Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-29-2011, 06:17 PM
 
90 posts, read 115,487 times
Reputation: 96

Advertisements

Quote:
Originally Posted by ambient View Post
Statements about what profit margin is "fair" are meaningless in a free market without consideration of competitors' pricing behavior and aggregate industry supply and demand. Whatever is "fair" is dictated by what you can get people to pay given their array of different options in the marketplace. Competitors' pricing behavior will vary by industry due to several key factors:

(1) competitive rivalry within the industry,
(2) threats of new entrants (or put conversely, barriers to entry),
(3) threats of substitute products,
(4) bargaining power of suppliers, and
(5) bargaining power of buyers.

The various combinations of these factors will result in significantly different margins and ROI across industries. Put differently, there are structural market reasons why pharmaceuticals manufacturers tend to have massive margins and the distributors of those drugs operate on razor thin ones.
lol... I take it somebody is familiar with Michael Porter.
Reply With Quote Quick reply to this message

 
Old 06-02-2011, 11:41 PM
 
262 posts, read 650,063 times
Reputation: 217
You all are ridiculously smart! Thanks for the info. I would consider all the advice that was given to me and use it to my advantage.
Reply With Quote Quick reply to this message
Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top