The Effect of Market Orientation on Business Performance - situational variables that may affect profitability
5 important questions on The Effect of Market Orientation on Business Performance - situational variables that may affect profitability
What are the 8 situational variables that may affect a business's profitability? And what is their correlation? Without taking Market Orientation into account.
- Buyer power; negative relationship;
- Supplier power; negative relationship;
- Seller concentration; positive relationship;
- Ease of entry of new competitors; negative relationship;
- Rate of market growth; positive relationship;
- Rate of technological change; negative relationship;
- Size of business in relation to largest competitor; positive relationship;
- Average total operating cost of business in relation to largest competitor; positive relationship.
What is supplier power?
What is seller concentration?
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What is 'ease of entry' of new competitors in market?
Why is a negative relationship with 'rate of technological changes' hypothesised?
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