to enter the industry, reducing the competition and increasing the profitability of the existing firms. This is beneficial for companies entering the industry from an IO perspective. High buyer or supplier power, on the other hand, means that the buyers or suppliers have more bargaining power than the industry firms, which can negatively affect firms' profitability.
Learning Objectives
- Identify the factors that influence firm competitiveness within an industry according to the IO perspective.