product enhancement‚ customer lock-in‚ raising entry barriers‚ and alliances to defeat copycat products 2. What role did information systems play in your answer to question 1? Information systems were very important. The database of trainer data was used extensively to help create and maintain the close relationship Fitness Quest desired with their trainers. 3. What additional information systems could Fitness Quest develop to create barriers to entry to the competition and to lock in customers
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Competitive Forces (Porter’s 5 Forces) Analysis of the competitive environment can be done utilising Michael Porter’s 5-forces model of UPS and FedEx. Porter’s theoretical framework allows us to determine the overall profitability and sustainability within the industry (Laudon & Laudon 2006‚ pg.99; Hubbard 2004‚ pg.211). We reckon that in this case‚ the competitive forces for both UPS and FedEx are very similar because they are both in the same industry. Power of substitutes: Communications
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about 20% market share. Thus‚ the concentration ratio for this industry is very low. High growth prospects make it attractive for new players to enter in the industry. Another major factor that adds to the industry rivalry is the fact that the entry barriers to pharmaceutical industry are very low. The fixed cost requirement is low but the need for working capital is high. The fixed asset turnover‚ which is one of the gauges of fixed cost requirements‚ tells us that in bigger companies this ratio is
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Applying Porter’s Five Forces Model: The Metal Container Industry The metal container industry historically has been characterized by relatively low growth‚ intense competition‚ and unattractive levels of profitability. During the 1980s‚ this industry was negatively affected by such factors as further consolidation of soft drink bottlers and a strong trend toward substitution by many types of plastic packaging. The underlying reasons for the slow growth and low profitability of the metal container
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strategies for noise mitigation for airports‚ highways‚ or railways. Under what circumstances would you considered each to be appropriate? -The most fertile areas for the highways noise mitigation are in urban planning decisions‚ highway design‚ noise barrier design‚ speed control‚ surface pavement selection and truck restrictions. Speed control is effective since the lowest sound emissions arise from vehicles moving smoothly at 30 to 60 kph. Above that range‚ sound emissions double with each five miles
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Abstract Corporate strategy should meet the opportunities and threats in the organizations external environment. Especially‚ competitive strategy should be based on an understanding of industry structures‚ and the way they change. Michael Porter provided a frame work that models an industry as being influenced by five forces. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify
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Barriers to critical thinking The first barrier that influences my thinking would be‚ Credibility having to be raised with parents that underestimate the importance of honesty has actually affected and affect my critical of thinking. Growing up in this environment was hard for me because I learn to think like my parents. As a child‚ I used to think that everything other kids told me was not true and I couldn’t trust them. As I got older‚ it became an issue in my personal life‚ believing‚ and
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Market and environmental analysis of McDonalds Corp – 2003. Market and environmental analysis is an essential part of an organization’s External Analysis. The main objectives of a market analysis are; a) To determine how attractive a market is. b) To understand the dynamics of the market and amend strategies accordingly. Here we apply the dimensions of a Market Analysis to McDonalds corp. 1) Emerging submarkets; McDonalds failed to recognize the changing trend in customer’s preferences
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Threat of New Entrants: Barriers to Entry Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages independent of scale Government policy Expected retaliation Barriers to Entry Economies of Scale Marginal improvements in efficiency that a firm experiences as it incrementally increases its size Factors (advantages and disadvantages) related to large- and small-scale entry Flexibility
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environment of American was good. According to the article‚ I think eBay only realized that China and Japan have a huge market with millions of people through the research chart and data‚ but they did not realize other factors‚ such as the enter and exit barriers‚ new entrants and competitive environment. After eBay got into the Chinese market‚ there were many new e-commerce companies or entrants come out and compete with eBay. On the other hand‚ I think eBay may have some problems on deal effectively with
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