Quis Econ Flashcards
relating to any activity of creating, buying or
selling any kind of commodities or even providing
services to prospect buyers or clients.
Business
the lifeblood of any country’s economy. For this
reason, the topic on identification of business opportunities
through analysis of industry and environment, is a relevant
topic to be considered in the discussion
Business
include inflation rates, interest
rates, trade deficits or surplus, personal savings rate and
gross domestic product. These segments are all related
Economic segment
covers antitrust laws, taxation
laws, deregulation philosophies, labor training laws, and
educational philosophies and policies.
Political/legal segment
interests are women in the
workforce, workforce diversity, and attitudes about the
quality of work lifso
Sociocultural segments’
pertains to product innovations,
application of knowledge, focus of private and
government.
Technological segment
those related to important political
events, critical global markets, and newly industrialized
countries, different cultural and institutional attributes.
Global segments
concerns are energy
consumption, practices used to develop energy sources,
renewable energy efforts, minimizing a firm’s
environmental footprint, availability of water as a
resource, and producing environmentally friendly
produc
Physical Environmental segments
the message of
this segment on physical environment.
The care of mother nature
These segments are all relatedto determine how the economy performs
Economic segmen
segments
relate to the functions of the government in monitoring
the different economic and business related activities. The
government takes care of the proper use of its economic
resources
Political segment
This segment focuses on the role of
the human resources, its development and the society
Sociocultural segment
This segment supported R&D expenditures.
Modern technology aims to increase production with
limited cost.
Technological segments
This segment indicates the importance of understanding
the political, cultural, and economy of other countries in
order to compete in the international market
Global segment
population size, age
structure, geographic distribution, ethnic mix, and
income distribution. U
Demographic segment
A company’s power is affected by the force of new entrants
into its market
The threat of new entrants
This specifically deals with the ability of the customers to
drive prices down.
The Power of Buyers
powerful when there is no competition with
substitute products and the products make up an important part
of their buyers’ businesses.
Supplier
have the power to drive competition up they
threatening to increase their products or services’ prices or to
reduce the quality of the goods they provide.
Suppliers
Goods that
are interchanged with another
good.
Substitute goods
Competitors substitutions that can be used in place of a
company’s products or services pose a threat
The Threat of Product Substitutes
EXAMPLE: In the cosmetic industry, Avon and Mary Kay
have been two of the famous make up brands in the country.
But the entry of cosmetics brands that use organic and natural
ingredients has brought noticeable changes in the landscape
of the makeup industry
The threat of new entrants
If customers rely on a company to provide a tool
or service that can be substituted with another tool or service or by
performing the task manually, and this substitution is fairly easy
of low cost, a company’s power can be weakened.
Threat of Product Substitutes
The importance of this force is the number of competitors
and their ability to threaten a company.
The Intensity of Rivalry Among Competitors
