The tobacco industry is a very competitive market and only about 3 very large corporations control the entire market. In Malaysia, British American Tobacco (BAT) is the biggest company in the industry, but others such as JT International are steadily growing in brand name. All companies battle for market share through heavy advertising budgets and slotting deals. The cigarette market is well into the maturity stage, and some might even argue that given the recent anti-smoking campaigns and lawsuits
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1. Threat of new entrants – high. Malaysia is becoming an important expansion base for Western retailers. Even as big retail brands and labels focus their attentions on the emerging markets of China, India or even our ASEAN neighbors, they too have seen it fit to establish a presence in Malaysia as well. Increasingly, Malaysia will see more international retailers venturing into the market directly as opposed to via the traditional gateways of Hong Kong and Singapore. In the past year itself, there
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Company name: Nike Inc. Industry: Footwear/accessories Stock symbol: NKE Buyer Power: High Nike is the largest athletic footwear and athletic clothing in the world. It focuses on many categories such as Running, soccer, football, golf, basketball, women’s accessories, wrestling, and many more. However, this analysis will focus on footwear products. Nike sells its products to retail accounts, which are then sold to consumers; they will often pay for what they want. When price transparency
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Porter’s 5 Forces Analysis = Suppliers, Customers, New Entrants, Substitute Products, Competitors What is Porter’s 5 Forces Analysis? Porter’s 5 forces analysis represents the competitive environment of the firm. It is a strategic foresight to avoid putting the competitive edge at risk and ensure the profitability of products on a long term. For the company this vision is quite important because the firm is able to direct its innovations in terms of choice of strategies and investments. The profitability
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New Entry | Rivalry | Suppliers | Buyers | Substitutes | High/Mod/Low | High/Mod/Low | High/Mod/Low | High/Mod/Low | High/Mod/Low | Barriers to entry (reverse) - Are Economies of Scale an important part of this industry?(Y/N) - Do incumbent firms possess substantial brand identification and customer loyalty that potential entrants do not? (Y/N) - Are there significant cost advantages independent of scale in this industry (Table 2.2)? (Y/N) - Do governments regulate this industry? (Y/N)Yes answers
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Five Force Analysis: Supplier Power The beer market’s prime suppliers are farmers. Most breweries buy their supplies on the relevant countries’ futures exchange. Hence the branch has an opportunity to diversify its risk by trading futures contracts as well as hedging other risks. Various farmers supply the hops, barley, corn and rice used to produce beer. In 2008, there were 2,053 companies that purchased these ingredients. The overall beer industry sold nearly 206 million barrels of beer in 2009
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5. SECTOR : NIVELES Y DEFINICIONES SECTOR (I) : MACRO CINCO FUERZAS COMPETITIVAS. CICLO DE VIDA 5.1. DOS NIVELES DE ANALISIS : MACRO Y MICRO El sector se analiza en 2 niveles: * El macro: (capitulo 5) estudia al sector globalmente. Su objetivo es definir como es la estructura del sector, su atractivo, la rentabilidad que obtiene y como la obtiene. ¿Por qué hay sectores mas rentables/atractivos que otros? * El micro: (capitulo 6) se pregunta por las empresas. Su objetivo es
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Employment Act, a person who has suffered from discrimination in housing may receive: A. an opportunity to buy or rent the property if it is still available B. an opportunity to buy or rent a similar property C. money damages D. Any of the above 5. A prudent lender who is deciding whether or not to make a real estate loan to a prospective borrower will ensure that: A. the market value of the property is greater than the loan amount B. the borrower's credit is satisfactory C. the borrower has adequate
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Macro-environment PEST analysis is used to provide a summary on the key forces which is likely to affect healthcare industry at the level of the macro-environment. Malaysia has been seen as one of the best destination for medical tourism for its modern private healthcare facilities as well as highly efficient medical professionals (Arshad, Velasamy and Wong, 2014). According to Matta president Hamzah Rahmat, the weakening Ringgit Malaysia is perceived to have benefited the medical tourism industry
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employees (Forbes, 2013). Revenue for APPL in 2013 has risen from $155.97bn in 2012 to $170.87bn in 2013 (Market watch, 2013) which is a 9.6% increase. The objective of the Porter’s 5 forces model is to identify and elucidate the current levels of competition existing with a market, by examining what the 5 forces involve. ‘The model therefore provides a detailed and nuanced picture of the industry and to make an in-depth analysis with an idea of what factors one can try to influence in order to
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