Industry concentration refers to the extent to which large f…

Industry concentration refers to the extent to which large firms dominate an industry. Buyers and suppliers generally have more bargaining power when they operate in concentrated industries. This is because the firms that do business with them have fewer options when seeking buyers and suppliers. Full-service restaurants are considered ‘fragmented’ industries. What level of concentration would this industry fall under?

Joe Westwood wants to join the car industry. He is creating…

Joe Westwood wants to join the car industry. He is creating the concept of a new car but believes he will struggle to be competitive because there are already existing competitors that have been in the automotive industry for a while. They have plenty of cash to continue growing while Joe does not have enough. He decides to not join the industry because of the difficulty to join and the shortage of cash. This is an example of _______________.

Apple has created a strong brand reputation that represents…

Apple has created a strong brand reputation that represents exclusivity. One could say consumers of Apple are willing to forego certain features available to other consumers in exchange for perceived status. Consumers of Apple products pay a premium that they are not likely to pay anywhere else, even if the rival company produces products with similar features and uses the same materials to make the product. This is a good example of __________.