Place the following eight points onto the five forces model: 1. Start up costs a
ID: 406094 • Letter: P
Question
Place the following eight points onto the five forces model:
1. Start up costs are very low.
2. Students have access to books, videos, and paper-based distance learning packs.
3. The more innovative learning sites give lesson for free just for the love of it.
4. More people with access to the web every second.
5. Companies, governments, and self funding students invest huge amounts in their education.
6. There are very few high quality web sites available.
7. Traditional colleges and universities are adapting their products for on-line learning.
8. Government legislation in the US and Europe encourages on-line learning.
please do this for me ( in principles of marketing)
Explanation / Answer
1. Start up costs are very low. : Answer: Threat of Entry - Barriers to Entry. Since Start-up costs are low it would be easy for competition to enter this market.
2. Students have access to books, videos, and paper-based distance learning packs.Answer: Competitive Rivalry and Threat of Substitutes. This would determine the various different types of competitors for this service, what do students pursue as quality differences, what are the other percieved differences, switching costs and student loyalty towards these various options.
3. The more innovative learning sites give lesson for free just for the love of it. Answer : Bargaining power of suppliers. Uniquness of service as they offer innovative sites free of cost and what is the cost of switching over to other site.
4. More people with access to the web every second : Answer : bargaining power of Buyers Since more and more buyers have access to the web.
5. Companies, governments, and self funding students invest huge amounts in their education. Answer: Answer : bargaining power of Buyers.
6. There are very few high quality web sites available. Answer : bargaining power of suppliers as this determines the no. of suppliers, quality and uniqueness of service offered and cost of switching over.
7. Traditional colleges and universities are adapting their products for on-line learning. Answer: Threat of substitutes. Reason being this has a direct impact on the substitute performance and cost of change.
8. Government legislation in the US and Europe encourages on-line learning. Answer: Threat of New Entry . Because it encourages specialist knowledge and cost and time of entry for new entrants.