Porter’s Five Forces, we have concluded that the industry is not very attractive. Suppliers and buyers both wield power over MC manufacturers such as Crown Cork & Seal (“Crown”) and rivalry among existing competitors is intense. The industry has high barriers to entry and a fairly low threat of substitutes; however, these criteria do not outweigh the impacts of the other forces. As such, we believe the MC industry is not very attractive. The buyers in the metal container industry wield a great deal of
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Threat of Entry The threat of Entry of the performing arts industry in the United States is low. The industry has high barriers to entry. Companies have economies of scale that it requires a large amount of capital to buy the equipment. Existing companies have cost advantages that they have higher reputation in the industry. People tend to choose a high quality performance since the tickets are expensive. On the other hand, high quality performers and performing groups will choose famous performing
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Industry Structure: Fragmented Product Differentiation: Generic Technological Change: Slow (Long Product Life Cycle) Product/ Service Technology: High Switching Costs Location: Global Product Life cycle: Maturity stage. The maturity stage is identifies in the mass distribution of crude oil, less product differentiation, overcapacity, lower labor skills in developed countries, & the increasing stability of manufacturing process. General information related to Value Chain * A
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MT 140: introduction to management Prof: William Whitle Unit 2: Macro environment Name: KAlsayed Date: 09-08-2012 THE MACROENVIRONMENT The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations (Brady, 2009). The changes in the macro-environment are not affecting firm’s day-to-day operations, but they are important for the continuous of the business and for being healthy. The main factors
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to stakeholder. Question 2 what reasons account for firm’s decision to use acquisition strategies as one of means of achieving strategic competitiveness? Firms use acquisition strategies to: Increased market power, Overcoming entry barriers, Cost of new product development, Increased speed to market, Lower risk compared to developing new products, Increased diversification, Reshaping the firm’s competitive scope. Question 3 what are the seven primary problems that affect
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RTE Cereal Industry Barriers to Entry Giovanni Massari 1) Economies of Scale: with regards to Economies of Scale, we have Product-Specific ones with regard to the fact that there is a minimum efficient scale of production in the industry, without which firms wouldn’t survive in the environment; requirements, in this case, are 75 million pounds of cereals per year to be efficient. Other scale economies can be Multi-Product ES (“Economies of Scope”); indeed, different types of cereals can be
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concentrated rivalry and diffuse rivalry o Greater the industry concentration, the lower the competition between rivals, thus the more profitable the firms will be • Threat of new entrants o How easily can new firms enter market? o Are there entry barriers? o Do existing rivals have competitive advantage making it difficult for other firms to enter and compete? • If so, firms in industry will likely generate higher profits than if new entrants can enter easily. • Threat of substitutes o How easily
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Chapter 3- Analyzing the External Environment Discussion Questions: Question Number Answer: 1) To identify opportunities and threats is an important reason why firms study their external environment- general, industry and competitor. Opportunities are conditions in a firm’s external environment that enables the firm to use its core competencies to achieve its vision. Threats are conditions in a firm’s external environments that prevent the firm from successfully using its core competencies. Firms
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2. The competitive structure of the brewing industry using Porter’s five forces model. a. Risk of entry by potential competitors. New micro brewing companies have low barriers of entry. New micro brewing companies do not rely heavily on brand loyalty or economies of scale. Mass market brewers our faced with higher barriers to entry because of brand loyalty of customers and absolute cost advantages. b. Intensity of rivalry of previously established companies new customers are always entering
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PART I. COMPETITIVE ADVANTAGE PROJECT FOCUS: (DO NOT INCLUDE THIS SECTION IN YOUR PROJECT – THESE ARE JUST THE DETAILS OF THE PROJECT) • Perform a detailed Porter's Five Forces analysis for The Broadway Cafe. • Be sure to highlight entry barriers, switching costs, and substitute products. • Determine which of Porter's Three Generic strategies you will use as you rebuild The Broadway Cafe for the 21st century. A paragraph describing what is and why you are using Porter’s Five Forces
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