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April 7, 2018 at 2:43 pm
Can you please explain more on switching costs (the definition)? Especially why the switching costs for customers bargaining power is low and for suppliers – high?
Ken Garrett says
April 7, 2018 at 3:48 pm
It is simply the bother and expense of switching suppliers.
If there are high switching costs, then the buyer will be reluctant to switch. The supplier is in a relatively strong position.
It used to be the case that switching mobile phone networks had a high switching cost because you would have to change your phone number. Networks knew that customers would be reluctant to do that. Now (in the UK, at least) users are entitled to keep their numbers when changing networks so users are more likely to decide to switch if there are small price differences.
May 2, 2016 at 12:21 pm
The explanation on industry convergence is not so clear. What is the difference between Market-led and supplier-led. Can someone please help?
May 2, 2016 at 4:05 pm
Supplier led = when suppliers perceive linkages between separate sectors. For example, mobile phone operators see linkages between phone calls, data transmissoin, cloud services and begin to offer all.
Market-led (or customer-led) is where consumers start to substitute one product with another. For example, conventional TV stations, iPlayer (catch-up over the internet) and Netflix.
As far as I can see the distinction isn’t very important: both sides of the transaction have to be willing to trade.
March 2, 2016 at 5:22 pm
I need some one to assist on how well to present the points in the scenario while answering the qn.
March 2, 2016 at 7:03 pm
Have a look at soem of these:
February 15, 2016 at 10:17 am
Could you please add exam question dates for each of topics to practice them within the question, lets say ‘flavor’ of the exam.
March 2, 2016 at 7:02 pm
Download our exam question analysis form here:
December 7, 2015 at 7:43 am
It’s good lecture.
Is the lecture enough to pass?
January 17, 2016 at 5:06 pm
Yes, if you build upon it sufficiently.
January 17, 2016 at 7:08 pm
The key is applying it to scenarios – not describing the process.
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