Marketing Management Notes on Chapter 11 | DEALING WITH COMPETITION [Keller/Kotler] Five Forces Determining Segment Structural Attractiveness (Porter’s Model) Figure 1.1 Industry Concept of Competition * Number of sellers and degree of differentiation * Entry, mobility, and exit barriers * Cost structure * Degree of vertical integration * Degree of globalization * Pure monopoly – only one firm offers undifferentiated product or service in an area * Oligopoly
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firm this refers to a monopoly. A monopoly can arise because of different reasons, when a firm controls an exclusive natural resource or technical expertise. In industry A that has twenty firms and a concentration ratio of 30% would mean that competition is fierce, since there are many companies producing the same product and neither of them
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FACULTY OF MANAGEMENT AND ADMINISTRATION MBA FULL TIME Scenario - One Most people laughed when Jenny Nel explained her product idea – a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children’s toys. After setting up a demonstration booth in the Greenacres shopping centre in Port Elizabeth, Jenny felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of
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Name: Institution: Instructor: Date: LP: SIX COFFEE PRICES Characterization of a perfect competition market depends on a number of issues or attributes. Evidently, the coffee market is not a perfectly competitive market given the fact that the players in the market are not price takers. Corporations that buy coffee from the farmers are acting as cartels in a bid to affect the prices of coffee, which is consequently hurting the farmers who receives little payment of their coffee. Oxfam is giving
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1. Does the industry offer attractive opportunities for growth? Yes. Tourism is a sunrise industry. Many countries have substantial support it, because tourism can drive a lot of development of other industries such as restaurant and souvenirs business and hotel and so on. 2. What kinds of competitive forces are industry members facing, and how strong is each force? Rivalry among Competing Sellers: moderate to normal * Buyer demand is growing rapidly * Buyer costs to switch brands
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indows 7 which will eliminate any advantage iPhone has at operating system front. World is witnessing recession. USA has entered into deflation era. Economic Scenario is not better elsewhere either. With shrinking economy and job cuts, people will not prefer to spend on costly phones. The iPhone is competing on differentiation. Apple should make iPhone available at lower price to fight competitors at price front. Also, launch of 3G version of iPhone will provide strength to it. As economy is
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been relaxed which helped JCB to acquire Escorts and gained full control over its operations in India. They have opened a second factory in China to help its expansion in India and China. Their expansion has helped them to gain advantage over the competition from other global competitors like Caterpillar and Volvo. The drawback for the strategy if any for JCB is that being a pioneer to the Indian market, they must use their resources to rapidly develop a stronghold in India. They must capitalize on
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Case 1: Appliance maker The challenge Senior executives at a large, low-cost manufacturer of appliances and white goods were concerned about the sluggish performance of the company’s household fan business. It had long been among the top leading players in the company’s home country—an emerging market—but was now losing domestic share in two important, and fiercely competitive, product categories. The company’s leaders suspected that a stagnant product portfolio was partly to blame; they had been
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| | | | | | | | | | | • | Increased internet exposure | | | • | Increased competition from brick and | • | Increased sales | | | | | mortar stores like Home Depot. | • | Larger customer base | | | • | Increased competition from online | • | Profit margins will be good. | | | | retailers such as Amazon. | | • | Could seek better supplier deals. | | • | Competition can
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to sell to consumers. Profits are earned by doing better than competitors in satisfying consumer demands. Political profit-seeking (or “rent-seeking”) is based on using time, money and resources to gain privileges, favors, subsidies, and anti-competition regulations from the government at the expense of consumers and potential competitors. It is the method of special interest groups trying to use government to benefit themselves. Resources, money, time go into political manipulation and influence
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