midnight, Friday, January 30, 2015
. In the Powerpoint notes I gave you, I gave pluses and minuses using Porter’s five forces of competition: Bargaining Power of Buyers, Rivalry Among Competitors, Threats of Substitutes, Bargaining Power of Suppliers, and New Industry Boundaries. Each answer should be between 150 and 200 words.
BARGAINING POWER OFBUYERS
â€¢Minuses:â€“Can increase buyer power by giving buyers a better
true product performance, allow them toplay one manufacturer off anothe
â€“Buyers may also
find that having access to product usage data
can decrease their reliance on the manufacturer for adviceand support.
â€“Product â€œas a serviceâ€ may allow switching
to another manufactu
Answer Both Questions.
1. In the minuses for the Bargaining Power of Buyers (and also in the Threats of Substitutes), I say a minus is “Product as a service” (from the viewpoint of the manufacturer). What is “Product as a Service.” Give one example and explain how the “service” allows easier switching to another manufacturer.
2. Try to think of a company that now manufactures a range of related products. How might that company expand into more of an ecosystem where the products are connected and information is added from outside sources to create even more value for customers?
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