QUIZ 2 tips ● General Environment Dimensions in the broader society that influence an industry and the firms within it ● Industry Environment-more direct effect on strategy Set of factors that directly influences a firm and its competitive actions and response ● Competitor Environment Focuses on each company against which a firm directly competes ●The General Environment is grouped into seven environmental segments: page 38 [1] Demographic – population, age, geographic distribution
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macro-environment 2. According to Porter, what determines the level of competitive intensity in an industry? Michael Porter's analysis of industries captures the complexity of industry competition in five underlying forces. These are, Threat of Entry, Threat of Substitutes, Supplier Power, Buyer Power, and degree of Rivalry. 3. What should be scanned in the task environment? Task environment is actually another term for the industry environment. The four main components that exert influence
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CUSTOMER LOYALTY : THE CASE OF MOBILE PHONE USERS IN UNIVERSITI UTARA MALAYSIA Prepared by Meguellati Achour Pn. Nor Pujawati Md. Said Dr. Ali Boerhannueddin Abstract Service quality, switching barriers, and brand image are the major antecedents of customer loyalty, and loyal customers may buy more, accept higher prices and have a positive word-of-mouth effect. Also we know that the cost of selling
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and the industry is characterized by freedom of entry and exit (Perfect Competition, 2013). The nail salons in my area are in perfect competition. They all offer beauty services primarily of nail care like manicures, pedicures, and nail enhancements as well as eyebrow trimming and waxing. There are many nail salons in my area as well as all over the United States and other countries. They all offer a standardized service of nail care. Barriers to entry in the nail care services are small (Taulli,
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high due to weak domestic demand, excess global capacity, a maturing industry, low switching costs, high exit barriers, rising operating costs (increasing raw material prices), and more than 5 comparable competitors. The threat of entry is low due to high barriers to entry (economies of scale have been achieved and high capital requirements), growth and
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Medium to high Buyer’s power is high because they plan to sell mature industries. Suppliers’ Power – High Suppliers’ power is high because they have to make their full payment in advance before they pick up their product. Barriers to Entry – Low Barrier to entry are low because it is a cheap price product and easy to manufacture. Threat of Substitutes – High Substitutes are high because there are many different types of utensils that can be used instead of the pasta server. Rivalry – High
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offers a large potential market for the Sports Company’s products. With the third largest GDP growth, this market is also captive. Vietnam is a young, growing country. With brand awareness spread by the Viet Kieu, the market in Vietnam is primed for entry. However, there are many issues that stand in the way of the Sports Company. The Sports Company has significant knowledge in the global marketplace, being ranked second in most of its product markets. This expertise will help the Sports Company
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Question #1 A few of the macro-environmental factors that affect the Gourmet chocolate industry are the sociocultural segment, the demographic segment and political/legal segment. In recent years people have become more health conscious. The chocolate/candy industry has responded to this sociocultural change by introducing new products to reach these health conscious consumers. There has been an increase in the production of no-sugar-added and sugar-free chocolates and candies. In addition
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customer loyalty. Harley-Davidson has been able to maintain a competitive lead in large motorcycles due to intense customer loyalty. Disadvantages of first movers High risk High development costs High demand uncertainty First mover market entry • Advantages Above-average returns until other competitors respond effectively Start down the learning curve earlier Opportunity to gain customer loyalty Opportunity to set standards Disadvantages • Uncertainty about demand • High development
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various barriers to entry to a market and how these barriers might affect market structure Barriers to entry are designed to block potential entrants from entering a market profitably, they seek to protect monopoly power and usually have the effect of making a market less contestable. In a perfectly competitive market barriers to entry are not allowed as otherwise the market would not be perfectly contestable as one firm will have an advantage over another. One barrier to entry in a market is research
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