Fracking Advantages

A modern day example where the bargaining power of customers is low and where the level of competition is less was previously seen prior to the fracking boom. Previously, the nations' energy demands were (and mostly still are) at the mercy of OPEC (Organization of the Petroleum Exporting Countries). OPEC has mostly provided most of the oil globally and has mostly colluded to increase prices on energy reliant nations. Fracking created a small yet significant competitor to OPEC, thereby forcing OPEC now to dramatically drop prices below costs to force many of these fracking companies either out of business, or severely reducing their scale.
Now it what is good for the goose is good for the gander right? It is not only the consumer that …show more content…
Where a standard retailer may have had three or four suppliers at their disposal for raw materials, finished goods or services. Many more suppliers are realizing that through the internet they can cut into the larger suppliers margins by offering their goods and services for less. For example, there's a show on cable television called "Shipping Wars" where the drivers log on online and bid to provide the lowest cost to the retailer to pick-up and deliver products to the desired location. There have been times where a driver sets their price below the actual costs of delivering the product. Now this isn't a typical business practice, but these drivers had mostly done this in order to get their operations off the ground and help build strong initial ratings. Again, the show is clearly atypical, but it is certainly an example where the bargaining power of suppliers is low. Also, if the bargaining power of suppliers is low, the retailer would not have to shift as …show more content…
Customers are no longer limited to television or radio media for their source of advertisements. In fact, a growing number of consumers are moving away from the television altogether and are viewing and streaming more of their media content online. Companies are now having to find new ways of reaching customers, particularly those who are of younger demographics. This has made many industries' competition far more intense, because savvier companies reach these younger consumers right where they are. This is particularly more challenging when the barriers to exit are high. When barriers to exit are high retailers are more imposed to stay and fight for customers rather than selling off their assets and leaving the market. The amount of capital that was spent to enter and operate within the market may provide too much of a disincentive to escape. Thereby forcing businesses to stay and hope that their research and development staff creates something that will keep them viable for a little longer. This example would likely be seen in Blackberry devices. Blackberry had mostly been the go to device for companies to provide to their staff. Blackberry had set themselves apart as being the device best positioned to supply the