when the cost of an investment can be spread across increasing units of production or in serving a growing customer base. A growing firm may also gain bargaining power with its suppliers or buyers. Scale of technology of investment can also act as a barrier to entry, discouraging new, smaller competitors. Economies of scale BlueNile (sold as many diamonds in 1 year with one location as a traditional jeweler would with 116 stores.) Bargaining power with suppliers or buyers Dell (make concessions)
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com/porter’s-five-forces-model-2/ 1/2 4/9/13 Porter’s Five Forces Model | TNMG: The Next Marketing Guru Ideal scenario to enter an industry is: Entry Barrier=High, Buyer Power=Low, Supplier Power=Low, Threat of Substitution=Low and Competitive Rivalry=Low to medium. Current players try to build high entry barriers to prohibit new comers from entering. Examples of high entry barrier – strong distribution channel of ITC in the Cigarette industry. Example of low Supplier Power – HUL getting long credit periods from
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buyer's profit margin, multiple sources, threat of integration, volume orders Threat of Substituted Products: price/quality of substitute, buyer switching cost Rivalry among firms: # of competitors, size of competitors, industry growth rate, exit barriers, similarity. (-) static, zero-sum game (no collaboration between firms), perfect info (all you need). 3. Industry Evolution a)2 mechanisms b) Founding rate c) Failure rate 4. AMC Model * Attacker
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Q1. How has Panera Bread established a unique position in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not? Panera Bread has established a unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services
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The South African Competition Act of 1998, implemented on 1 September 1999, establishes a range of criteria for evaluating mergers and company practices that are deemed to harm economic efficiency, among other objectives. In particular, the Act prohibits a range of practices if the firm is ‘dominant’, including charging an ‘excessive price’, engaging in an ‘exclusionary act’, or price discrimination (Sections 8 and 9). ‘Dominance’ is defined as having at
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GROUP : STAKEHOLDER MEMBER : Dini Siti Ayu Ariani 19010025 Dora Lisnandani M. Firdaus Ivadaputra 19010112 Risky Adha Kayom Nursalim Hanny Aqmarina Hartini Soraya 1. Identify and explain the Opportunities and Threats of the assigned external forces. Opportunities * Cooperation with a number of other national companies. The company, PT Len Industri for the development and production of inverters, battery management system, charging system and DC-DC converter electric
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retaliate? 6. Govt. action. 7. How important is differentiation? Entry barriers Govt. policy related (Coke, FDI in Retail ) Technology related (Steel, Thermal, Aluminium) Marketing related ( Distribution, Contacts, Differentiation ) Ex: Control, Sony could overcome the entry barrier The product categories and the entry barriers ( Cigarette as a Product category and its marketing and technology related entry barriers) Threat of Substitutes This is High where: • There is Product
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and capacity to assess why postentry competition may be like. Barriers to Entry Structural entry barriers exists when the incumbent has natural cost of marketing advantages, or when the incumbent benefits from favorable regulations. Strategic entry barriers result when the incumbent takes aggressive actions to deter entry. Bain’s Typology of Entry Conditions * Blockaded Entry Entry is blockaded if structural barriers are so high that the incumbent need do nothing to deter entry. For
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Gap Inc. in 2010: Is the turnaround strategy working? Gap Inc. is a leading international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies. Gap owned and operated more than 3,100 Gap, Banana Republic and Old Navy stores world wide in 2010. With stores located in the U.S, UK, Canada, France, Japan and Germany, Gap Inc. employees nearly 165,000 employees world wide. Since 2002 Gap Inc. has been a number of issues including the declining
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Overview Of Telecom Industry | | | Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts
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