you can bring costs down) and the ratio of fixed to variable costs‚ and excess capacity and exit barriers. 2. Threat of new entrants New entrants can force firms to set prices to keep industry profits low. The threat of new entrants can be eased by economies of scale‚ the first mover advantage‚ greater access to channels of distribution and existing customer relationships and legal barriers to entry. 3. Threat of substitute products The threat of substitute products can force firms to
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have already gone over this paragraph One and two but I have another answer. The barrier to entry for gaming is relatively low much lower than most normal sports‚ for example any kid could throw football but almost love those kids get into the NFL even with efforts. However the Italy thing about gaming is practice you don’t need to join a team to beat you don’t have to pay to enter most games the only barrier to entry is you and how good you are at the
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Influence the nature of competition within it‚ the forces inside the Industry (microenvironment) that influence the way in which firms Compete‚ and so the industry’s likely profitability is conducted in Porter’s five forces mode. BARRIERS TO ENTRY •Time and cost of entry – Time is most
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Para 7) Automation became substitute for traditional machining ( Page 7 ‚ Para 2) 1|Page 4) Threat of New Entrant (Low) Out of 70 manufacturers‚ top 5 were holding 67% market share ( Ref Table F ‚ Page 8)‚ there is stiff entry barrier for new entrant. Automation trend lead to heavy investment ( Ref P 10‚Para 2 ‚ B&D ) which was another hurdle for new entrant. 5) Rivalry among existing competitors. (High) Slow Industry Growth & High number of competitors ( Ref Table F
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storage operators are engaged by either the producers or (most commonly) buyers (mainly) organized retailers to render packaging‚ pre-cooling and storage services. Geographic carrier: We will be looking at this industry at the pan-India level Barriers to entry Economies of scales: It is a largely untapped‚ fragmented & full of unorganized small size players. No player has achieved economies of scale and thus a new a new entrant with deep pockets can enter this industry and still be at a major cost
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attract the potential clients. The framework is responsible for generating the effectiveness of a given business. a) Threat of New Errant Fierce competition in a declining market sets high barriers to entry. Moreover high costs and imminent danger of lawsuits set the barrier even higher. The higher the barrier to entry in the competitive market‚ the more it becomes harder for new companies to be formed providing similar products and services. b) Threat of Substitution If there exist some competitors within
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ISSUE IDENTIFICATION The issues surrounding Holey Soles include • The inability to have a high market share due to dominance from Crocs. • How to reach the goal of $40 million revenue while deciding upon expansion. But the current impending issue is how to reach the goal of $40 million by 2009. THE INJECTION MOLDED FOOTWEAR INDUSTRY ANALYSIS Strengths • Fast growing company. • Focused on innovative lifestyle products. • Unique SoleTek and Smartcell foam technologies. • Competitive pricing
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Lecture 5 External Environment Parts of these slides are material developed and copyrighted by Johnson‚ Scholes & Whittington (2006) and Lynch (2006) Sustainable Competitive Advantage • One of the main purposes of analysing competitors is to explore where and how sustainable competitive advantage (SCA) can be generated • Public service and not-for-profit organisations may also wish to explore SCA as they may be in competition for finance from external bodies • SCA will probably require
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Formulas: BDI: CDI: Chi Square: (o-e)2/e (answer>chi 2 given= significant) Formulas: BDI: CDI: Chi Square: (o-e)2/e (answer>chi 2 given= significant) Economic Value: Price of Substitute + Cost saving for the customer during the same time+ Revenue increase for the customer during the same time Break Even Quantity= FC /(P - VC) Break Even Revenue=FC/[(R-COGS)/ R] PED=% Change in Quantity demanded/% Change in Price CPM= cost/(% watching x
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is not perfectly elastic‚ the firm has price control over its pricing policy. There is a great fear of rivals’ reactions to each respective firm’s pricing strategies due to petrol being undifferentiated. There are also huge barriers to entry in an oligopoly. These barriers can be both natural and artificial. The few dominant firms in the oligopoly enjoy substantial internal economies of scale as they are operating on a larger scale‚ allowing the cost of the firm to fall continuously over a very
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