threat posed by these substitutes exist at a high level. However these risks can be mitigated through diversification and offering more products in the portfolio. Since the range and the number of suppliers far exceed the buyers in the market‚ the industry has a very bargaining power. Most of the inputs required are basically commodities and available on a global scale. Potential Entrants - Brand awareness and loyalty of established brands - Technical know how required is low - Well
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1. Concepcion-Carrier Air Conditioning Company Formed in January 1998‚ Concepcion-Carrier Air Conditioning Company (CCAC) brings together two leaders in the air conditioning industry: Carrier Corporation of the United States and Concepcion Industries‚ Inc. of the Philippines. In just a few years‚ CCAC expanded from manufacturing window room air conditioners to becoming the market leader in virtually all categories of Heating‚ Ventilating and Air Conditioning (HVAC) equipment and services in
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should be illegal to drive while using a phone because it distracts drivers from the road and makes the roads unsafe. Although some believe it should not be illegal‚ actually it should because driving and being on the phone is one of the main causes for death and accidents in the United States. While driving‚ if someone looks at their phone for more than three seconds it doubles the chance of getting into an accident. A driver on their phone may not have their eyes on the road‚ so they might not
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Customers a) This industry has a great # of customers‚ therefore they have less power. b) The customer makes relatively small purchases‚ as coffee is a generally low involvement product. c) Specialty coffee purchases are relatively small in regard to other purchases. Over the course of a consumers life however‚ coffee purchases can equivocate to a substantial amount. d) The specialty coffee industry offers much product differentiation. The specialty coffee industry involves great importance when
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Introduction This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. In spite of restrictions and awareness campaigning runned by the government‚ these companies are trying to grow through acquisitions‚ alliances and closures within the industry. Companies are concentrating on expanding their existence into other markets. Some other companies are concentrating on innovation‚ branding. Moreover they are fighting on cost
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Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading‚ sorting‚ packaging which enhance shelf life of food products. The Food Processing sector in India is one of the largest in terms of production‚ consumption‚ export‚ and growth prospects. The industry added over INR 84‚000 Crore in the GDP (2012-13)‚ thereby constituting approximately 1.5% share in the GDP. It is estimated that in FY 2013-14‚ the value of processed
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NICs have been and continue to be the driving force of globalisation. Discuss. An NIC stands for a Newly Industrialised Country. It is a term used to describe a country that has moved away from an agriculture-based economy and into a more industrialised‚ urban economy. These countries have a high growth rate. Current NICs include China‚ India‚ Brazil‚ Malaysia‚ Mexico‚ South Africa‚ Philippines‚ Thailand and Turkey. The average growth rate between these countries is approximately 7.64% compared
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air transport providers in New Zealand. Although they are the two competitors in the market‚ they adopted different strategies. Air new Zealand focuse on customer service kiwi experiences and Jetstar intrduced a low cost business to the aviation industry. Jetstar offers lower airfares to passages not only they can book flights through the internet‚ but also can quickly identify the cheapest available flights. In 2006‚ Air New Zealand launch a new online domestic campaign called grabaseat. This
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Threat of New Entrants is low The airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The main concern for this is the cost of entry. The airline industry is one of the most expensive industries‚ due to the cost of buying and leasing aircrafts‚ safety and security measures‚ customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands
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automobile industry but it is a very low threat. It is a big market but the capital which is required for a company to invest to get into this industry is a very large amount of money. The emerging companies may not have that kind of funds when they start off so it is tough to compete with the established major players like TATA‚ Mahindra‚ and Ashok Leyland in the market. 2. Bargaining power of buyers:- In the commercial vehicle segment a customer purchases one vehicle for his/her industry but the
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