new 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
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- Create the ‘missing’ piece of the jigsaw, connecting Greenwich Peninsula to Woolwich town centre - Transform the image of Charlton and to introduce a sustainable mix of uses in a high quality environment focussed around an enhanced Thames Barrier Park - Contribute towards the development of the Thames Gateway as a great place to invest, live and work - Connect into the transport network - Embrace smart industry to draw greater value from employment land - Develop a creative hub to diversify
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industry that is 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
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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
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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
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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
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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
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market share, and substantial resources, they are therefore, threats to an established corporation. The threat of entry depends on the presence of entry barriers and the reaction that can be expected from existing competitors. Entry barrier is an obstruction that makes it difficult for a company to enter an industry. Some possible barriers to entry are: * Economic of Scale * Product Differentiation * Capital Requirements * Switching Costs * Access to Distribution Channels
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“The Competitive Effects of Advertising in the US Automobile Industry, - Greuner, Kamerschen and Klein “Organizational or Frictional Equilibria, X-Efficiency, and the Rate of Innovation.” The Quarterly Journal of Economics Leibenstein “X-Inefficiency Xists-Reply to an Xorcist” American Economic Review Leibenstein Introduction paper 1: Is advertising anticompetitive? Some economists argue that advertising performs a useful social function by providing consumers with information about price
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Zara Case Study Zara is a clothing and accessories retailer owned by Inditex of Spain. It is the largest and most internationalized of Inditex's chains. Zara completed its rollout in the Spanish market by 1990 and then started its expansion around that time. At the end of 2001, it operated 507 stores in countries around the world, including Spain. Zara has three product lines which are for women, men, and children, and two basic collections each year that are phased in through the fall/winter and
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