THE EXTERNAL ENVIRONMENT: OPPORTUNITIES, THREATS, INDUSTRY COMPETITION AND COMPETITOR ANALYSIS. “It is not the strongest species that survive, nor the most intelligent, but the one most responsive to change.” Charles Darwin Today, two types of strategies exist: proactive/reactive. Anticipation, change, adaptability is necessary nowadays so the proactive strategy (ex: Coca Cola). External environment conditions create both threats and opportunities for firms that have major implications for their
Words: 2873 - Pages: 12
paragraphs. 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
Words: 785 - Pages: 4
suppliers; Alcoa, Alcan and Reynolds Metal. Aluminum is classic oligopoly dominated by Alcan and Alcoa. Reynolds may benefit from R&D synergies. Also there is a threat of forward integration. =>High l Threat of new entrants It seems that barriers to entry are low. Product differentiation and switching cost is not that high. Capital costs for three-piece can product lines are relatively low but capital costs for a two-piece can line is $20-25 million. =>moderate l Substitute There are many substitutes
Words: 523 - Pages: 3
the current members of the industry ← Includes imports from firms seeking economies of scale ← If it is easy to enter the industry this will tend to force industry prices down ← Threat depends on the height of barriers to entry ← Examples of entry barriers: ← Economies of scale - entrant must either enter on a large scale or accept a cost disadvantage ← Differentiation - brand identification and customer loyalty has to be overcome ← Capital requirements - how much
Words: 970 - Pages: 4
entrants, the metal container industry does not seem to be attractive due to the high barriers to entry. Most of all, the economies of scale provide current players with economic advantages that would be extremely difficult to reach for new entrants. Additionally, the saturation of the market does not make it very attractive to new entrants, as competition for current sales is so intense. The high barriers to entry are, however, an advantage for current producers, which do not have to be scared by the arrival
Words: 1534 - Pages: 7
being stagnated by the rise in electronic communications (e.g. email) and imports. According to the case, Forest Hill operates in a cyclical environment due to customer buying habits. An advantage for Forest Hill is that there are high barriers to entry within this market due to equipment costs and governmental regulation. Forest Hill can be classified as a “small paperboard manufacturer that produces a broad line of paperboard in large reels.” Forest Hill Strategy: According to the case, “as a small
Words: 291 - Pages: 2
Delta Airlines Board of Directors Presentation October 18, 2013 Consultants: General Overview of Delta Airlines Strategy COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing, but still below cost of capital Consolidation trend has reduced rivals helping profits DELTA’S CURRENT STRATEGY Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions, on-time arrival rate and decreasing mishandled
Words: 2041 - Pages: 9
How do exit and entry barriers affect internal rivalry? a. Entry barriers: When new firms join an industry, it hurts the other firms that where there before by cutting into their market share and by intensifying internal rivalry, which ultimately leads to a decline in price cost margin. In essence, anytime a firm joins, the rest of them lose, to some degree, market share and revenue. The entry barrier becomes a factor that helps to understand how many firms are competing against each other
Words: 264 - Pages: 2
1. What is Groupon and how does it work? What is Groupon’s market? What does this company do and how does it make money? Groupon is a deal-of-the-day recommendation service for consumers. Every 24 hours, Groupon broadcasts an electronic coupon for a specific service while also offering you a 50% to 90% discount if you purchase that service as long as and Groupon has a minimum number of purchasers The Groupon’s typical customers are young, well-educated, single, urban female, employed with significant
Words: 917 - Pages: 4
Individual Assignment 2 1) If the company has already made the decision of going ahead with the musical and either if it will be a success or a flop they will still generate profits, there’s no sense in doing a market research. 2) A cartel is formed by a group of companies/countries which come together explicitly or tacitly to restrain supply of a certain good so that they can practice a monopolistic price or set specific prices for goods (price-setting). Eventually there’s more to
Words: 1742 - Pages: 7
