Michael Porter’s Factor 1) Threat of New Entrants - The easier it is for new companies to enter the industry‚ the more cut-throat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: Existing loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources Government restrictions or legislation Entry protection (patents‚ rights‚ etc.)
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Industry Definition: The industry analyzed is specialty coffee retailing in North America. Threat of New Entrants: 1. Economies of Scale are low. The price of opening a new store does not gain substantial economies of scale when a firm already has many stores. Variable prices such as Aribica beans‚ cups‚ whipped cream‚ etc. will benefit from some economy of scale‚ but not enough to deter new entrants. 2. Capital Requirements are low. Property and inventory costs are not substantial enough to deter
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Bargaining power of suppliers: Medium The aircraft suppliers for Qantas are the only two largest aircraft manufacturers: Boeing and Airbus. Fuel will be supplied by companies like Shell and BP. For the IT sector‚ companies such as IBM and NCR handle the operations‚ automations and logistic systems. Hotels and catering service are also provided to the customers as well as crew members in different destination of its operations. Qantas need to maintain a fairly good communication with its suppliers
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Power of suppliers: medium The power of content producers has been greatly increased due to the multiple outlets they have the option of choosing. More content producers are making an effort to expand vertically to decrease any reliance on the companies within this industry. However‚ the target of the industry may move to smaller content producers which allow for less expensive means of obtaining content. Power of customers: high With the advent of streaming technology‚ the consumers have begun
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Dell is very famous for custom-built PC and other computer related products and selling them online. Dell is very efficient in terms of dealing with its suppliers and keeping the inventory near to zero level which helps the company to adapt JIT method which lowers the prices to the final user. According to common assumption‚ power is high where the brand is powerful. Therefore‚ Dell is assumed to have far higher bargaining power than the suppliers. Dell has been successfully managing its competitors
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Skype VS AT&T Case Analysis Trinh Nguyen MGMT 599: Strategic Management in Global Environment Dr. Ernesto Escobedo September 21‚ 2012 Background Skype was found in 2003‚ headquarter in Luxembourg‚ and now is a division of Microsoft Corporation. Skype provides voice‚ video calling‚ instant messaging‚ and short messaging services through Voice-over Internet Protocol (VoIP). With the increasing internet users‚ in nine short years‚ Skype has 124 million active users
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Predicting Skype vs. AT&T Competitive Intelligence Project Paper Guided by Prof. John E. Prescott Submitted on 30th March 2011 2011 the Fate of Firms and Industries Page 1 of 25 Page 2 of 25 Table of Contents Abstract.......................................................................................................... Abstract By Anil Pal Anupam Banerjee J. Venkatesan Karan Chatrath Shrawan Kharkia Page 3 of 25 Abstract Voice over internet is increasingly becoming
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Meredith Currin October 30‚ 2012 BADM 468 Skype Case Analysis (1) VoIP represents a great opportunity for telecom service providers to develop flexible and responsive offerings. These services can be developed as premium services by fully using the strengths of the Internet or internal intranets. These services can also be developed to use efficiencies that the Internet and intranets offer that traditional networks and network providers do not. However‚ it is not all too easy. While current
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ACQUISITION SKYPE Michael Osypenko Veranika Zdanovich Ruslan Samchuk Denis Solyan MAIN GOALS OF PROJECT • Analyze Microsoft’s latest acquisition of Skype • Understanding Skype’s and Microsoft’s business models and their product portfolio respectively • Microsoft’s reasoning behind the acquisition • How Microsoft got best benefits from the acquisition • To analyze data support of acquisition • Make your own critical conslusions KEY FACTS AND FIGURES 10th May 2011: Microsoft acquirers Skype at a price
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1. Describe the environment in which Skype competes based on the three characteristics of high-tech markets (Chapter 1). Like most Hi-Tech products‚ Skype also has to deal with the three major uncertainties in the form of Market Uncertainty‚ Technological Uncertainty and Competitive Volatility. Market Uncertainty-(1) While Skype has a huge user base by now‚ there are still many people who are uncomfortable about using Skype due to security and quality concerns. (2)Due to proliferation of
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