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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Busa 6800: Strategic Management Mid-term 1. Complements – define and apply (pg. 52/53) Complementors: Players with whom a firm interacts but may not necessarily transact. The concept of complementors is perhaps the single most important contribution of value net analysis Complementors typically are products or services that have possible impact on the value of a firm 's own products or services. Those who produce complements are usually referred to as complementors. Powerful
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Format for Strategic Analysis Report Strategic analysis of: _______________________________________ (case or company) EXTERNAL ENVIRONMENT MACRO ENVIRONMENT Political: • Regulation • Trade barriers • Change in tax laws/incentives • Other… Summary Legal: • Anti-trust • Equal pay/employment • Environmental protection • Health & Safety • Other… Summary Economic: • Interest Rate • Recession (aggregate demand) • Energy prices
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development. Introduction of LTE will totally change the way of communication. You don’t need cable and you don’t need to sit in front of your computer. You can access internet whenever and wherever you are. Porter’s five forces analyses Barriers of entry Communication business
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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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