chapter 4 Flashcards
1
Q
Porter’s five forces model
5
A
The state of competition and profit potential in an industry depends on five basic competitive forces:
- new entrants
- suppliers
- buyers
- substitutes
- market competitors
2
Q
the failure of a company to define its organizational purpose from a broad consumer orientation (seller defines the competition field to narrowly)
A
market myopia
3
Q
A business model in which customers are able to make short-term rentals of assets owned by service providers, typically through an online marketplace. The sharing economy model is most likely to be used when the price of a particular asset is high and the asset is not fully utilized all the time
A
The sharing economy
