Short Term as One Competitor Might Be Trying to Run Another Out of Business as They Are Engaged in a Loss Making War of Attrition. One of the Easiest Comparisons to Make is Price. Price Wars Often Happen When There is Low Switching Cost and Sellers Are Offering Generic Product. Rental Cars Fall Into This Category. Any Industry Battling Fiercely on Price Will Have Structural Limits to Profitability as Margins Are Cut to the Bone and Passed Onto Customers in the Form of Low Prices. If a Product is Perishable It Will Be Vulnerable to Price Cutting. We Often Think of Perishability in Terms of Food Useby.
Dates but Many Industries Suffer Perishability Problems. Information Can Become Outdated and Hotel Rooms Cant Be Sold Once the Clock Ticks Over to a New Day. Products and Services Will Be Vulnerable on Price if They Are Ending Their Useful Life. Brand Image Italy Telegram Number Data Service Levels and Features Are a Lot Less Vulnerable to Price as They Arent Perishable. Dull Established Industries With High Barriers to Entry and High Switching Costs Such as Big Business Software Systems Like Sap Are Likely to Be Profitable Compared to Most Silicon Valley Internet Startups Where the.
Dead Body Count is High. Are These Two Really in the Same Industry It Doesnt Help That We Only Tend to Hear About the Outliers Such as Instagram That Make the Hightech Industry Sound Like a Certified Gold Mine. The Internet Industry Has Significant Structural Problems Affecting Profitability Typically in Terms of the Level of Competition Low Barriers to Entry and Access to Capital. Also Consider the Role of Complements. Complements Are Products Used to Help Provide a Service. For Example Adwords is a Complement to a Ppc Marketing Campaign. Without Google a Ppc Campaign is Significantly.