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Bananas Case

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Describe shortly the most important strategic choices and activities based on which Bananas competes in the field marketing industry
Bananas focuses on becoming a highly efficient field marketing company, using softwares like proprietary software platform to increase both the quality and reliability of execution. It also cuts costs (variable costs are lower by 15-20%) and increases profit margin (clients were willing to pay about 5-10% more for Bananas’ services). Finally, Bananas provides perfectly executed solutions to clients, “no nonsense approach”.
Threat to Profits from Entry
Entry in general requires little capital and know-how. However, relationships play an important part in both getting contracts and signing better deals on purchased materials and services (with savings upto 20%). Moreover, the market is more or less saturated with lots of small local companies. To sum up, it seems like the entry barrier is high and therefore it works for the profitability of the market
Threats to profits from supplier power
Little information is given on supplier. According to the little information given, we learn that most suppliers charge more or less the same price (e.g. all companies pay promo people approximately the same) and that large agencies can bargain down significantly. Threats to profits from supplier power seem low.
Threats to profits from Substitutes
Substitutes of field marketing include traditional advertising and internet advertising. Neither form of advertising involved personal contacts between potential users and representatives of the brand which means that field marketing has its own competitive edge. In other words, threat to profits from substitutes is pretty low.
Threats to profits from Buyer power
The main buyers of the products include companies such as multinationals (direct) or through advertising agencies (indirect). The main

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