Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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please refer the below case link and solve the questons

https://www.scribd.com/document/360480894/Caso-The-Rise-and-Fall-of-BlackBerry

Porter’s 5 forces modelfactors

1. Bargaining Power with respect to New Entrants•Economies of Scale•Product Differentiation•Capital Requirements•Switching Costs•Access to Distribution Channels•Cost Disadvantages independent of Scale•Government Policy

2.Threat of New Substitutes•Availability of substitutesthat can perform same or similar functions•Potential returns of an industry in terms of profits•Ability of the company to charge higher prices

3.Bargaining Power vis-à-vis Competition: •Numerous or few equally balanced competitors•Slow industrial growth•High fixed or storage costs•Lack of product differentiation•Industry Capacity•Diversecompetitors•High strategic stakes

4.Bargaining power of Buyers (Customers)•Availability of Choice to Buyers•Large number of customers•Product is very important to customer•Dependency on distributors•Buyer information availability•Buyer price sensitivity

5.Bargaining power of Suppliers (Vendors)•Cost of switching suppliers•Volume is critical to suppliers•Critical production inputs are similar•Inputs have little impact on costs•Diverse distribution channel•Concentration of suppliers•Competition among suppliers

Q1: Please pick up 2 most important factorsfrom each Force and discussin detail. Your answer should have a conclusion about relative bargaining power (high/neutral/low) with assumedconditions and supporting arguments

Q2: Give your conclusions on what do you think was the most important bargaining power that became so weak over time that it led to the downfall of Blackberry. Give supporting arguments

 

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