Preview

Threat of Entry

Good Essays
Open Document
Open Document
343 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Threat of Entry
Threat of Entry

Significant economies of scale the price of laptops has come down in recent years and the prices of some printers are more expensive than others that are smaller! Part of the reason for this is that there is a different degree of technology involved in the production of some of these products and, in addition, it is not likely that they will be produced in the quantities that will allow the benefits of economies of scale to manifest themselves.
With most multinational corporations there are two separate economies operating between the actual company and the markets. The separate economies are internal and external. Internal: Tech Economy, Managerial Economy, Financial Economy, Marketing Economy, Research & Development
External: The external aspects of scale economies consist of the distribution centers and retailers. For example; Apple, Sony or HP manufacture computers, while retailers arrange for computer deliveries to the customer. One exception is Dell, which has excelled in custom-built computers delivered straight to a consumer’s home.
Scale Economies it is estimated by analysts that in the near future the top 5 vendors may control 70% of the global personal computer market.
Advances in computing power as well as communication technologies of close substitutes such as smartphone make the competition fiercer.

The importance of reputation or established brand loyalties is high. To meet the different market’s needs, nowadays laptop companies produce more heterogeneous products than 10 years ago. People buy laptop not only to

The experience-base advantages of incumbents are really high too. Established companies in the laptop industry have resources like capital, technology skills, raw material and operation management experiences. They have more chance to hire top managers and talents. Those things are really difficult for a new entrant to do. The information for the government protection of incumbents has

You May Also Find These Documents Helpful

  • Better Essays

    Electronics over the past fifteen years have become an everyday essential in today’s market. The use of personal computers skyrocketed from being in higher income households to common place in almost every home. Equalus Inc. is excited to jump into the world of desktop computers and notebooks by providing service to the masses of a “build-your-own” personal system with tech help and customer service all originating within the United States. Based on a series of questions Equalus will be able to build a desktop or notebook to the user’s needs. Consumers will no longer wonder if their purchase will be able to handle what they need it to do and last for as long as they need it to. With the type of business Equalus will be bringing to the consumer the closest competition would the Hewlett-Packard (HP). This analysis of HP is in attempts to foresee any possible issues that may occur for Equalus and provide an accurate description of the market competition.…

    • 1277 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Comm 210

    • 3731 Words
    • 15 Pages

    Economies of scale: Large companies can produce products at a much lower cost than small ones because the cost per unit drops as the volume of output rises…

    • 3731 Words
    • 15 Pages
    Good Essays
  • Powerful Essays

    Unit 3: Albatross Anchor

    • 1472 Words
    • 6 Pages

    A company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods (Hindle, 2008). As a company grows and production units increase, a company will have a better chance to decrease its costs. According to theory, economic growth may be achieved when economies of scale are realized (Heakal, 2009). There are two types of economies of scale – external and internal. External are economies that benefit a firm because of the way in which its industry is organized. Internal are cost savings that accrue to a firm regardless of the industry in which it operates (Hindle, 2008). Economies of scale give companies access to a larger market by allowing them to operate with better geographical reach.…

    • 1472 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    b) Economies of Scale in material purchasing: company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods (Hindle, 2008). As a company grows and production units increase, a company will have a better chance to decrease its costs. According to theory, economic growth may be achieved when economies of scale are realized (Heakal, 2009). There are two types of economies of scale – external and internal. External are economies that benefit a firm because of the way in which its industry is organized. Internal are cost savings that accrue to a firm regardless of the industry in which it operates (Hindle, 2008).…

    • 436 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Assignment 1

    • 3095 Words
    • 8 Pages

    Smelser, N. and Baltes, P. (2014). Multinational corporations. [online] www.columbia.edu. Available at: https://www0.gsb.columbia.edu/faculty/bkogut/files/Chapter_in_smelser-Baltes_2001.pdf) [Accessed 3 Aug. 2014].…

    • 3095 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Midterm Study Guide

    • 3957 Words
    • 16 Pages

    * multinational company - more than 2 countries. the market-based, cost-based, and strategic motives a firm has to expand internationally. After this, we studied how global companies exploit economies of scale, economies of scope, and national differences to achieve their three generic objectives: (1) efficiency in current operations, (2) managing risks, and (3) innovation, learning, and adaptation. We concluded by introducing the nature and complexity of the international environment of international companies. (University 20)…

    • 3957 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Microsoft Antitrust Paper

    • 1165 Words
    • 5 Pages

    Microsoft possesses a dominant, persistent, and increasing share of the world-wide market for Intel-compatible PC operating systems. Every year for the last decade, Microsoft's share of the market for Intel-compatible PC operating systems has stood above ninety percent. For the last couple of years the figure has been at least ninety-five percent, and analysts project that the share will climb even higher over the next few years. Even if Apple's Mac OS were included in the relevant market, Microsoft's share would still stand well above eighty percent.…

    • 1165 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Toshiba had built its strength in the notebook PC market by beating its competitors to the market with aggressively priced, technologically superior products. Competition in the notebook PC market was fierce, and Toshiba could retain its position as market leader only by relentlessly improving its manufacturing processes and lowering costs. Toshiba had some formidable advantages over its competitors, stemming largely from huge investments in such technologies as thin-film transistor (TFT) color displays, hard disk drives, lithium-ion batteries, and CD-ROM drives. In addition, by forming partnerships and joint ventures with other industry giants, Toshiba could share the risk of developing expensive new technologies. With its highly automated factories and sophisticated communication networks, Toshiba brought formidable manufacturing expertise to these alliance.…

    • 500 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Apple Case Analysis

    • 1535 Words
    • 7 Pages

    In the software sector, the competitor base is rather different where one company, Microsoft, has substantial market share on PC based machines. However Apple offers its own operating system on its own Apple computers, the software is not compatible with PCs. It can be said the market share in the software industry is directly proportional to how many hardware units it sells, and also how well it can get consumers to upgrade to their new OS X operating system. Apple with 6 percent in the desktop market and 10 portable has been fighting a losing battle for market share in the education market to companies like Dell. Apple is hoping to find new markets to enter with its iTunes, iPod, and iMac products.…

    • 1535 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Threat of Entry

    • 1122 Words
    • 5 Pages

    nditions, in 2008, Best Buy Co. asked its employees toseparate from the company on voluntary basis (ecoustics, 2008). This strategy allowed thecompany to settle down in the market to some extent. By the end of fiscal year 2008, its revenueshowed remarkable stability and consistency proving the decision of cutting down work forcewas right (ecoustics, 2008).Corporate partnership with C…

    • 1122 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The two multinational corporations I am researching are Amazon and Netflix. Amazon is the largest online retailer and Netflix is an industry giant in the movie streaming or DVD rental business. Both began as small companies with fewer than 100 employees and now are multi-billion dollar corporations as a result of their innovation and their desire to be elite.…

    • 920 Words
    • 4 Pages
    Good Essays
  • Good Essays

    In the fourth quarter of the PC market in 2006, the U.S. domestic industry recorded 3% unit growth. Although the industry is providing positive numbers, it is controlled by 5 key manufacturers that construct a barrier to entry for smaller computer manufacturers. Each firm has strong brand names and has the right mixes of resources and capabilities. Small firms lack the resources and capability of acquiring enough capital to compete with the larger firms.…

    • 621 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Compared to main competitors, Lenovo has three strengths. Firstly, Lenovo’s market share in China is dominant compared to other competitors like Dell and HP. Lenovo is one of the leading brands in China and has maintained this leading place for over 10 years. The company’s overall PC market share in China reached 34.6% in the 2007 fiscal year, an increase of 0.7% over the record in 2006. Moreover, Lenovo’s greater China division has been achieving 24% year-on-year growth in PC shipments during recent years and this helps to strengthen its leading market position in China (lenovo.com).…

    • 1499 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Acer Swot Analysis

    • 393 Words
    • 2 Pages

    Opportunities: Acer had competed on delivering a reliable PC’s and laptops at a competitive price. Similar market entry model would be useful to enter the eBook Readr market and the iPad© market. Acer would be a good competitor in the eBook Reader market and had the ability to enter a new market of acquire an existing manufacturer. Acer was successful in acquiring Gateway©, emachines and pockard bell (Acer inc., 2010). This success will help Acer to integrate its existing assets or set up new manufacturer to producer eReders or similar products that does iPad functions. Acer can also compete in the Asian market by using its low price model. The Asian market is huge and would consume many of Acer’s products if marketed well.…

    • 393 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten ship requirements and had achieved an award-winning use of thermoplastics and other recycled packaging materials.…

    • 1619 Words
    • 7 Pages
    Better Essays