...Biopure Corporation: Case Write-Up Problem Definition In February 1998 Biopure Corporation faced a difficult decision regarding the launch of its newly developed “blood substitute” products. Biopure had developed “Hemopure”, a blood substitute for humans, and an ancillary product “Oxyglobin” for the veterinary market1. Hemopure was still in the process of gaining Federal Drug Administration (FDA) approval , while Oxyglobin had already been approved and was ready to be launched1. FDA approval was estimated to be two years away2, but this could change as the approval process is inherently complex and uncertain. The main problem Biopure faced was whether to launch Oxyglobin now, or wait until Hemopure was approved and launch both products simultaneously. This was a complex problem as the early launch of Oxyglobin would have both positive and negative repercussions for Biopure. These repercussions needed to be carefully analysed in order to decide what the best course of action is. Another problem was that Biopure had competitors with similar human blood substitute products in the pipeline 3 . Biopure have to consider how to position and price their products in relation to their competitors. An additional problem exists in the pricing of Oxyglobin and Hemopure in order to appeal to their respective markets4. Lastly, Biopure has no current cashflow and therefore needs to be successful with its upcoming IPO in order to raise the requisite cash and solidify its future5. Analysis Human...
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...entrants, the threat of substitutes, the bargaining power of buyers and suppliers, and the rivalry between existing competitors. Using these forces we shall examine the European textile and book publishing industries: Threat of new entrants: many newly industrialized countries develop a textile industry since the skills and technology are relatively easy to acquire. Book publishing relies more on commissioning authors with the skills to write best sellers: it is easier to make a shirt than a book in Hong Kong that will sell in Europe. The threat of new entrants is likely to be lower for book publishing than textiles. Bargaining power of suppliers and buyers: it is difficult to distinguish between two industries on these bases. Suppliers of basic textile commodities (such as wool and cotton) are unlikely to have a great deal of power; authors (unless already proven winners) certainly do not. In both industries large retail outlets dominate sales to consumers. However, where retail price maintenance is practised there may be less pressure on producers to trim prices. Threat of substitutes: the key to understanding differences in profit levels does not lie in this area. It is difficult to imagine clothes not being made from textiles; television, the cinema, video cassettes, and computers are alternatives ways of communicating a story, but the different experience of reading a book makes them distant substitutes at present. Industry competitors: it is in this area that...
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...Porter’s Five Competitive Forces Porter’s Five Forces is a framework for industry analysis and business strategy development, which helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures. The five competitive forces are threat of new entrants, threat of substitute products or services, rivalry among existing competitors, bargaining power of buyers and bargaining power of suppliers. Figure 1: Porter’s Five Forces Threat of new entrants The threat of new entrants of Nike is low as there are high barriers to entry into the industry. It is hard to enter into the market as of a few reasons. The capital required to penetrate successfully into the industry is high, and the new entrants usually don’t have such a huge amount of capital in the beginning. Furthermore, the brand name of Nike is strong and well established. Leader like Nike has made the industry what it is today. Consequently, long-time competitors like Saucony and K-Swiss have been struggling for years just to keep its brands alive. This situation has further hindered the entry of new competitors. Up until 1997, Nike was a market leader with 45% global market share. Nike did not have to worry about new companies taking away much, if any, of its market share. With Nike’s well known brand name, no company stood to make any dent in Nike’s market share. But when Nike was accused of employing Indonesian children under 16 years old to produce their athletic...
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...over rival firms can use this model to better understand the industry context in which the business operates (Baltzan, 2012). Buyer Power Buyer Power is simply the ability that buyers have to affect price of a given item. The framework that affects buyer power can be bargaining leverage, price sensitivity, product differentiation, buyer incentives, buyer volume, substitute products available, buyer information, and brand identification (Teisberg, 2006). The major buyer factors that affect the Hometown Deli are within the marketing area. The deli exists within a small town with few buyers and no large volume of purchases from neighborhood businesses. There are no incentives to patronize the deli or reminders that the business exists. Substitute products are readily available from other potential sandwich shops. The Deli does not have a product that distinguishes it from its competitors. Hometown deli products are not important to the town’s buyers and they can do without making any purchases. To improve customer knowledge and provide incentives to return; I would prepare a grand re-opening and marketing kick- off campaign, with all the bell and whistles. The Hometown Deli needs to update and make its place in the market known; within the entire town before it’s too late. Supplier Power Supplier Power entails your supply chain consisting of all parties involved in obtaining raw materials or a product either directly or indirectly. Factors that affect your supplier...
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...House of Kebab Contents 1 Introduction 2 1.1 Company Summary 2 1.2 Company Ownership 3 2 Five Forces Model and Analysis 4 2.1 Barriers To Entry 5 2.2 Supplier Power 8 2.3 Buyer Power 10 2.4 Threat of Substitutes 11 2.4.1 The Threat of Substitutes are High 11 2.5 Rivalry among Existing Firms 12 3 Conclusion 17 INTRODUCTION House of Kebab is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. House of Kebab will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. House of Kebab is the answer to an increasing demand for kebab and shawarma fast food. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in Kuala Lumpur, preferably in one of prominent housing estate. Later, our effort will be a further development of more retail outlets in the surrounding area. House of Kebab will entice youngsters to bring their friends and family with our innovative environment and our main focus will be serving high-quality food at a great value. COMPANY SUMMARY House of kebab sells specially made shawarma sandwich-like wrap usually composed of shaved lamb, goat, chicken, turkey, beef, or a mixture of meats and kebab which consist of thin slices cut from a cylindrical block of minced...
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...Five-Forces Barriers to Entry - Economies of scale - Product differentiation - Brand identification - Switching cost - Access to distribution channels - Capital requirements - Access to latest technology - Experience & learning effects Government Action - Industry protection - Industry regulation - Consistency of policies - Capital movements among countries - Custom duties - Foreign exchange - Foreign ownership - Assistance provided to competitors New Entrants Threat of new entrants Rivalry Among Competitors - Concentration & balance among competitors - Industry growth - Fixed (or storage) cost - Product differentiation - Intermittent capacity increasing - Switching costs - Corporate strategic stakes Industry Competitors Intensity of Rivalry Barriers to Exit - Asset specialization - One-time cost of exit - Strategic interrelationships with other businesses - Emotional barriers - Government & social restrictions Suppliers Bargaining Power of Suppliers Power of Suppliers - Number of important suppliers - Availability of substitutes for the supplier's products - Differentiation or switching cost of supplier's products - Supplier's threat of forward integration - Industry threat of backward integration - Supplier's contribution to quality or service of the industry products - Total industry cost contributed by suppliers -...
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...generation is continually developing new ways in technology to watch movies as well as purchase them in a competitive consumer environment. In the past decade, Netflix has revolutionized the art of purchasing for in-home movie viewing providing an online phenomenon for the movie rental business. Netflix company strategy and business model has generated a great amount of success with their huge selection of movies, fast delivery, and excessive marketing campaign. Nevertheless, there are some issues underlying their current success that need to be dealt with for future forecasting. Current Issues/Problems Netflix has seemed to master the DVD rental segment of the movie industry. With their extensive selection based product, fast delivery, and wide subscription plan, there is no limit to their success. However, some questions arise with the subject of product differentiation. What happens when technology advances over time and the product changes? If Netflix concentrates too much on their product focus and ignores the future, then a substitute product will take over only in a matter of time. In our current business environment, product improvements are essential and changing rapidly. If Netflix does not plan out the obsolescence of DVD’s then there is no future. The recent introduction of Blu-ray technology has offered a huge advancement in the production of DVDs. Blu-Ray discs offer more than five times the storage capacity than traditional DVDs, and gives the viewer a full HD...
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...LouAnn Hollihan American Intercontinental University Unit 1 Individual Project MKT255 – Fundamentals of Marketing 2/13/2010 Abstract Any organization or company always works in an environment and the decisions of the company are influenced by both internal and external factors. According to many researchers, external factors influence an organization more than the internal factors. In fact, internal factors are always shaped by the external factors, on which an organization has less or no control. The external factors that can influence an organization can be economic, technological, social, political or legal. For any marketing manager, these external factors are very important and needs critical analyses so that companies can have a loyal customer base. Marketing Environment Introduction The objective of this assignment is to find and analyze the importance of external marketing factors that have affect on marketing managers and their decisions. These factors have direct relation with marketing and critical analysis of these factors is the key to success in marketing. Following are the three different external factors identified; Market Force 1: Social and Market factors A company cannot operate without a market. The organizations today perform marketing research so that they can understand the social aspects. These social aspects are divided into difference categories and are used for product development and finally for offering it. This way products and...
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...retailers in the United States and dominates the discount retailing business. It has historically outperformed and continues to outperform its competitors. To improve slowing growth, Walmart must focus on retaining its strengths in I.T implementation, distribution planning and vendor and store management but implement these skills in growing internationally and including organic products in its merchandise. Analysis Walmart succeeded in the US by selling branded products at a lower cost that other options available to customers. Walmart’s centralized purchasing system allowed it to have better economies of scale than its competition. It is also never too dependent on a single vendor so it maintained its bargaining power. Its logistics set up was also much more efficient with about 80% of all merchandise going through its own distribution system .Also its electronic hook ups to its vendors allowed both Walmart and the vendors to reduce inventory costs and transfer the savings to its customers. Walmart also grew initially by building stores in small rural towns and saturating the market. These locations resulted in lower operating expenses but the towns were not big enough for another store, this effectively created a barrier for competitors to enter these saturated markets. Walmart’s financial performance favors comparably compared to its competitors and by 1993 had achieved an ROE of 33% annually since inception. In the same time Walmart had achieved 25% y.o.y sales growth as well...
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...the development opportunities of fashion retailing. This report will main focus will be Asos.com and its position as a E-commerce retailing store. I will briefly describe how ASOS.com has developed a competitive edge in fashion retailing through the value chain concept. Further, a reflection on the main opportunities and threats likely to affect the business in the next five years. This report will analyse the Value chain Explain how ASOS.com have developed a competitive edge in fashion retailing. Apply the concept of the ‘Value Chain’ to illustrate your answer. Competitive Edge has been defined as: "having a clear advantage over the competition in terms of one or more elements of the marketing mix that is valued...
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... | |Pak ‘n’ save as a company focuses on “cut-prices” and mainly competes on Cost Leadership. They have a large variety of products available in wide | |range of brands and prices. It has also been rated as the cheapest supermarkets in surveys in most parts of New Zealand including Auckland. Their | |unique marketing strategies give them an edge over the other competitors. Going forward we will give a detailed insight on the core competencies of | |the company that helps them to stay ahead from the competitors and also the areas to be improved using Michael Porter’s Five Forces Model | |Pak ‘n’ save as a company focuses on “cut-prices” and mainly competes on Cost Leadership. They have a large variety of products available in wide | |range of brands and prices. It has also been rated as the cheapest supermarkets in surveys in most parts of New Zealand including Auckland. Their | |unique marketing strategies give them an edge over the other competitors. Going forward we will give a detailed insight on the core competencies of | |the company that helps them to stay ahead from the competitors and also the areas to be improved using Michael Porter’s Five Forces Model. | |Prepared by: | |Ashish Sharma – 20131295 ...
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...Company a family possessed business holding headquartered at Ahmadabad which originally runs a biri manufacturing unit and a marketing enterprise from 2 decades. NIRDOSH is a unique non tobacco smoking stick which is used as substitute for normal cigarette but having no harmful characteristics of smoking rather providing additional health benefits. The production was carried out with 30-40 labour workforces manually by hands. NIRDOSH got health certification from medical bodies claiming numerous health benefits. The brand tag line was to curb the habit of smoking by simply smoking a different cigarette. NIRDOSH was sold in one main outlet in Ahmadabad and through VPP. Free samples of product were distributed and door to door selling was done to make awareness about NIRDOSH. The annual average sales were 1.4 lakhs per annum. A packet consisting 10 sticks was Rs2.5 subsequently increased to Rs5 per packet. The major constraints were the financial sources for the company which were tried to generate by contacting friends, government and local leaders. The attempts were made to get orders from outside countries to boost the sales of NIRDOSH. SITUATION ANALYSIS The business scenario for NIRDOSH can be analyzed by using the SWOT analysis tool in this case. Strength – It is an innovative product with proven health benefits, so at present there is no competitor in the market. Having medical benefits and generating awareness about anti smoking. The educational part associated with NIRDOSH...
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...1. What are the strategically relevant factors in the macro-environment (PESTEL analysis)? Strategically relevant factors in the macro-environment consist of: social, technological and legal forces in the case of Lululemon Athletica, Inc. Social Factors: This includes that of lifestyle, and the want and need of living a healthy lifestyle. Evidence in the case points to people over the age of 60 who are looking to lead a healthier life and to live longer. This becomes a demand in the market, leaving a space for companies to fill in the supply. There was also an increase in the purchase of athletic wear not only for fitness activities but to simply give a perception of a healthy lifestyle, which in turn increased demand for these products. Technological Factors: Technology plays a key role in the industry and thus drives the creation of new fabrics that lead to a better design for athletic attire. Trademark fabrics such as luon, luxtreme and silverescent all have different specifications that would address the different needs of consumers in the market. Advances in market intelligence allow companies to track trends in the market and consumer behaviours. Changes in shopping habits also become relevant, not only with trends but also with the growth of e-commerce and the convenience of purchasing anything online in the matter of seconds. The desire to be able to shop online has become a growing industry, leaving consumers with the satisfaction to shop at any time and place. Lululemon...
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...island, the Visayan Islands. Potential Entrants * Cosmos bottling company * Rubicon Drinks Ltd * Boost Drinks Potential Entrants * Cosmos bottling company * Rubicon Drinks Ltd * Boost Drinks Firstly I will look at the drinks industry for the first step; Industry analysis. So I will be using the Porter’s 5 forces model; Buyers * Local stores * Pongko Pongko Market Buyers * Local stores * Pongko Pongko Market Suppliers Suppliers Competitive Rivalry Competitive Rivalry Threat of Entry – High Bargaining Bargaining Power - Low Power - Low Substitutes * Juice * Tea/coffee * Iced Tea * Health drinks Substitutes * Juice * Tea/coffee * Iced Tea * Health drinks Threat of substitutes – High The potential entrants could be bottling companies that decide to make their own drinks, as it has been seen that producing drinks is not very costly however bottling and distribution is. For example there is a bottling company in the Philippines called; Cosmos Bottling Corporation...
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...competitive or near environment ‐ industry, market & strategic group – Macro‐environmental analysis • broad business or far environment STEP analysis • External analysis identifies opportunities and threats through continuous learning about the global and local business environments Industries and markets • An industry consists of a group of businesses producing / supplying similar products (goods or services) using similar: – – – – resources, skills, competences, technology processes and value adding activities materials supplier channels and distribution channels Markets • A market is defined in terms of shared: – – – – – products or services customers customer needs distribution channels Competitors Why the distinction between industry and market? • Businesses develop core competences within an industry which are then deployed in markets to satisfy customer demands – An industry can serve more than one market – A market can be served by more than one industry Analysis of the competitive environment • This involves assessing: – the extent of globalisation in the industry and market ‐ Yip’s globalisation driver framework – the nature and extent of competition ‐ Porter’s five forces or the resource‐based framework – strategic groups The network of business environments national macro business environment national industry national market The firm global industry global market global macro business environment ...
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