Case 2 The Movie Industry in 2008 YU-TING‚ TSAI Do you like Movies? If I am the person to answer the question‚ I would definitely say yes. The reason why people like movies is that I can have a couple hours off without any other thoughts in mind. I really feel relax when I’m watching a movie. However‚ in the case it calls the movie industry was a study in contradiction. In the case it listed out few points. First‚ the numbers of theaters is declining‚ but the number of screens is at an all-time
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Case 5 - Forbes Marshall 1. Why did FM engage in alliances instead of acquisitions? Does their practice in alliance represent alliance management capabilities? An alliance is an approach which allows two companies to pool their resources together together to form a combined force in the marketplace. By engaging in alliances FM was able to retain their individual entity but compete against competitors as a larger‚ unified business force with the alliance. An acquisition would see FM absorbing
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The positioning should be apparent in every aspect of the organisation‚ such as the brand‚ copy‚ imagery and user experience. Ideally the USP and positioning combined will create some competitive protection and create pure barriers to entry‚ or at least strong impure barriers (Sullivan and Sheffrin‚ 2003). Scope for growth The business must have scope and
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1. Porters 5 forces Analysis: 1.1 Buyer power: The buyers for mining industry usually have medium to high power. There are two elements that could affect the buyer’s power. One is buyer’s level of negotiation; the other is buyer’s price sensitivity. In our case‚ the two companies are producing coal and uranium. These two products are mainly used for producing electricity. Buyers for these natural resources must have large quantity of demand‚ and also they usually have government behind
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Tucker (2009‚178) believes that the most significant barrier to entry in an oligopoly is economies of scale. Economies of scale generally refer to the cost advantages that will be associated with large organizations. Margaretta (2012‚26) suggests that companies pursue economies of scale in the belief that this will be decisive in determining a competitive advantage and increased profitability. Woolworths enjoys significant economies of scale in relation to its competitors. In the supermarket industry
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from spontaneous‚ impulsive purchases. Fourthly‚ there are so many substitute in the market; such as beer‚ soft drink and confectionary product was grabbing ice cream’s market by heavily investing on advertisement. Lastly‚ there were almost no entry barriers‚ new regional producers rushed into the industry. With strong ambition to gain market share‚ the regional producers leveraged their cost advantage to compete with low price. Therefore‚ in 2001‚ the producing capacity already exceeded the market
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increase profitability. Entrants: Existing Concentrate Producers create high barriers to entry Despite low capital requirements to enter the market‚ dominant concentrate producers successfully restricted new entrants‚ capitalized on growing demand‚ and increased gross profits. 1) Dominant concentrate producers created strong brand equity and loyalty by spending heavily on advertising‚ which created high barriers to entry and kept entrants on the fringe. 2) Major concentrate producers established
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are a number of issues surrounding the launch of Mira. Harlequin made efficiency and certainty a part of their everyday business‚ in an industry where low profit margins and risky releases were the norm. Harlequin has been able to create high barriers to entry in the series market through the development of brand loyalty and excellence in product quality and supply chain management. In regards to Porter’s Five Forces‚ Harlequin can be analyzed as such. There is a possibility that other publishers
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and hence achieve superior returns. Consequently ‚ the task of formulating a winning strategy should always begin with an appraisal of the company’s external environment to identify strategic issues ( future threats and opportunities ‚ current barriers ) then addressing these strategic issues by matching firm’s strategies to the conditions ‚ characteristics and structure of its external environmental forces acting upon on it – Slide 1 This section presents the theories‚ analytical tools
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| | | |High exit barriers | | | |Fixed costs are relatively low | | | |Low switching costs for customers | |Threat of entry |High |Strict capital requirement with large-scale
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