... 1) Emerging market exists for ED pharmacies 2) First mover’s product is not superior enough, which provides chance for followers to defeat the first mover. PIC Guideline This should be a dual-driven new product development case. 1) Market driven, a great amount of male is suffering ED problems now. These problems need to be solved immediately, which means a great market there. 2) Technique driven, new physical technique can provide effective and safe oral treatment for ED, meanwhile minor side effects from immature pharmacies can be reduced by the new technology. New Product Category Levitra is a new-to-firm product 1) It is completely new for the company GlaxoSmithKline and Bayer 2) There is a first mover in the same market already when GlaxoSmithKline-Bayer began to launch Levitra. So, it is not so new-to-world product. 3) The concept sequence for this product should be N-T-F. There is market inquisition first, then GlaxoSmithKline develop the relative new techniques, and finally, new products are manufactured and introduced to market. Strategy selection This is a Market/Technique dual-strategy driven product Objectives 1) ED market is very big, profits and revenue should be considered by every company into this market 2) To achieve this target, company should get a certain position in the market, in other words, they should get a big market share. 3) But, the first mover has already been there. It is quite possible that customers...
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...should be able to make valid choices concerning the release time of that product. This paper addresses the advantages and disadvantages of first move or late move into a market. It also explains how and why companies have succeeded and failed in both theories. Part One: First Mover Theory First Mover Advantages (FMA) FMAs have a unique opportunity to create barriers to competition such as limited resources and patents. They may have a sustainable advantage in technology that is Intellectual Property (IP), R&D, Patents, and resources. They have a monopoly of sorts, however short term that it may be (Lieberman & Montgomery, 1988). Rapid expansion of market share with a new product is extremely likely. Introducing new products involves in-depth market research and a large investment of time and other resources. The results of the market penetration by a first mover can be difficult to overcome for subsequent entries. Setting the benchmark is an advantage that first movers can exploit. If they introduce a product that becomes a high demand item, establish the brand name and provide good service, then they set the bar really high for late entries. Tendency to make a high impact, lasting impression on customers, strong brand recognition, and often, a high consumer cost of switching to late entries (Innovation Zin, 2006). First Mover Disadvantages (FMD) Consumer education is often expensive. When a new product is introduced there is a unique challenge of educating the...
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...Gillette Indonesia case study Objective: Whether the sales blades can be in increased to 25-30 % ( mean – 27.5 %) or not. Analysis of data based on the data provided in the case study. People: North Atlantic group – NA and Western Europe Robert King - International executive VP Effio – Business Director Ian Jackson – Group VP , sees 12 Asia Pacific Countries. Chester Allan – Country Manager – Gillette Indonesia Process Country manager prepares the plan. Business director reviews the plan. As per business director Effo, sales can be increased to 25-30 %. Also increase the advertisement by 12 % of sales in 1995. Gillette Global Presence: It is operating in 200 countries and the products are manufacture in 24 countries with 50 facilities available for production. Its 1995 sales of $6.8 billion , of which blades and razors accounted for $2.6 billion i.e. 40 %. Asia Pacific region sales were $600 million. Gillette Presence in Indonesia: 45 % market share by volume. Market share of disposable and sensors is 90% Sales for 1993, 1995 are 28% , 48% respectively Sales are estimated as 50% in 1996 . Demand for shaving is factored by below items: Average shaving incidence is 5.5 per month in Indonesia Bear doesn’t grow as fast as in Latino or European countries due tp environmental and physiological conditions Income levels of the population Religious practices which affect the grooming habit Increase advertisements Increase availability of distributors ...
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...UCLA | ECONOMICS 106T | FALL 2012 TA: SIWEI KWOK | PROFESSOR BOARD STEVE WU FRANK LEE JEREMY REYNARD Airbnb For all the lone wanderers or people just searching for a “home away from home,” Airbnb has created the perfect solution for renters and providers worldwide. Since its inception in 2008, Airbnb started an innovative community marketplace for people to list, discover, and book a wide variety of accommodations around the world. Airbnb has pioneered a new industry of “collaborative consumption” and peer-to-peer accommodation rentals, which leaves room for the company’s potential growth and worldwide adoption. Airbnb has experienced immense success with over 1 million hosts and travelers, over 10 million nights booked, and over 26,000 cities within 192 countries.1 Despite the substantial growth and potential within this new industry, Airbnb faces several strategic issues moving forward. Airbnb lacks a sustainable competitive advantage, faces a heavy influx of new competitors, and also faces multiple legal and trust issues in the market. Airbnb must determine its direction moving forward or risk losing its competitive position in this emerging industry. Collaborative Consumption Movement Collaborative consumption is a term used to describe the “rapid explosion in traditional methods of sharing, bartering, lending, trading, renting, and swapping.”2 Also known as a “peerto-peer online marketplace,” this trend has seen immense growth in recent years. This exponential...
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...Natureview case Natureview is in front of a key decision. Let’s make a pro’s/con’s analysis of the three proposed options: Option 1: Introducing 8oz. product line in two sjpermarket regions: PRO - taking advantage of a trend - first-mover advantage - strong revenue potential - growing market for organic products esteemed 20% growth - new type of customer CON - explotion of costs, distribution, administrative, marketing - slotting expenses - insufficient ressources - time pressure - brand equity damaged Option 2: expand 32 oz. nationwide PRO - higher gross profit margin - high market share - lower marketing investment as being niche product - nationwide coverage - possible first step for further expanding actions in the future CON - high slotting expenses - large investment in human ressources (sales forcé) - investment in distribution logistic - investment in manufacturing increase - possible conflicto with cannel partners Option 3: introducing children’s multipack in natural foods cannel PRO - high gross profitability - low investment in additional marketing and sales - enforce current distribution lines - excellent positioning for the new product - higher growing rates of this cannel - no additional functional ressources needed - reinforce brand equity CON - insufficient potential revenues - dependence on one channel - “missing the right moment” - increasing competition Recommendations: I would...
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...INTRODUCTION TomTom (TOM2) is one of the largest producers of navigation systems in the world, comprised of both standalone devices and applications. The company leads the navigation systems market in Europe and is second in the US, but as these markets become saturated TOM2’s sales growth rate and profits decrease. Contributing to the decline, Google and Nokia offer free navigation features on GPS-enabled smartphones. Despite competition, TOM2 will increase in profitability due to innovation and their ability to take advantage of external opportunities. SWOT ANALYSIS Internal Strengths TOM2 has brand recognition. According to the company, three out of four people are aware of TomTom products. As TOM2 diversifies into new markets there lies a strength in brand loyalty, as consumers will prefer the products of this established company compared to lesser known competitors, allowing TOM2 to charge premium prices for their brand name. TOM2’s belief in radical innovation is one of their greatest strengths. TOM2 continually develops better routing and traffic information. TOM2 has the world’s largest historical data base of IQ routes and possesses unique real time traffic information updates which empowers drivers to reach their destination better informed. As a result, TOM2 has increased the utility customers gain from using their value-added services. TOM2 can raise prices to reflect this utility or hold prices to induce sales thereby expanding sales volume. Internal Weaknesses ...
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...acquiring Foam Creations, they actively opened more production stores in different parts of the world and currently have a capacity which is much larger than the demand expected. This helps them fulfill the orders which are generated very fast. Also, because of this, they have the capability to manage their supply more efficiently depending on the demand of the market. For example, if a particular type of product if very well received, they can ramp up the production of that particular product and supply it within six weeks. Thus, minimizing stockouts and over production wastes. b. Globalized Market Demand and First Mover Advantage: Immediately after Snyder took over as the CEO of Crocs, they aggresively expanded themselves into new territories and were a significant market player in the Asian and European markets. This has enabled them to get the advantage of the first mover and establish crucial relationships with the retailers and the consumers in those markets. This has substantially decreased the threat of new entrants and is a core strategic asset for Crocs. c. Raw Materials Used, Croslite: The raw materials which are used by Crocs in the manufacture of the shoes is croslite. This is cheaper than the traditional material used in making footwear which is leather. This also is odor free and is lighter and does not get spoilt by it is unsold for an year or so. This ability of Crocs to make a superior product from a cheaper material itself is one of the most important core competency...
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...Does Apollo Hospital Madras provide superior value to its customers, shareholders, and employees through a well designed service system – in other words is it a breakthrough service organization? Yes Apollo Madras provide superior value to its customers, share holders and employees.Apollo has well designed service system and it is a breakthrough organization. Apollo’s greatest strength is the first mover advantage. They were among the pioneers in setting up quality private hospitals in India. Since they were able to provide world class medical service at affordable rates, this became a value for customers. Government also helped them eventually by getting rid of many financial and regulatory obstacles. Liberalization of private sector was a boon. Apollo were good pay masters as far India was concerned and this enabled them to attract talent. Doctors who wanted to come back to their country of origin were more than happy to join Apollo. The hospital imported latest equipments and had a good success rate. By using sound marketing, they were able to build a brand name very quickly. The successful surgery of Vice-President of India was a major break through for them in brand building. India’s growing middle class were the target segment for Apollo Hospitals. The patients were ready to pay for quality treatment and this segment was growing at more than 8%. Also they had little or no competition in Chennai especially from the poorly managed Government hospitals. Apollo was started...
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...ETrust Trust is defined as the psychological status of willingness to depend on another person or organization. It is the single most important factor for confidence in secure information for the consumer; without trust, a business cannot profit from the consumer, and the consumer will be dissatisfied. ETrust defines what ordinary citizens both fear and desire: privacy and security. ETrust understands information needs of both consumers and businesses in key areas where consumers perceive the most risk in online transactions, which is the safety of their information. This makes the concept a valid and important one when it comes to the safety and security of all in every technological situation in which people share information. Computers have become very useful tools for communications, banking, shopping, entertainment, staying in touch with friends and family, and learning about any number of interesting topics. However, the internet has a dark side, and most people are completely unaware of the pitfalls which come with this relatively new and fascinating online world. Among the malicious intentions of those who would compromise a computer are those to gain access to personal data for identity theft, to use the computer to send spam or be used to attack other computers on the network, to use the computer to “hack” other computers as the act of juvenile mischief to wreak havoc. To help solve this security and privacy problem, online businesses have started to use information...
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...Abstract I inherited The Broadway Café coffee shop from my grandfather which is located in downtown Atlanta. It was first opened in 1952. Coffee shop specialized in different coffees, teas, homemade soups, sandwiches, salads and full service bakery. For many years it was a hotspot, but for last five years business is going down. Now it needs new and improved methods to be back in business market. My grandfather never used computer and everything was manual including ordering and employee payroll. He had terrific memory and he knew his all customers. All recipes for homemade soups and baked goods were in his memory. Business’s only marketing was word-of-mouth. To bring café into 21 century we needs new technology like computers for sale, customer database, website for online presence, providing wireless hotspot, customer relationship management for marketing and sale strategies to gain a competitive advantage. We need to install cash register, computer server with wireless access to meet customers’ expectations. Established in 1952, the Broadway Café starts out with a competitive advantage from an established menu and loyal customer base; however, in a business landscape where new competitors are arriving on the scene rapidly, the café also has much to benefit from upgrading its business practices with information systems. Knowledge management, customer relationship management, and business intelligence systems will help preserve the knowledge of older employees for future...
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...Paths to success There are different paths and many theories that are helpful to get success. This paper discusses different paths of success such as 10,000 hour rule, Tiger mom and Tim Ferriss. It also discusses the advantages and disadvantages of each success method. 10,000 Hour Rule: According to this rule, brain takes 10,000 hours to assimilate all that it needs to achieve true mastery. In views of Heshmat, (2011), the 10,000 hours rule translated into practicing 3 hours a day for 10 years, which is indeed a common training span for young people in sports. This rule suggested that success is the result of accumulative advantages. It is a function of persistence and willingness to work hard. It is because it is difficult to carry out any long-range plan and achievement of any difficult goal, unless people can make themselves persist at it. Advantage: The main advantage of 10,000 hour rule is that it leads to the perfection of people. It is because after spending 10,000 hours on a particular task, individuals build necessary skills and competencies that are necessary to do the job in a perfect way (Bell, 2010). Disadvantage: The main disadvantage of this theory is that it takes a long-term view of getting success. Concurrently, this rule also not describes the performance of a person, who spends less than 10,000 hours to a particular job (Martin, 2011). It also limits the growth of an individual, as he/she focus on a particular job for 10,000 hours...
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...product into the refrigerated foods market, and if it should have additional toppings sold separately or not. Objectives: Sustain the first-mover advantage Extend their product line Increase market share Alternatives: Maintain the status launch the Pizza Kit with toppings sold separately launch the Pizza Kit with no additional toppings sold separately Consequences of Alternatives: Recently, the company’s major competitor in the global markets ,Kraft is expected to launch refrigerated pizza in about six months .NRFC want to replicate the success of its earlier product to pizza market, NRFC has to launch its product well before Kraft to enjoy the first mover advantage over the competitor. The first option - Maintain the dominant status in pasta market, not entering the pizza market. The entry of pizza into the refrigerated food category was new as people never tried it. Because the Pizza market was dominated by restaurants where the people either ate it or carried for eating it at home. Therefore it will be more risky and costly for Nestle to enter the pizza market. Nestle could damage its current Contadina Pasta & Sauce product line if the Pizza Kit product is not received well in the marketplace due to the brand penetration. The second option- launch the Pizza Kit with toppings sold separately. NRFC gained the first-mover advantage when they enter the pasta market, and then use the advantage to sustain the threatened by Di Giorno. NRFC’S brand...
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...Merck worried that this drug could cannibalize profits from the animal version of the drug through the creation of possible black markets in the affected countries. Percentage of research budget that Merck should invest in drugs that will produce a substandard return on investment As a company that produces drugs to cure diseases in both humans and animals, Merck operates in a complex dynamic that requires it to take decisions that may not lead to profitability. Further, its corporate philosophy always revolved around the fact that the company’s first priority was the safety of people and only then did profits follow. I, therefore, believe that Merck should invest a large amount ( ~80%) of its research budget even on drugs that will produce a substandard ROI, provided the drugs promise to fully cure diseases without harmful side effects and they are the first in the market to do so. This could help them build a strong brand equity, goodwill and reputation in the long run thereby creating a foundation for profitability in future. For instance, I believe that...
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...Entravision slowly but surely fell behind in the ever more digitalized broadcasting market. Having found a market niche in the Hispanic market segment, Entravision set out to create a new Data analytics department called Luminar to utilize and profit from information gathered about the Hispanic core customership. The first segment argues whether and how Luminar is able to create value by implementing Big Data analysis. Consequently, this paper tries to clarify whether the obtained advantage can indeed be of a sustainable nature and thus allow for an independent and successful department within the Entravision construct. Furthermore, the data gathering capabilities are being analyzed to inquire into whether there is viable competitive power to benefit from the advantages mentioned priorly. Finally, having established the background for the undertaking, the paper will shed a light on how exactly the department would fit into the organizational structure and what benefits and pitfalls the embedment or independent venturing of Luminar would have. 2. Value Creation In order to asses the added value of Luminar to the mother enterprise Entravision this paper will provide a first outlook of the Latino segment in the US and then conclude with the Big Data analytics aspect, which comprises additional organizational and strategic issues. Latinos are the largest and fastest-growing minority group in the United States. The Latino population is forecasted to expand to 85 million by 2030, which...
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...conclusions about competitive position and options for future growth? To answer: 4. Why was Cucina Fresca pasta successful? First of all, because it’s healthy. Also it’s easy to cook, it’s fast and tasty (in comparison with pasta of another companies). Package has size for one time meal and right proportions of sauce and pasta. Each package has simple instructions for cooking process. For people who care about health and don’t have time to cook – it’s the best option. And on the market only two companies which provide this product. 5. How would you compare the pizza opportunity to that for pasta? I think that here can be two options: huge fail or more or less success. When company launched fresh pasta it was something completely new and thus huge success and large consumption. But pizza is completely different. It’s can’t be healthy food, so people can be interested in it and in case of good taste it can be successful, but with more possibilities it’s not going to be as good as it was with pasta, because according to exhibit 9 the main problem is expensive price even in comparison with take out and restaurants (45 % and 23 % respectively) and to have revenue and cover costs for new equipment price can’t be much more cheaper and it’s becoming a problem. Also rival company is going to launch the same product soon and trying to be the first mover now can end with a disaster....
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