In-class discussion questions – Week 2 (Sep 12)

Published September 6, 2016 | By Min-Seok Pang, Ph.D.

We will discuss the following questions in-class on Monday, September 12.

What does it mean by a bargaining power of buyers? When would buyers have a strong bargaining power?
Any example of switching costs for buyers?
Suppose you’ve got $300 millions from winning a lottery. You want to start a new airline company. What does it takes for you to make the first flight take off?
What would be substitutes for a travel by flight? Wha would be substitutes for grocery stores?
According to the Otis case, which business is more profitable? Elevator manufacturing or service?
In the Otis case, “The service market attracted many participants because of its steady demand, low barriers of entry, and high profitability.” (p. 3) Doesn’t it mean that the service market is not profitable for Otis?
How often do you change your doctor? Why?
Will Otis customers (building owners or managers) change an elevator service company often? Why or why not?
Can you think of an example of bundle around us? Why do firms sell a bundle?
Why would bundling up an elevator (product) and maintenance services together (i.e. total solutions) be more profitable than selling an elevator and services individually?
How were things going before OTISLINE? How now are things going after OTISLINE?
What are the improvements in customer service from OTISLINE?