fact that there are a very small number of electricity distribution firms in the west bank with high barriers to entry as there is a high cost of production. To prove this hypothesis‚ I must attempt to correlate the supermarkets with characteristics of an oligopoly. Those are: Number of firms: few. Products are slightly differentiated (as in groceries). Size of firms: relatively big. High barrier of entrance. Similar price range. Theory: There are four different market structures‚ and
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need to have a look are: entry barriers‚ supply and distribution‚ technological factors‚ seasonality‚ economic influences and regulatory issues. Entry barriers The initial investment in the hotel industry creates quite a barrier to entry but certain barriers to entering the hotel market are reduced by the internet. A presence on the internet reduces upstart marketing costs somewhat‚ and gives the new competitor access to potential suppliers and resources. A vital barrier would be differentiation
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(Middle East and North Africa). This segment’s main goal is to expand into other countries within the region. To see the possible growth prospects‚ we take the effect of each growth prospect on each of Porter’s forces: ➢ Organic growth: The barriers to entry for this business are relatively easy. Also‚ for a property development business‚ organic growth depends not only the overall performance of the company‚ but also on the overall economic
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-Threat of New Entrants is low (=The existence of barriers to entry (patents‚ rights‚ etc.) 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
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competitive ground often dampening profitability in the industry‚ it can be used to encourage and promote greater profitability if properly implemented. The five forces that impact competitiveness which are outlined in Porter’s 1980 work are: barriers to entry‚ threat of substitutes‚ bargaining power of buyers and sellers‚ and the rivalry among existing competitors. In 2001 Porter considered these factors in light of the internet technologies. The influence of the internet has been profound especially
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the profitability potential in an industry -Each force can reduce the probability that a firm can earn profits while competing in an industry Potential Entrant - can take market share away - force to learn new ways to compete - Barrier - Economies of scale – cost disadvantage - Capital – lack the resources (physical & human) to compete‚ competitive disadvantage - Switching costs – college‚ machine - Differentiation – brand loyalty - Access to distribution
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Scanning the Marketing Environment Who are the primary competitors? How to ascertain their strategies‚ objectives‚ strengths and weaknesses‚ and reaction patterns? What are the key methods for tracking and identifying opportunities in the macro-environment? What are the key demographic‚ economic‚ natural‚ technological‚ political‚ and cultural developments? The Marketing plan Market survey Segmentation Identifying needs and wants Targeting Choosing a target market(s) Developping a market
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Industry According to porter the key barriers to entry are economies of scale capital expenditure requirements ‚ customer switching costs ‚ access to industry distribution channels ‚ and the threat of retaliation by the existing Industry players . Considering these factors for the Petroleum Industry the economies of scale is very high because of its capital-intensive nature of operations there fore new entrants face economies of scale as a barrier to entry in to Petroleum industry . As explained
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the global scale.Threats of New entrants to an industry can raise the level of competition‚ thereby reducing itsattractiveness. The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in some industries . whereas other industries are very easy to enter .Key barriersto entry include- Economies of scale- Capital / investment requirements- Customer switching costs- Access to industry distribution channels- The likelihood of retaliation from existing industry
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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
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