Information Systems

Infs notes 1-22-15

* educated buyer the seller is facing pressure to pull down the price.

* Buys power is high

* Buyer power is low; when oil prices go up everything goes up.. this is a huge econ issue, the main producer opac? A bunch of countries formed a cartel, buyer has no control or power in this situation. Seller sets price, you cant shop around.

* Food, veggies buyer power is high, diff brands reduces buyer power they differentiate

* Supplier power- abilty of supplier to bump up price

* Opac only provider so supplier power went up,

* Fracking killed it, new tech made oil more readily available. Oil industry supplier power is low.

* Multiple supplies low supply power

* Very few suppliers of lithium batteries – east asia,

* Elon musk started a new lithium battery production, get rid of supplier power.

* Buyer power ability of buyer to push down the price.

* Threat of substitution power of customers to buy alternatives. Jack up price there are alternatives.

* How Netflix substituted blockbuster, the threat of this is bad. Leads to high competition and low margins.

* Threat of new entrants – power of comp to enter market. Big problems, not much to business low startup costs, business pop up anywhere.

* Space x elon musk space shiiit

* Starting a university is medium hard unlike space exploration

* Rivalry amongst competitors the power of competition. Look at all this through margins businesses do what they can to move margins even in a super small amount.

* Walmart will match any low price.

* If item is generic there are many subs.

* Five forces model ^ all this is it, use this to analyze the business and industry

* Loyalty program, concept of giving rewards – makes people come again and again buyer power goes down

* A way to reduce buyer power

* Other ways to reduce buyer power? Besides loyalty programs. Through contracts, and discounts, think cell phone...