Question: Through research and development, a cable company has found a way to use its existing network lines to serve customers with a new product offering
Through research and development, a cable company has found a way to use its existing network lines to serve customers with a new product offering home security systems. The company is offering the service for a lower monthly fee than most security companies. However, the sales force didn't see a lot of interest among its customers who had an existing security system from a competitor until they ran a promotion for reduced prices on equipment and free installation. Which of the competitive forces is at play?
Bargaining power of suppliers
Customer switching costs
Cost conditions
Complementors
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