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U.s. News And World Report
Recently U.S. News & World Report published an article explaining to consumers who care why
there must have iPhone is so costly lately. The reason is simple, there is a lack of competition in this
market. When a lack on competition exists in a market it allows large firms, like Apple, to set their
prices wherever they please (Soergel). A recent group of professors at Cornell University just did a
market survey and discovered "a systematic decline in the number of publically traded firms over
the last two decades." The article reports the number of publically traded companies in the United
States has decreased by 50% in only the last twenty years (Soergel). This decline in publically
traded companies means certain industries, if not all, ... Show more content on Helpwriting.net ...
Current research shows that it costs Apple $236 to produce and put together their 16 gig iPhone 6s
Plus and they are selling it on their website for a whopping $749 (Soergel). That means the company
is making over $500 in profits from just one phone! While it might baffle you that Apple is marking
up their prices to that extreme it's even more surprising when you realize that they legally aren't
doing anything wrong at all. The company is simply taking advantage of their low competition and
the fact that customers will pay large sums for these new phones (Soergel). Apple has proved to an
innovative leader throughout the past and now has the largest market share of any phone
manufacturer both in the United States and China (Soergel). Lessening competition and rising prices
have led many people to question when government regulators will intervene if at all. During the
past few years regulators have been scrutinized for their lack of involvement. In the recent past
multiple large mega–mergers have been approved even though these type of mergers have and
continue to lead to freedom to charge whatever those companies want to (Soergel). Antitrust laws
work to regulate these markets and keep them from turning into full fledge monopolies. The
Sherman Act was established in 1890 and made it illegal to restrict interstate trade by any means and
outlawed attempting to monopolize. The Clayton Act which was established in 1914 outlawed
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Global market entry strategies are complex requiring...
Global market entry strategies are complex requiring consideration of many factors (Chen &
Mujtaba, 2007, p. 322). Many of the complex option decisions are covered in the following two
articles. Both articles list numerous factors that influence firms' decisions for selecting foreign
market entry modes. This essay will discuss the findings of two articles and highlight how the two
articles relate to one another. The two articles were chosen from the Argosy online Library at
ProQuest Central. After careful consideration for the contents and the overall coverage of the subject
matter, the following two articles were found to be most suitable: 1) Competitive Market Choice
Strategies in Multinational Marketing and 2) The Choice of Entry ... Show more content on
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73)
2. Competitive posture is the second dimension. The competitive posture describes the firm's
competitive objectives as either defensive or offensive. The defensive posture prevents competitors
from making present or future inroads on its market share. The offensive posture is where the firm
seeks to grow at the competitors' expense (Ayal & Zif, 2001, p. 73)
3. The third and final dimension is–Territorial location of major competitive arena. To understand
this dimension, the authors divided the world markets into three regions vis–à–vis any competitor
assuming that the firm's strengths are different from the competitors'.
a. The firms home market
b. Neutral territories
c. Competitors' home market (Ayal & Zif, 2001, p. 75)
Within these dimensions the firm has to consider two major sets of inputs to process. They include
an assessment of company resources–both absolute and relative to competition and a product/market
analysis to determine whether a strategy of concentration or diversification is indicated based on a
list of ten factors that is used to help the firm make a decision (Ayal & Zif, 2001, p. 75) The ten
product/market factors are rated high or low for either the
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Free Trade: America Should NOT Protect Industries from...
Free Trade: America Should NOT Protect Industries from Foreign Competition
Many politicians oppose free international trade, trade without any restrictions, for a couple of
reasons. From their point of view it would affect the United States in several ways:
1. Many USA workers would lose their jobs because factories would be moved to the country with
whom the U.S. has a Free Trade Agreement, and where working force is much cheaper.
2. Importing foreign goods and services without tariff into the United States makes it harder for
domestic industries to compete with lower prices and better quality of foreign competition.
3. Some politicians feel that it is not the right decision to have ... Show more content on
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The United States' strong economic performance is due in part by trade and investment
liberalization resulting from the Uruguay Agreement and the North America Free Trade Agreement
(NAFTA). The openness and freedom of the economy has contributed to improving the
competitiveness of the U.S. producers, creating more and better paid jobs, which in turn raised labor
standards and reduced poverty. At the end of 1998 the unemployment rate fell to 4.5% and consumer
price inflation to 1.6%, which is the lowest level since the 1960. This outstanding macroeconomic
performance has been greatly followed by a large and growing current account deficit, which in
1998 reached a record level of $223 billion (2.7% of GDP). The trade deficit has enabled the U.S.
economy to keep up with its strong rate of growth.
Open economy brings imports, which are often at a lower price, and they help to satisfy domestic
demand. They have also contributed to lower domestic prices and wider choice for the U.S.
consumers. The U.S. producers have benefited from lower costs and wider choice of input, too. It
increased their competitiveness, resulting in more jobs and higher wages. Imports have helped with
inflation pressure that might otherwise have emerged as a result of the very strong growth of
domestic demand and low unemployment rate, thereby supporting low market interest rates.
An additional source of funds for
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BSC: Coffee War Essay
Ina Song MKTG490/12­
2PM 4/13/15 Issues Café Coffee Day As a well­
known national coffee brand
in India, CCD was India's leading coffee chain in 2013 with over 60% of the market. However in the
same year, Starbucks ­the world's largest coffee chain company, opened its first 11 stores in Mumbai
and Delhi. CCD has been watching closely with this big competitor entering the market, and the
management team was not surprised by Starbucks' initial success in its first six months of operation.
The few issues that CCD is facing with Starbucks entering the Indian market are: shifting
consuming patterns, lack of customer service, and direct competition. While Starbucks is 50% more
expensive than CCD in India and concentrating on ... Show more content on Helpwriting.net ...
Starbucks As a foreign brand expanding into Indian market, Starbucks has a few advantages with its
international appeal. However, in the long­
run, Starbucks is also facing many challenges. Some of
the foreseeable challenges include: local competition reaction, limited real estate, and consumer
changes. When Starbucks entered the Indian market, it was well equipped with years of research and
its successful experience in foreign markets. Starbucks had many advantages when it first entered
the Indian market, and those advantages were reflected through the mass media coverage and long
queues outside its new stores. However, local competitors like CCD have been watching closely
with Starbucks' every move. Once those competitors learn Starbucks' market strategies and figure
out how they should change in the new market climate, they would start changing their own
strategies to react to Starbucks' success. As an example, CCD had already realized its shortage on
customer service when comparing to Starbucks, and it's mostly likely going to improve on that
aspect. Limited real estate is another potential issue that Starbucks is facing. Because its late entry to
the market, most high street locations are already taken by other competitors. Even though
Starbucks was offered to be an anchor tenant at lower rents at some malls and prime locations, but in
the long­
run Starbucks would still face the
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Customer Analysis: Sony: SWOT Analysis Of Sony
SWOT
Strengths
Sony is successfull in acquiring licenses and patents for building strategic partnerships and business
development. Sony is licensed to use not only local Japanese patents; in fact, Sony is even more
successfull in obtaining licenses to use international (foreign) patents. Another interesting point is
that Sony can still use some other patents even without legally owning them.
Reputation of brand name and corporate image. Sony is a globally well–known brand name and it is
illogical to question the top quality of the products and services. Regarding the products, I always
found the functionality and design very appealing. Regarding the services, Sony is famous for its
post–purchase services. Contacts are always kept with every client and warranty are available for
products sold. Finally, Sony works hard to support customer information centers in its biggest
markets.
As a global brand, Sony is very successfull in expanding its business network and already covers
more than 200 countries.
Finally, Sony has an effective supplier management system. The corporation has ... Show more
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Nowadays, it takes just a few minutes for a customer to make research and evaluate competitors.
Customer reviews provide others with valuable insights. The point here is that this decreases
switching (transaction) costs for customers to switch from Sony to Apple, for example, and vice
versa. As it was mentioned earlier, customers are sensitive to prices and price elasticity of demand is
high. The most important thing that matters to customers is price, not quality, because all of big
players offer very similar products in terms of design and functionality. More customers prefer
buying online, and this pushes down switching (transaction) costs even further. To summarize,
buyers have the power to influence Sony directly because they can easily switch to competitors; but
also indirectly, through exchange rates, as Sony is all about international
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Portel's Five Forces Model Telecom Industry
Portel's five force model According to Porter, the origin of profitability is identical regardless of
industry. In that light, industry structure is what ultimately drives competition and profitability –not
whether an industry produces a product or service, is emerging or mature, high–tech or low–tech,
regulated or unregulated. Conventionally, the tool is used to identify whether a new products,
services or businesses have potential to be profitable. However it can be very illuminating when
used to understanding the balance of power in other situations. Understanding the Five Forces
Model for Idea telecom industry: Competitive rivalry: This force examines how telecom industry
intense the competition currently is in the marketplace, which is determined by the ... Show more
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Under protective covering faces intense for telecom industry competition from different players of
brazil like TIM, Claro and other local brand. Claro and TIM, which have considerably larger
resources and covered market in brazil, are making a play within the performance apparel market to
gain market share in this up–and–coming idea new product category. Bargaining power of suppliers:
This force analyzes helps to how much power a business's supplier of telecom industries has and
how much control it has over the potential to raise telecom product prices, which, in turn, would
lower a telecom industry business's profitability. A diverse supplier base limits bargaining power. In
2012, under protective covering telecom products were produced by 27 manufacturers located
across 14 countries. Of these, the top 10 accounted for 49 percent of the products manufactured.
Bargaining power of
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Porter's Five Forces Model
3. Please apply Porter's Five Forces model to the steel industry. propose whether you think the steel
industry is attractive industry or not an attractive industry.
The first force is competition in the industry and competition between firms in the steel industry is
very high. There is intense competition at both the domestic and global level. In order for a firm to
be profitable in the steel making industry, production levels need to be high, capacity levels need to
be high, and workers have to use resources and inputs efficiently. Price and demand contribute to the
high level of competition in the industry. There is a relatively weak demand for steel products in the
U.S. when compared to years prior to the recession of 2008. There ... Show more content on
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357). China is a primary source of competition on the global level but there are also two major
competitors in the U.S. – ArcelorMittal USA and U.S. Steel. According to the text, "Consolidation
of the industry into a smaller number of larger and more efficient steel producers had heightened
competitive pressures for Nucor and most other steelmakers," both ArcelorMittal and U.S. Steel are
large companies and have their own competitive advantages and disadvantages when compared to
Nucor (p. 359). The relatively small number of firms competing domestically and unfair trade
practices abroad has created an intensely competitive environment in the industry. Each force has a
high ability to impact profitability.
The potential threat of new entrants in the industry is a low threat. The most significant barrier to
entry into the industry is the enormous capital requirement needed to build or purchase production
plants. There are also various regulations imposed by the government (in the U.S. at least) in terms
of environmental regulations, labor regulations for an industry with jobs that are potentially
hazardous among other regulations the government imposes on firms in the industry. There is also a
learning curve to producing steel products and meeting specific requirements of customers so a new
entrant would either have to pay
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MKC1 Sample quiz 1 answers
1. Advertising can break through perceptual screens with all of the following examples except:
A. Closure
B. Subliminal ads
C. Blogs and electronic bulletins
D. Virtual reality
2. The personal determinants of consumer behavior include the:
A. Culture in which a person is raise
B. Individual's needs and motives
C. Family to which one belongs
D. Society from which one comes
3. To be effective, market segmentation must meet which of the following basic requirements?
A. The firm must avoid focusing on non–variables, such as profitability and volume
B. The market segment must have measurable purchasing power and size
C. The company must expand beyond its marketing capabilities to capture growing markets
D. The market segment must reflect the ... Show more content on Helpwriting.net ...
Indirect competition because they are all in the fast food business
18. Alliances are considered essential in a country where:
A. Partnerships with local firms provided regional expertise for a company expanding its operations
abroad
B. Laws required foreign firms doing business there to work with local companies
C. The partners combine resources and capital to create competitive advantages in a new market
D. Efforts are required to achieve organizational objectives by predicting and influencing the
competitive and political–legal environments
19. Which of the following has ended total monopoly protection for most utilities like natural gas,
electricity, water, and cable TV service?
A. Deregulation movement
B. Oligopoly
C. Temporary monopoly
D. Antitrust remedies
20. Marketers must constantly monitor their competitor's products, prices, distribution, and
promotional efforts because the:
A. Competitors may be violating the truth–in–advertizing laws
B. Actions of competitors may threaten the firm's monopoly position
C. Actions of competitors may create an oligopoly within an industry
D. New products offerings by a competitor may require adjustments to one or more components of
the firm's marketing mix
21. In which industry might there still remain a monopoly in certain geographic locations?
A. Cell phone provider
B. Cable TV provider
C. Supermarket
D. Dentist
22. Monopoly in the competitive environment:
A. Is enjoyed by
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Opportunities At Amazon
Opportunities are meant to take advantage of once being noticed. Like how Amazon took notice of
its data in the early 2000's, it needs to take notice of other opportunities that are laid before them.
The opportunities that they should continue to focus would be growth prospects e–commerce and
strategic acquisitions. Growth prospects e–commerce E–commerce has continued to be a business
trend and it continued to grow in 2015. According to the data the Stefany Zaroban got from the U.S.
Commerce Department, the web sales in 2015 totaled "$341.7 billion for the year, a 14.6% increase
over 2014's $298.3 billion" (Zaroban, 2016). This reveals that Amazon would continue to have the
chance to increase their sales as well as an increase to bringing in more customers. According to the
data that GlobalData received, U.S. had around "300 million internet users in the year 2014 which
was an increase of 7% over the previous years" (GlobalData). These statistics show that with the
increase of online shoppers every year and the definite advance in technology in the future, more
people will shop online than to go to retail stores. Strategic Acquisitions According to Amazon's
history and timeline, they were able to add features to Amazon every year. Like in 2014 of
December, they were able to add a one–hour delivery for prime members, add in HBO GO on
Amazon Fire TV, Ultra HD Movies and TV Shows on Amazon Instant Video, included in a 'Make an
Offer' for customers, and much more throughout
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Ben & Jerry 's : Japan
Michael Helie, Unit Three Case Study, Ben & Jerry's – Japan
Ben and Jerry's a well–known American ice cream producer with a history of great tasting ice cream
and a strong sense of social responsibility. Their published mission statement is broken into three
parts, product mission, economic mission and social mission (Ben & Jerry's). The company places
social responsibility as a high priority and a strategic leg of their mission statement. In part, their
statement recognizes, "the central role that business plays in society b initiating innovative ways to
improve the quality of life locally, nationally and internationally" (Ben and Jerry's, Mission). The
company's emphasis on social responsibility is evidenced through many social and charitable
contributions and actions the company has established. Founded in 1978 by Ben Cohen and Jerry
Greenfield, the Ben and Jerry's Homemande Holdings Inc. enjoyed rapid growth in popularity,
product brand recognition and financial gains. Due to declining sales in the United States, and with
some notable success in foreign markets such as Canada, Russia and the United Kingdom, Ben and
Jerry decided to look at entering the Japanese Ice Cream market. This market was very attractive
because as it is only second to the United States in the amount of ice cream consumed annually.
However the Japanese ice cream market was dominated by the HaagenDaz Company (Case Study).
Due to HaagenDaz size and global sales success, it would not be an easy
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Taking a Look at Marico Egypt
Competition review: There are many competitors in this product category that will compete with the
company's product by 2050 and may threaten the product's process and use this technology before
the company. One of these competitors is Procter and gamble which has a high market share in
Egypt; 67% of Procter and gamble business in Near East markets; Egypt, Lebanon, Jordan and Iraq.
They took the 12 original–million–pound investment to the present amount of 1.25 billion Egyptian
pounds. The development of Procter and gamble and its production level have been enormous; the
company today supervises a portfolio of 14 brands. Procter and gamble have some strengths and
weaknesses, the strengths they have is that they have over 300 brands all over the world which are
existing in 180 countries, over than 125000 employees in P&G all over the world, it has 24 brands
which have sales every year over the billion dollars, due to outstanding marketing and advertising
their brands have high recall and finally they participated in important sporting events as sponsors.
There are also some weaknesses and one of them is that many false products are on sale under their
brand names, also their products have a high competition from international brands. There is also
another competitor that will compete with the company on this product which is Marico Egypt and
its market share is also high in Egypt; Marico's launched in Egypt in 2006–07, when it obtained the
local hair care
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The Motorcycle Industry 's External Environment
The major driving forces in the motorcycle industry's external environment includes; growth rate
changes in the industry. Two, there is change in the buyers of motor cycles and how they use it. In
the recent years motor cycles have been associated with robbery and drug trafficking. Three is the
marketing innovation. The motor cycle industry is yet to fully embrace the new internet technology.
Four, there has been numerous entry of major firms that have brought imbalanced competition in the
industry (Raman, 2004). Five, lack of enough technical knowhow has made many people to either
fear the motor cycle or to have wrong information about them. Globalization and increased
efficiency and cost change is another reason for driving forces for ... Show more content on
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This means if one of them drops the price, it affects all the other competitors. Due to this high
competition, this industry may suffer low returns. Competitive rivalry also leads to slowly growing
revenue and increased production costs.
Supplier's bargaining power: Most of the motorcycle suppliers depend on a single or two makers to
purchase most of their products. This can cause great loss to a supplier if a buyer decides to switch
to another supplier. This leads o the suppliers being too susceptible to demands hence they hold little
authority.
Buyer's bargaining power: Consumers don't posses much bargaining power. This is because they
only to buy in many case a single motor cycle at a time. They have also opted to buy their motor
cycles from foreign countries, because they are not satisfied with the local products.
Three statistics about the size of the motorcycle industry such as revenue, growth rate, number of
units sold by manufacturer/country,
The recent global motor cycle industry statistics indicates that the industry was worth 84.5 billion
dollars in the year 2014. According to market line, since 2010 the industry has not recorded any
increased growth. Nevertheless, there is expectation that this growth will increase by 6 % in the next
five years hence reaching a worth of
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The Bargaining Power of Buyers in the Aerospace & Defense...
Kelly Mann ECN 2020–84250 Competitive Forces Paper December 6, 2010 The Bargaining Power
of Buyers in the Aerospace & Defense Industry The United States aerospace and defense
industry is the largest of its type in the world. In 2009, United Press International, Inc. reports the
aerospace and defense industry achieved a record $700 billion in spending. The defense market has
experienced significant economic growth over the last decade due to large U.S. security spending in
hopes to impact or end the global war on terrorism. The 9/11 attacks on the U.S. increased demand
in the defense market while causing a decline in the airline industry. Airlines have suffered due to
new security guidelines and a downturn in the ... Show more content on Helpwriting.net ...
Zakheim and Kadish explain two decades ago, there were more than twenty prime contractors
competing for defense contracts while today the government relies on just six contractors to build its
defense systems. Zakheim and Kadish state, "The system largely forgoes competition on price,
delivery and performance and replaces it with a kind of "design bureau" competition". The report
explains that firms such as Boeing and Lockheed Martin have operated in collaboration on several
projects such as the Air Force's next generation bomber (Zakheim & Kadish, 2008).
Collaboration of this nature suggests cooperative equilibrium between the firms to enhance their
mutual payoff of outbidding competitors. With the defense market on the downturn pending major
budget cuts over the next several years, more collaboration strategies are possible for firms to
remain competitive. The existing procurement system encourages bargaining among the government
and bidding firms. When budgets are allocated generously, demand is high and firms can set their
prices higher. Budget cuts decrease demand and increase bargaining between buyer and seller.
Security Industry reports budget deficits subject contracts to greater 3|Page scrutiny and tougher
negotiations making contracts more difficult to obtain in the coming years (Security Industry, 2010).
Defense firms are at the mercy of the defense budget. In times when the budget is maximized and
demand increases,
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Marketing Analysis Of Zappos.com Owns A Stable Source Of...
1 – Executive Summary
Zappos.com owns a consistent share of shoe buyers' market and maintain a solid and prominent
position in online retailing. Although the numbers suggest that the company serves the US market
like no other company, an expansion of its current share should be considered. Even thou the
investments that this would require, we agree that Zappos could expand and build a stable source of
competitive advantage by producing its own shoes line, followed in the future by it's own shoe
related wear line.
The main issue regarding the expansion of online market and the low barrier at the entrance that
characterize the e–business is that many other shoe resellers and low cost companies accessed the
market, raising the level of competition. As cited on the provided case, an increasing number of
users gets to Zappos by using referral provided by Google, right after having compared the prices of
the online shops for the same article. At the same time, Zappos has few possibilities to low down the
prices over a certain point, has it has to buy from Nike, Adidas, and all branded producers that
impose most of the price. In the final retail price Zappos has to include the high costs on customer
service, shipping and overall experience; all these factors combine and most of the time exceed the
prices offered by low cost resellers, which give up the quality of the service in order to be able to
offer low prices.
Having a self made shoe line would be a solution for both of
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Major Forces That Are Leading International Firms Essay
There are five major forces that are leading international firms to the globalization of their
operations which includes (1) political (2) technological (3) market (4) cost and (5) competition.
Many firms initiate international operations to gain assess by combined markets through exporting
product or producing within the area.
Technological
According to (Ball, 2011) today's technology has allowed an advance in computers, communication
and an increase flow of ideas. Through the internet and networks small companies can compete
globally.
Markets
Companies use foreign countries to establish a business to avoid having their competition take their
business. With the majority of the population being in foreign countries, outsourcing helps to
generate growth.
Cost
Management utilizes lower cost by moving production lines to foreign countries because the labor is
cheaper, and can also lower other parts of a company value chain. There is a reduction in the cost of
generating and transmitting information as well as a decline in transportation cost.
Competition
Competition is increasing because of growth in automobiles, computers, and electronics. Firms are
also defending their home markets from foreign competitors by entering into foreign markets.
There are a number of reasons why a manager may not be able to successfully apply the specific
techniques and concepts learned in his/ her country in other areas of the world. Each country has its
own values, cultures and ethical
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The For Efficient Distribution Of The European Commission...
1) Briefly summarise the main points of the case
Verboven's (2009) discusses vertical restraints, concluding their necessity for efficient distribution,
discussing how the European Commission has altered its interpretation of Article 81 overtime. Three
types of restraint are highlighted: Selective distribution, Exclusive distribution and Exclusive
dealing, and that restraint adoption depended on current levels of regulation. Verboven (2009)
explains that vertical restraints became subjected to EU Competition Laws and due to 'cumulative
anti–competitive effects ' were reformed, becoming stricter. By 2002, new block exemptions aimed
to increase flexibility on acceptable agreements and that only Selective or Exclusive distribution can
be applied, not both. Black clauses including Retail Price Maintenance (RPM) and passive selling
outside of territories were listed. Nevertheless, post–2002 manufacturers were now allowed to make
certain vertical agreements (excluding black clauses), assuring their market share was within the
newly defined thresholds (in general 30%).
Overall, Verboven (2009) emphasised three main issues. Firstly, double marginalisation occurring
when both manufacturer and dealer apply separate profit incentivised mark–ups. Secondly, vertical
externalities result in dealers having no incentive to provide sale and after–sale services, as the
dealer ultimately provides the manufacturer with increased profits. Finally, competing dealerships
may freeride on
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Major Factors That Contributed To Xiaomi Become A Leading...
What are the major factors that contributed to Xiaomi becoming a leading smartphone company in
the PRC?
Xiaomi was growing rapidly in the last five years in which it has become the world's third largest
smartphone company. Xiaomi has a great understanding of its customers and the market; therefore,
it was able to attract many customers and create high quality products. One of the major factors that
contributed to Xiaomi's success was the mobile internet and e–commerce strategies. Xiaomi grew
into a mobile internet and e–commerce company that contract–manufactures smartphones and
compatible devices designed to offer a complete customer experience. The second major factor was
Xiaomi's world–class team. Xiaomi contained a world–class team of Chinese executives and one
prominent western executive, with collective experience at top foreign IT firms like Google,
Microsoft, Motorola, and Yahoo. Its executive team complemented Lei Jun, Xiaomi's driven founder
and CEO, and brought attributed that Lei Jun lacked. Furthermore, the last major factor was
Xiaomi's manufacturing model, which is based on customer demand. In other words, when Xiaomi's
customers place their orders ... Show more content on Helpwriting.net ...
For instance, at the beginning, Apple and Samsung were only focused on competing with each other,
caused the outburst of Xiaomi. Therefore, Xiaomi should not allow similar things to happen or
create threats. Also, Xiaomi should not only focus on competing with the local Chinese rivals
because that may causes the loss of market share due to the growth of the industry giants. The best
strategy for Xiaomi is to balance its competition with the industry giants and the local rivals.
Meanwhile, Xiaomi needs to listen to the market and fulfill the customers' expectations. Xiaomi also
needs to be aware of all the companies, threats, and opportunities to ensure its
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Competitive Forces : The Competitive Force
Competitive Forces. The competitive force is a system to understand an industry by examining the
interactions among competitors in an industry or non–profit sector: potential new entrants, substitute
offerings, suppliers, and buyers to the non–profit sector (Ketchen & Short, 2015, Section 3.1). To
help analyze the forces a professor by the name Michael Porter developed a popular analytical tool
used in the business world to identify how much profit potential exists in an industry (Ketchen &
Short, 2015 Section 3.1). In Figure #: Competitive Five Forces, is a model for the analytical tool that
reveals the component of the threat of new entrants, threat of substitutes, bargaining power of
suppliers and buyers, and rivalry are rated on a scale of low–to–high to show the impact of the
competition within the warm water therapy industry is and how KAA functions in the industry.
Threat of New Entrants. New entrants into the industry are firms that do not currently compete in
the industry but may in the future (Ketchen & Short, 2015, Section 3.3). New entrants have a
tendency to reduce potential profits of an industry by increasing the competitiveness, which could
reduce the quantity of clients that organizations rely on to visit its operation. According to Ketchen
and Short new entrants can be "start–up" companies created by entrepreneurs, foreign firms that
decide to enter a new geographic area, supplier firms that choose to enter their customers; business,
or buyers firms that
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A Brief Note On The Italian Shoe Industry Essay
2.Demand conditions If the local market for a product is larger and more demanding at home than in
foreign markets, local firms potentially put more emphasis on improvements than foreign
companies. This will potentially increase the global competitiveness of local exporting companies. A
more demanding home market can thus be seen as a driver of growth, innovation and quality
improvements.
3.Related and Supporting Industries
When local supporting industries and suppliers are competitive, home country companies will
potentially get more cost efficient and receive more innovative parts and products. This will
potentially lead to greater competitiveness for national firms. For instance, the Italian shoe industry
benefits from a highly competent pool of related businesses and industries, which has strengthened
the competitiveness of the Italian shoe industry world–wide.
4.Firm Strategy, Structure, and Rivalry The structure and management systems of firms in different
countries can potentially affect competitiveness. By using Porter 's diamond, business leaders may
analyze which competitive factors may reside in their company 's home country, and which of these
factors may be exploited to gain global competitive advantages. Business leaders can also use the
Porter 's diamond model during a phase of internationalization, in which leaders may use the model
to analyze whether or not the home market factors support the process of internationalization, and
whether or not the
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Swot Analysis In Hotel
Technology Management
Assessment 2
Akash Gaur
706367
Diploma in Business (Level 7)
 SWOT Analysis for Existing Business
STRENGTHS:
Innovative Technology: They have smart cards to secure customer's rooms, online food order from
Hotel App.
Strategic Location: Situated in the heart of the Manukau city as all mainly tourist locations are near
like Takapuna beach, Northshore, Mission bay beach, Waiheke Island and many more.
WEAKNESSES:
Complex ownership structure: As this hotel is a partnership firm so if in future will have dispute
between partners, this can also be one the weaknesses.
Communication gap between Management: There can be communication gap between top level
management and lower level management and this can be one the main weaknesses of business.
They don't have Biometric device to calculate attendance automatically. OPPORTUNITIES:
Increasing employment: They are increasing the employment in a country.
Expansion into international market: They are also expanding hotel chains in international markets
because hotel industry is very big industry. THREATS:
Perfect Competition: As they are in an industry where there are many buyers and sellers with same
product and services and this could be one of the main threats to their business.
Terrorism: As we know terrorism is the main threats that world is facing right now and it can be
threat to them also.
Foreign competitors Entering local market: As it is perfect
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Walmart Case Analysis
Wal–Mart: A Case Analysis
Matthew Hoskins
LeTourneau University
Wal–Mart: A Case Analysis Wal–Mart, its headquarters located in Bentonville, Arkansas, is
currently the largest retailer offering different formats of stores to fit the needs of the neighborhoods
in which they are located. The company operates in several different countries: Argentina, Brazil,
Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico,
Nicaragua, Puerto Rico, and the UK. With all of these locations, Wal–Mart employees over 2
million employees. Wal–Mart recorded a bold $408,214 million in revenue for the year ending in
January 2010, an increase of .09% over 2009. Furthermore, Wal–Mart recorded an operating ...
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This takes away from Wal–Mart's earning potential if they are unable to acquire sales from new
markets (DATAMONITOR: Wal–Mart Stores, Inc. 2010).
Discussion
Although Wal–Mart cuts costs in every way the company thinks possible, being sparse with its
employee wages can create negative consequences. How much longer are employees working for
Wal–Mart going to accept their low wages and high insurance costs? This could create a shortage of
labor in the future. Furthermore, many people have worked for Wal–Mart and have left with a bad
taste for the company. Poor treatment of employees often causes their families to stop shopping with
the company as well. Many people have become disgusted with Wal–Mart over reports in the news
about treating their employees unfair while offering them little pay. Vendors who service Wal–Mart
also receive ill treatment; the company tries to bully everyone in to doing things their way or not at
all. A company that markets to families has to maintain a good reputation in order to attract
customers. If Wal–Mart does not improve their image, business could suffer in the future. Soon,
Wal–Mart may not be able to find employees that will work for so little pay, forcing them to
increase its labor costs, which will then force its prices skyward. Furthermore, if Wal–Mart had a
more positive image, more customers would welcome their stores into their neighborhoods; this
would create an opportunity for more
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The Adoption Of Islamic Business Practices
The adoption of Islamic business practices by organizations: Why, How and what are the
performance outcomes
Organizations in most industries face increased competitive pressures from other organizations that
aim to satisfy customer demands. One of the most significant issues that face organizations today is
International competition in rapidly changing environment (Porter, 1986). Competition creates
diverse, new capabilities into an industry and more dynamic and uncertain competitive environment.
In industry the speed of technological developments might have changes due to increased
competition (Wiersema and Bowen, 2008). In most global industry the fast development of products
and process innovations has become very important in order to achieve competitive advantage
(Bettis and Hitt, 1995). The expectations of customers are increasing, and to meet the needs of the
customer, organizations are competing with each other. They are looking for ways they can get more
profits and market share. There are many factors to this increased competition, as technology and
globalization have shortened distances and consumers are now aware of more products and services
(Frésard and Valta, 2012). The world is changing rapidly and ways of doing business have also
changed. Globalization and technology have changed the way corporations do work and how they
treat their customers and employees. Globalization has also increased competition. Now standards
have changed, and organizations are
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Porter Five Forces
Nowadays, five forces by Michael Porter can be analyzed to when discussed about competition The
following are the forces of port services industry especially in Indonesia based on Porter five model
competition:
1. Threat of New Entrants – high
a. New entrants
Possibility of new entrants from more than 90 terminals operator licenses (BUP) as a consequence
of the new shipping regulation No. 17/2008, some are granted to new players, including foreign
investment, local governments and private companies
b. Entry barrier
Quite high due to high investment for port facilities
2. Rivalry Among Existing Companies – medium
a. Local competition, e.g. intra–port competition tbetween terminal operator at Tanjung Priok Port,
the other example is competition ... Show more content on Helpwriting.net ...
For Marketing Strategy using Porter five forced model by Michael Porter and Rethinking Marketing
by Michael Porter and Hermawan Kartajaya Besides all those theories, in this literature review also
make review to analyzed CRM, RFM, clustering method.
Indonesia is an archipelago that has the territorial waters of two–thirds of the total area. As one of
the largest State–owned Enterprise in the field of port services in Indonesia, IPC has very varied
customers. However, until now the IPC does not yet have a mapping of the customer, while the need
for a vital relationship with the customer to be able to retain current customers and also to attract
new market. Therefore, can do by customer profiling, the model used are RFM and K–Means
Clustering.
These days, ports are being integrated into worldwide logistics chain. The value of services provided
by regional ports increasingly transcends the interest of local users and benefits business and
communities located beyond regional and national borders. Shipping and logistic company have
forced to the port to adapt their need and
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Marketing Analysis Of Zappos.com Owns A Stable Source Of...
1 – Executive Summary
Zappos.com owns a consistent share of shoe buyers' market and maintain a solid and prominent
position in online retailing. Although the numbers suggest that the company serves the US market
like no other company, an expansion of its current share should be considered. Even thou the
investments that this would require, we agree that Zappos could expand and build a stable source of
competitive advantage by producing its own shoes line, followed in the future by it's own shoe
related wear line.
The main issue regarding the expansion of online market and the low barrier at the entrance that
characterize the e–business is that many other shoe resellers and low cost companies accessed the
market, raising the level of competition. As cited on the provided case, an increasing number of
users gets to Zappos by using referral provided by Google, right after having compared the prices of
the online shops for the same article. At the same time, Zappos has few possibilities to low down the
prices over a certain point, has it has to buy from Nike, Adidas, and all branded producers that
impose most of the price. In the final retail price Zappos has to include the high costs on customer
service, shipping and overall experience; all these factors combine and most of the time exceed the
prices offered by low cost resellers, which give up the quality of the service in order to be able to
offer low prices.
Having a self made shoe line would be a solution for both of
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Differences in Gillette's Old and New Advertisments Essays
In the novel Brave New World, Aldous Huxley portrays a futuristic world to the readers, enabling
them to compare the present society to the future culture. Similarly, by analyzing the ads of 1950's
and the 21st Century, we can compare the societies of the past and the present. The Gillette
Company was founded approximately a hundred years ago. The company has been making ads
through out the last century to popularize their products. By exploring these Gillette ads, we can
gather facts about the market system and consumer demands during the time periods where the ads
emerged. The Gillette ads from the 1950's to 2004 portray the declining competitiveness and
consumer growth of the expanding Gillette razor industry. After the World War ... Show more
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Although few other competitive companies exist, through the years Gillette has become so famous
and rigid that it is a household name now. Given this lack of competition, Gillette has the freewill to
do almost anything. Their ads now give more attention to the product system rather than focusing on
the market. The Gillette Mach3, a modern ad is very simple, and pictures the Gillette blade and
mentions its features (Mach 3 Shaving System). Although the ad is very simple in nature, Mach3 is
the most sold Gillette product. Thus, owing to low competition and the comfort and uniqueness of
the Gillette products, the demand is very high, regardless of the plain features of the ads. Though the
demands are high due to lower competition, the Gillette product pricing remains a controversy. The
1950s ads focused a lot on the cheapness of the blades and their ability to meet the expense of
everyman (Display Ad 71). J. P. Spang, Jr., the President of the Gillette Company in the 1950's had
said that they had focused on producing products that are available in quantity and quality, keeping
in mind to "sell it to the consumer at the lowest price consistent with a fair profit" (Spang 25).
Meanwhile, modern ads do not emphasize on the prices, as they know their products are expensive.
Due to their ongoing high demands, the company probably assumes that in the modern era, the
consumers do not get swayed away by higher prices as long as the product is being upgraded. This
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Competition From Foreign Producers On American Consumers
Competition from foreign producers affects American consumers in a number of ways. They affect
the way we, as Americans, pay taxes, the way we trade with other countries and the limitations of
that trade. These trade barriers protect us in order to keep specific industries of the United States
safe and to protect parts of our economy. Trade barriers include tariffs, quotas, and subsidies and are
a part of our economy because they are necessary for the success of our country. There has been a
dual view of trade since the time of the ancient Greeks. The two sides of these philosophers views
are the recognition of the benefits of international exchange, but that there is concern that certain
domestic industries would be harmed by foreign ... Show more content on Helpwriting.net ...
The policies that were developed in Western Europe took different forms. For example,
domestically, governments would provide capital to new industries, exempt new industries from
rules and taxes, establish monopolies over local and colonial markets, and grant titles and pensions
to successful producers (LaHaye, n.d.). Then, the government would assist local industry by
imposing tariffs, quotas, and prohibitions on imports of goods that competed with local
manufacturers (LaHaye, n.d.). A tariff is a tax on imports, while a quota is a legal restriction on the
amount of a good coming into the country (Guell, p. 204). The economic strength of the United
States provided the stability that permitted the world to leave behind the chaos of war and grow into
a new, more prosperous era (LaHaye, n.d.). This is when The Marshall Plan comes into play. The
Marshall Plan, also known as the European Recovery Program, channeled over $13 billion to
finance the economic recovery of Europe between 1948 and 1951 (Foner & Garraty, 2009). The
Marshall Plan successfully sparked economic recovery, meeting its objective of 'restoring the
confidence of the European people in the economic future of their own countries and of Europe as a
whole.' (Foner & Garraty, 2009). This coincided with the United States goals to rebuild devastated
war regions, to remove trade barriers, to
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The Influence of Government on Country Industries and the...
Government can actually influence the competitiveness of a country's industrial and commercial
sectors by using the competition law policy that apply to all economic agents such as commercial
supply of goods and services , production and financial resources. for example the case study from
automotive industry in India where the government was taking part in helping develop the
automotive industry by supporting fund to whoever can come up with the best research.
Government can also actually decrease the import barrier (import tax) to create the competition
between the foreign firm and domestic firm as well.
Most of the industrial in many countries was actually run by Entrepreneurships. And the main three
factor of running the production ... Show more content on Helpwriting.net ...
Because when small business Entrepreneur receive opportunity by information. Most of the time it
tends to increases the competition for these small firm entrepreneur who are running their business
by using one stop shop business model. Most of the time are reliable on the raw material price
information.Becaue One stop shop is actually run by provide the service in one shop, place and
single location that can actually provide the service to consumer in just one stop. Also government
can influence the competition in country industry's and commercial sector by open the direct access
of government information to public. For example like the announcement from the government
about the oil price that the oil price will drop. Moreover most of the automotive industry would
foresee this as the opportunity to increases their production, because the fact that government
announced the drop of oil price in long period. Which mean that there will increase of automotive
consumer due to the drop of oil price. And when the production is increase than the competition in
sale would automatically increase as well. Government can also influence the competition in the
country industry's by controlling the quotas from foreigner firm or domestic firm (From dictionary
Quotas = A Physical limitation on the import of certain goods into a
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Competitive Strategies and Government Policies Paper on...
Competitive Strategies and Government Policies Paper on Wal–Mart
ECO/365
University of Phoenix
Week 5, Learning Team Assignment
March 18, 2013
Management has recognized the effect of changes in the real–world competitive environment and
government policies on other industries and anticipates similar events occurring in their industry, so
they ask you for a report considering the following points. Write 1,400 – 1,750–word paper of no
more than in which you describe how each of the following are or potentially will affect your
industry or one with which you are familiar:
New companies entering the market, mergers, and globalization, on pricing and the sustainability of
profits: Identify the type of merger activity in your ... Show more content on Helpwriting.net ...
Wal–Mart continues to expand their brand name to maintain the iron fist hold on the market they
currently dominate. These generic brands allow Wal–Mart to cut prices and offer many goods lower
than their competitors. Wal–Mart has announced expanding its generic line by approximately 80
new products, boasting that the products are an average of 40% lower than popular brands. Wal–
Mart like other large retailers has to abide to tax laws and regulation set in place by the government.
Wal–Mart like any other company has regulations to follow such as the antitrust laws. Antitrust
policy is the government's policy toward the competitive process (). Where the government may
intervene is say if Wal–Mart was merging with a company, and it was taking a complete strong hold
on the market giving it the ability to fluctuate prices as high as may want to. Still being able to retain
consumers even at such a high price and they can do nothing about it. Antitrust regulation can
prevent a company like Wal–Mart from doing so. The specific law is the Sherman Antitrust Act of
1890 designed to regulate the competitive process. Wal–Mart biggest externality from opening a
store in a small town can undermine the town centers and replace them with commercial sprawl on
the outskirts of these towns (). If these externalities are a reason to limit Wal–Mart's aggressive
pricing policies is a debatable question (). An externality is the
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Business Strategy: Black And Decker
Black and Decker is a multinational corporation based in Baltimore Maryland, well known for its
production of consumer and professional power tools. The company sells its products in over 100
nations with a revenue of $5 billion, with operations in Canada and Britain. During its growth, the
company was decentralized and kept all of its businesses functions as close as possible to the market
to be served. During the 1950's and 1960's, Black and Decker's were using a Multicountry Strategy,
which is a strategic approach which fits each hosts market situation. During this time the company
established 23 wholly owned subsidiaries as well as two joint ventures in foreign markets. It had a
very strong brand image and not much competition as it owned a near monopoly share of the ...
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New companies entered the power tool industry, which lead to the company having to change its
strategy. Its main competitors were Bosch, Makita and Panasonic which posed a great threat to
Black and Decker's monopoly position in the market. During this time the company shifted towards
a rationalization strategy in which, the company increases its efficiency by, in this case, closing
factories and moving towards centralization. Black and Decker's centralized its Research and
Development and production. They were moved into fewer but more efficient locations.
Furthermore, rather than owning a 23 independent subsidiaries, the company changed into a
centralized organization. While globalization was still kept as a key part of the company's strategy,
Black & Decker was no longer as dominants which set it back in terms of company growth. By the
1990's the company faced new competition. Powerful retailers such as Home Depot and Lowe's
created great pressure on prices causing the company to get rid of more factories. Black & Decker's
factories competed amongst each other not to be shut
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Competition Is The Cornerstone Of Capitalism
Competition is the cornerstone of capitalism. It creates rivalry among businesses to produce quality
goods and services at competitive prices. This gives consumers a better sense of variety when
making purchases. Competition in its purest form creates small buyers and sellers none of which are
too large to negatively affect the market as a whole. Competitive markets can be dated back to
ancient times when merchants competed in foreign trade. In the 19th century economists considered
competition as a natural phenomenon in which growth of an operation was fueled by supply and
demand in a free market economy. They also believed that supply and demand worked better in a
laissez faire type environment. This was possible through freedom to trade, transparent knowledge
of market conditions, no government restrictions on trade, and access to buyers and sellers. These
conditions prevented any buyer or seller to significantly affect the market price of a single
commodity. After the mid 1800's, limitations to compete became evident during the industrial
revolution. Corporations achieved manufacturing capabilities that would surpass their competitors
and would allow them to fix prices and squeeze out their rivals. Eventually some businesses became
so large that they controlled enough market share to deceptively manipulate prices in their industry.
This activity created an atmosphere for President Theodore Roosevelt to launch his famous trust
busting campaigns. The era of antitrust
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Porter's Five Forces Tourism Industry
Porter's five forces analysis is a tool is useful for us to analyse the threat of competition in an
industry. Porter believed that the industries were influenced by five forces; competitive rivalry,
threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of
substitutes. Analysing these areas can allow you to see attractiveness of the market and find a
competitive advantage. Competitive Rivalry In this section we look at who are our competitors in
the same industry and how can we gain the large portion of the market share and profits. However, if
the level of competition becomes too high it can ultimately lead to a decrease in profits. There has
been an increase in the amount of competitors on the tourism industry over the last 10 years, with
the introduction of online sales and new airlines. For the tourism industry the level of competition
can be quite high as ... Show more content on Helpwriting.net ...
If their planes are high–class, then it is more likely that more people will benefit from their services,
and the same is with hotels. If they are nicely and functionally done, then their services will be of a
higher standard, and the company will gain new customers. The bargaining power of suppliers is
neither too high nor too low. Bargaining Power of Buyers This is where you are able to determine
the price with your suppliers. This can happen if there are a large amount of suppliers and you are
buying in bulk. This may force suppliers into a price war. The buyers of the services of travel
agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a
small degree of concentration, due to the wide range of services. Customers accustomed to a high
standard to remain faithful to their favourite agency even when the price increases, because the
well–known brand and the strong position in the market inspires
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Environmental Factors That Affect A Business 's Profit And...
The changes in structure and management that occurred this year mainly consist of Satoru
Matsuzaki taking over as president and representative director of Ryohin Keikaku, the parent
company of MUJI. This took place on May 20, 2015, followed with Matsuzaki assigning board
directors to be responsible for the operations and management of foreign divisions.
Business Environment
There are many environmental factors that can affect a business's profit and sale as a whole. To
prevent any unplanned occurrences from happening, franchises analyze the external as well as
internal factors in the surrounding environment to determine what must be done. The external
factors that may affect MUJI as a franchise include material and labour changes which ... Show
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These processes boast the fact of excluding excess packaging keeping it a minimum and being made
of recycled materials only. If ever a day occurs where MUJI decides to change these processes, the
brand image will completely change, thereby making it uncertain if the customer base will continue
to purchase from the business.
Another clear obstacle and vital factor is competition, which for this franchise range from household
product shops and apparel retailers. The direct competition includes stores like IKEA, Costco and
UNIQLO. All these business are successful worldwide, and continue to grow in consumers on a
daily basis. When establishing the MUJI franchise in its location, the franchisee must take into
account the surrounding stores which may pose a threat, and decide to make a few changes to stay
competitive.
Products and Services MUJI is a functional multi–product superstore that possesses an extensive
array of products ranging from apparel, accessories, stationery, house decor, health and beauty
supplies to snacking items. All of these items are of superior quality with minimal packaging.
Presently, there are around 7,000 items being sold in MUJI stores. The brand is also exemplary for
the use of mostly recycled materials, as a part of their CSR practices. As the brand's pricing slogan
states, "Lower priced for a reason.", which encompasses the fact that MUJI does not forget about
quality with it's
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Dahlia Case Study
OVERVIEW
1. Time Context
The problem has to be solved by the year 1985.
2. Viewpoint Mr. Chua Boon Kang and Mr. Leong Sim Lam
3. Major Policy Statement
Dahlia Furniture Private Limited is a local furniture industry, which supplies usually kitchen
cabinets, wall units, bedrooms set and dining set. It also has metal and wood furniture sets.
4. Background of the Case
a. The Company
Dahlia Furniture made its entrance into the furniture industry in 1972 as subcontractors to two large
furniture concerns, Ching Lin and Diethelm. It supplied mainly wall units and kitchen cabinets
while bedrooms sets and dining sets were subcontracted out or obtained from local suppliers.
Business went well and the company decided to branch into ... Show more content on
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Some of them are manufacturers while others are retailers who have their own showrooms. They
can be possible competitors of Dahlia. Other competitors comprise of foreign manufacturers and
retailers. Some of these are Ikea , Fly, Homestead and soon to operate Scandinavian, Italian,
Japanese and American manufacturers.
6. Present Company Departmental Plans
a. Product Planning Dahlia mainly supplies wall units and kitchen cabinets. It subcontracts local
suppliers of bedroom sets and dining sets.
b. Market Planning Dahlia Furniture advertises in Straights Times. In connection to its retailing
operations, Dahlia rented a showroom to a department store in Orchard area, in Bukit Timah area
and Upper Thompson area
c. Production Planning The purchase of Upper Thompson and Ang Mo Kio factories are sought to
increase the company's supply.
d. Manpower Planning Dahlia acquired two factories namely Ang Mo Kio and Upper Thompson.
The workers of these two factories were also hired. Staffs:
Sales person 11 persons
Clerical workers 4 persons
Production workers (Thompson Factory) 6 persons
e. Organizational Planning
Dahlia Furnitures is managed by Mr. Chua and Mr. Leong. Other staffs of the company are as
follows: Personnel Position
Chua Soo Lee General Administartion
Robert Lam Production and General
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Ice-Fili Case Analysis
Ice–Fili case analysis 1. Please provide an in–depth five forces analysis to illustrate the competitive
environment for Russia's ice cream industry. How is it likely to evolve?
Five forces analysis: 1) The bargaining power of suppliers * As some producers such as Ice–Fili
wanted to keep their product's quality level, they imported specific raw materials, but they didn't
have a problem in finding new suppliers. * As the technology of Russia was lagged behind
Western's, Ice cream producers needed to import most of their ice cream machines. The bargaining
power of suppliers for raw materials is low, while for facilities is high. 2) The bargaining power of
customers * There are various ice creams in Russia, so ... Show more content on Helpwriting.net ...
* The Russian economy is discouraging foreign investments, but the producers needed that money
to update technology, modernize infrastructure, develop marketing and packaging solutions, develop
dealer and distributor networks and so on. * The Russian financial crisis of 1998 resulted in a
financial collapse and devaluation of the ruble by 2/3. The domestic producers had to reduce their
reliance on imported materials and some foreign competitors exited the Russia market. 2) The fierce
competition in Russia * Regional producers, who has a significant cost advantage and are more
flexible To meet the market demand in regional areas, become more competitive. they accounted for
about 30% of domestic market, a few regional even exhibited aggressive growth in Moscow and
other metropolitan markets. * Foreign companies, such as Nestle, have a strong competitive
advantage. Nestle has a long–term investment strategy, use local production and supplier to reduce
cost, train and develop local staff who has a better understanding of the local market , and develop
its own storage facilities, distribution and marketing network.. In addition, Nestle develop product
that fit Russian taste and traditions. 3) The weakness of Ice–Fili * Cost disadvantage. High–price
raw material, as well as the ice cream equipment, which has to import from other countries; high
fixed
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Loloe And Hermes Case Study Essay
The supplier power: High
The supplier bargaining power depends on the importance of volume, level of supplier uniqueness
and threat of forward integration. The supplier's power is high in term of unique product, less
product differentiation and high threat of forwards integration, affecting their customer's ability to
acquire profitability (Porter, 1980). However, large firm like Chloe and Hermes international,
accrued the power and the capital to pose a threat for forward integration by owning their own
channel of distribution, giving opportunities to achieve high market share thus being strong
competitors for other suppliers. In contrast, for new entrants, as a result of the high fragmentation of
small scale suppliers, achieving economic ... Show more content on Helpwriting.net ...
Chloe is a maison (subsidiary) of Richemont SA. Apart from Chloe, there are other world's leading
luxury goods companies managed by Richemont like Cartier, Lancel, Alfred Dunhill, Montblanc to
name a few. Perhaps, that could be one of the most valuable resources Chloe enjoyed over
competitors. According to Geoffroy de La Bourdonnaye, the Chief Executive and creative director,
the company generates a return on investment by focusing on a core line of business and
competencies. Chloe engaged in a wide variety of product categories and continue to epitomize the
free spirit and values of femininity, modernity, effortlessness and grace. Due to the labor intensity in
the fashion industry, Chloe has made human its most important resources, i.e. the skills and
capabilities of the design and production teams, the logistic team, marketing team, store personnel
and other experts. Being part of Richemont's Maison, added value to Chloe brand. Andrew &
Frédéric (2015) report shows that Chloe capabilities gave it the privilege to establish strategic
alliances with other maisons which resulted in being able to produce successful, creative fashion
collections. Justifying that, the analysis of the driver of the performance postulates that fashion
collection made by a group affiliated brands with foreign experience will be three times more
creative than the collection made by the
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Antitrust Laws And Violations : Antitrust Law
Antitrust Laws and Violations Introduction Antitrust laws are to protect competition. The free and
open competition benefits that consumers have by ensuring that they have lower prices as well as
new and better products. In a freely competitive market, each competing business generally will try
to attract consumers by cutting its prices and increasing the quality of its products or services in
order to try to beat out there competitor. The competition and the profit gives the opportunities to
bring and also stimulate businesses to find new, innovative, and more efficient methods of
production. Consumers sometimes benefit from competition when there are lower prices and better
products and services (). The antitrust law is the law that ... Show more content on Helpwriting.net
...
These laws also oversee planned mergers and acquisitions that are adequately large to add up to a
threat to rivalry, and they take in hand commercial practices that can cause an uncertain threat to
competition on the merits in an appropriately defined antitrust marketplace (Clark, 2007). Main
Issues Competition is considered beneficial for business and business environment, as in a
competitive market, companies offer higher quality products at lower prices to be successful or to
gain market share. On the other hand, businesses perhaps get involve in violation of antitrust laws
that is a white collar crime as it has a bad effect on competition, can damage economy and can
increase prices. Antitrust laws are formed to protect consumer and competitors from unfair
competition and its consequences, these laws prohibits: conspiracies, combinations and contracts in
trade restraint, mergers, and acquisitions that tend to significantly reduce the competition offenses
and methods of unfair competition, as well as unfair practices and acts in the conduct of commerce
and trade (Kovacic et al, 2007). Competition serves as an effective mean for businesses to identify
ways to improve product quality, charge lower price, and to increase efficiency. Business that can
offer the highest product quality at the reduced costs will succeed in a
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Competitive Intelligence
The course lecturer will have argued that "strategy without intelligence isn't strategy, its guessing".
Some managers however take the view that a competitive strategy that is rigorously developed
around a strong set of product/service offerings, regardless of rivals intentions, plans, and actions,
will, in any event, 'win the day'. Your task is to defend, through evidence and argument one of these
two (or alternative) views.
1. Introduction
In the 1960s and 1970s, firms across the world faced little foreign competition from each other and
corporate strategy simply consisted of focusing on new product development to meet the increasing
demand from expanding middle classes. In recent times, world growth has slowed, ease of trade ...
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Whilst this practice of understanding what the competition is doing has been integrated into the
organisational culture of many leading companies today, competitive intelligence has come some
way. Its benefits were long understood in Germany as far back as the eighteenth century. By
scouting the European Continent, the Germans discovered they could compete with British and
French firms by applying foreign scientific adv ances to their own industrial processes. This allowed
them to develop their own base of education and research as a foundation for technological
innovation leading to the ownership of many international rights to formulae and processes,
particularly in che micals (Rouach and Santi
2001).
Japan was also an early pioneer in terms of grasping of the importance of competitive intelligence.
It opened up to external influences after two centuries of self –imposed seclusion after the American
invasion of 1854. Rulers in the decade that followed encouraged policies of community, nationalism
and modernisation with the intention of enabling Japan to compete with the West by absorbing the
latter's best practices (Rouach and Santi 2001).
Following the end of World War Two, Japan converted its military espionage capability into a
system of economic intelligence, for example, in the early 1950s, tens of thousands of market
researchers were sent around the world to assess the potential
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A Report On The Automotive Industry Essay
1. INTRODUCTION
The automotive industry in India is one of the largest automotive markets in the world, previously
one of the fastest growing markets globally. It started out as a small venture in the 1940s but
witnessed a rapid growth with the entry of some big manufacturers like Mahindra & Mahindra and
Maruti in mid and late 1900s. In 2000, this industry became an important sector of the Indian
economy and a major foreign exchange earner for the country.
The Shiv group was one of the largest industrial groups in India at this time established in the early
1900s. With the ownership of 20 companies and a turnover of US $1 billion, they were market
leaders in the sectors like tea, auto parts, electronics, finance, pharmaceuticals etc. In 2000, Shiv
industry was going through a rough phase experiencing a continuous loss. The key reasons were its
inability to cope up with the changing needs and competitive scenario due to internationalization of
this market. The challenges of quality based competition in high–tech product market and price
based competition in low–tech product market became a big concern for Shiv's management.
2. PROBLEM STATEMENT 1
Globalization of automotive industry
Although Shiv industries excelled in automobile industries, but the changing global trends in this
industry was a key concern for Shiv's management. Due to internationalization of this market, the
foreign auto manufacturers were rapidly replacing the local suppliers in terms of
... Get more on HelpWriting.net ...
Factors, Causes And Impact Of Administrative Monopoly
Impact of Administrative Monopoly
1. Introduction
Administrative monopoly is the behaviors that organizations use administrative power to restrict
competition. In most circumstances, regional administrative monopoly includes compulsory
administrative transactions, executive branch interference in business operations and abuse of a
dominant company administrative behavior (Schneider, 2009). Administrative monopoly includes;
using illegal means to override the executive division, block market for instance; foreign cars are
restricted to enter the city by legislative region; companies using monopoly privileges conferred by
the Government in order to increase barriers for competitors, reduce service levels, increase
products' price, and so on (Guo, & Hu, 2004).. The main representations are; to promulgate
regulations, circulars ... Show more content on Helpwriting.net ...
Causes of Administrative Monopoly
The increase of market competition is gradually growing up. However, due to historical reasons the
previous administrative system, official standard mechanisms of power began to seek a new
variation. Therefore, relying on the existing administrative monopoly power is not a very healthy
market mechanism to find new opportunities and operation model (Gottinger, 2013). The combined
causes of administrative monopoly include the following main points:
a. Government and enterprises associated together in a very long time, the government managed
enterprises, and companies also rely on the Government. When there is problem, the companies will
not deal with their own, but with the government which will pass government abuses in certainly
finding a proper excuse. Moreover, during the reformation, the government began to transform its
functions. However, the government authority to redefine the division of permissions and
government departments were unable to accurately grasp the people, which resulted in collision or
disconnect between one another thus resulting to administrative abuse of power (Gottinger,
... Get more on HelpWriting.net ...

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U.S. News And World Report

  • 1. U.s. News And World Report Recently U.S. News & World Report published an article explaining to consumers who care why there must have iPhone is so costly lately. The reason is simple, there is a lack of competition in this market. When a lack on competition exists in a market it allows large firms, like Apple, to set their prices wherever they please (Soergel). A recent group of professors at Cornell University just did a market survey and discovered "a systematic decline in the number of publically traded firms over the last two decades." The article reports the number of publically traded companies in the United States has decreased by 50% in only the last twenty years (Soergel). This decline in publically traded companies means certain industries, if not all, ... Show more content on Helpwriting.net ... Current research shows that it costs Apple $236 to produce and put together their 16 gig iPhone 6s Plus and they are selling it on their website for a whopping $749 (Soergel). That means the company is making over $500 in profits from just one phone! While it might baffle you that Apple is marking up their prices to that extreme it's even more surprising when you realize that they legally aren't doing anything wrong at all. The company is simply taking advantage of their low competition and the fact that customers will pay large sums for these new phones (Soergel). Apple has proved to an innovative leader throughout the past and now has the largest market share of any phone manufacturer both in the United States and China (Soergel). Lessening competition and rising prices have led many people to question when government regulators will intervene if at all. During the past few years regulators have been scrutinized for their lack of involvement. In the recent past multiple large mega–mergers have been approved even though these type of mergers have and continue to lead to freedom to charge whatever those companies want to (Soergel). Antitrust laws work to regulate these markets and keep them from turning into full fledge monopolies. The Sherman Act was established in 1890 and made it illegal to restrict interstate trade by any means and outlawed attempting to monopolize. The Clayton Act which was established in 1914 outlawed ... Get more on HelpWriting.net ...
  • 2.
  • 3. Global market entry strategies are complex requiring... Global market entry strategies are complex requiring consideration of many factors (Chen & Mujtaba, 2007, p. 322). Many of the complex option decisions are covered in the following two articles. Both articles list numerous factors that influence firms' decisions for selecting foreign market entry modes. This essay will discuss the findings of two articles and highlight how the two articles relate to one another. The two articles were chosen from the Argosy online Library at ProQuest Central. After careful consideration for the contents and the overall coverage of the subject matter, the following two articles were found to be most suitable: 1) Competitive Market Choice Strategies in Multinational Marketing and 2) The Choice of Entry ... Show more content on Helpwriting.net ... 73) 2. Competitive posture is the second dimension. The competitive posture describes the firm's competitive objectives as either defensive or offensive. The defensive posture prevents competitors from making present or future inroads on its market share. The offensive posture is where the firm seeks to grow at the competitors' expense (Ayal & Zif, 2001, p. 73) 3. The third and final dimension is–Territorial location of major competitive arena. To understand this dimension, the authors divided the world markets into three regions vis–à–vis any competitor assuming that the firm's strengths are different from the competitors'. a. The firms home market b. Neutral territories c. Competitors' home market (Ayal & Zif, 2001, p. 75) Within these dimensions the firm has to consider two major sets of inputs to process. They include an assessment of company resources–both absolute and relative to competition and a product/market analysis to determine whether a strategy of concentration or diversification is indicated based on a list of ten factors that is used to help the firm make a decision (Ayal & Zif, 2001, p. 75) The ten product/market factors are rated high or low for either the ... Get more on HelpWriting.net ...
  • 4.
  • 5. Free Trade: America Should NOT Protect Industries from... Free Trade: America Should NOT Protect Industries from Foreign Competition Many politicians oppose free international trade, trade without any restrictions, for a couple of reasons. From their point of view it would affect the United States in several ways: 1. Many USA workers would lose their jobs because factories would be moved to the country with whom the U.S. has a Free Trade Agreement, and where working force is much cheaper. 2. Importing foreign goods and services without tariff into the United States makes it harder for domestic industries to compete with lower prices and better quality of foreign competition. 3. Some politicians feel that it is not the right decision to have ... Show more content on Helpwriting.net ... The United States' strong economic performance is due in part by trade and investment liberalization resulting from the Uruguay Agreement and the North America Free Trade Agreement (NAFTA). The openness and freedom of the economy has contributed to improving the competitiveness of the U.S. producers, creating more and better paid jobs, which in turn raised labor standards and reduced poverty. At the end of 1998 the unemployment rate fell to 4.5% and consumer price inflation to 1.6%, which is the lowest level since the 1960. This outstanding macroeconomic performance has been greatly followed by a large and growing current account deficit, which in 1998 reached a record level of $223 billion (2.7% of GDP). The trade deficit has enabled the U.S. economy to keep up with its strong rate of growth. Open economy brings imports, which are often at a lower price, and they help to satisfy domestic demand. They have also contributed to lower domestic prices and wider choice for the U.S. consumers. The U.S. producers have benefited from lower costs and wider choice of input, too. It increased their competitiveness, resulting in more jobs and higher wages. Imports have helped with inflation pressure that might otherwise have emerged as a result of the very strong growth of domestic demand and low unemployment rate, thereby supporting low market interest rates. An additional source of funds for ... Get more on HelpWriting.net ...
  • 6.
  • 7. BSC: Coffee War Essay Ina Song MKTG490/12­ 2PM 4/13/15 Issues Café Coffee Day As a well­ known national coffee brand in India, CCD was India's leading coffee chain in 2013 with over 60% of the market. However in the same year, Starbucks ­the world's largest coffee chain company, opened its first 11 stores in Mumbai and Delhi. CCD has been watching closely with this big competitor entering the market, and the management team was not surprised by Starbucks' initial success in its first six months of operation. The few issues that CCD is facing with Starbucks entering the Indian market are: shifting consuming patterns, lack of customer service, and direct competition. While Starbucks is 50% more expensive than CCD in India and concentrating on ... Show more content on Helpwriting.net ... Starbucks As a foreign brand expanding into Indian market, Starbucks has a few advantages with its international appeal. However, in the long­ run, Starbucks is also facing many challenges. Some of the foreseeable challenges include: local competition reaction, limited real estate, and consumer changes. When Starbucks entered the Indian market, it was well equipped with years of research and its successful experience in foreign markets. Starbucks had many advantages when it first entered the Indian market, and those advantages were reflected through the mass media coverage and long queues outside its new stores. However, local competitors like CCD have been watching closely with Starbucks' every move. Once those competitors learn Starbucks' market strategies and figure out how they should change in the new market climate, they would start changing their own strategies to react to Starbucks' success. As an example, CCD had already realized its shortage on customer service when comparing to Starbucks, and it's mostly likely going to improve on that aspect. Limited real estate is another potential issue that Starbucks is facing. Because its late entry to the market, most high street locations are already taken by other competitors. Even though Starbucks was offered to be an anchor tenant at lower rents at some malls and prime locations, but in the long­ run Starbucks would still face the ... Get more on HelpWriting.net ...
  • 8.
  • 9. Customer Analysis: Sony: SWOT Analysis Of Sony SWOT Strengths Sony is successfull in acquiring licenses and patents for building strategic partnerships and business development. Sony is licensed to use not only local Japanese patents; in fact, Sony is even more successfull in obtaining licenses to use international (foreign) patents. Another interesting point is that Sony can still use some other patents even without legally owning them. Reputation of brand name and corporate image. Sony is a globally well–known brand name and it is illogical to question the top quality of the products and services. Regarding the products, I always found the functionality and design very appealing. Regarding the services, Sony is famous for its post–purchase services. Contacts are always kept with every client and warranty are available for products sold. Finally, Sony works hard to support customer information centers in its biggest markets. As a global brand, Sony is very successfull in expanding its business network and already covers more than 200 countries. Finally, Sony has an effective supplier management system. The corporation has ... Show more content on Helpwriting.net ... Nowadays, it takes just a few minutes for a customer to make research and evaluate competitors. Customer reviews provide others with valuable insights. The point here is that this decreases switching (transaction) costs for customers to switch from Sony to Apple, for example, and vice versa. As it was mentioned earlier, customers are sensitive to prices and price elasticity of demand is high. The most important thing that matters to customers is price, not quality, because all of big players offer very similar products in terms of design and functionality. More customers prefer buying online, and this pushes down switching (transaction) costs even further. To summarize, buyers have the power to influence Sony directly because they can easily switch to competitors; but also indirectly, through exchange rates, as Sony is all about international ... Get more on HelpWriting.net ...
  • 10.
  • 11. Portel's Five Forces Model Telecom Industry Portel's five force model According to Porter, the origin of profitability is identical regardless of industry. In that light, industry structure is what ultimately drives competition and profitability –not whether an industry produces a product or service, is emerging or mature, high–tech or low–tech, regulated or unregulated. Conventionally, the tool is used to identify whether a new products, services or businesses have potential to be profitable. However it can be very illuminating when used to understanding the balance of power in other situations. Understanding the Five Forces Model for Idea telecom industry: Competitive rivalry: This force examines how telecom industry intense the competition currently is in the marketplace, which is determined by the ... Show more content on Helpwriting.net ... Under protective covering faces intense for telecom industry competition from different players of brazil like TIM, Claro and other local brand. Claro and TIM, which have considerably larger resources and covered market in brazil, are making a play within the performance apparel market to gain market share in this up–and–coming idea new product category. Bargaining power of suppliers: This force analyzes helps to how much power a business's supplier of telecom industries has and how much control it has over the potential to raise telecom product prices, which, in turn, would lower a telecom industry business's profitability. A diverse supplier base limits bargaining power. In 2012, under protective covering telecom products were produced by 27 manufacturers located across 14 countries. Of these, the top 10 accounted for 49 percent of the products manufactured. Bargaining power of ... Get more on HelpWriting.net ...
  • 12.
  • 13. Porter's Five Forces Model 3. Please apply Porter's Five Forces model to the steel industry. propose whether you think the steel industry is attractive industry or not an attractive industry. The first force is competition in the industry and competition between firms in the steel industry is very high. There is intense competition at both the domestic and global level. In order for a firm to be profitable in the steel making industry, production levels need to be high, capacity levels need to be high, and workers have to use resources and inputs efficiently. Price and demand contribute to the high level of competition in the industry. There is a relatively weak demand for steel products in the U.S. when compared to years prior to the recession of 2008. There ... Show more content on Helpwriting.net ... 357). China is a primary source of competition on the global level but there are also two major competitors in the U.S. – ArcelorMittal USA and U.S. Steel. According to the text, "Consolidation of the industry into a smaller number of larger and more efficient steel producers had heightened competitive pressures for Nucor and most other steelmakers," both ArcelorMittal and U.S. Steel are large companies and have their own competitive advantages and disadvantages when compared to Nucor (p. 359). The relatively small number of firms competing domestically and unfair trade practices abroad has created an intensely competitive environment in the industry. Each force has a high ability to impact profitability. The potential threat of new entrants in the industry is a low threat. The most significant barrier to entry into the industry is the enormous capital requirement needed to build or purchase production plants. There are also various regulations imposed by the government (in the U.S. at least) in terms of environmental regulations, labor regulations for an industry with jobs that are potentially hazardous among other regulations the government imposes on firms in the industry. There is also a learning curve to producing steel products and meeting specific requirements of customers so a new entrant would either have to pay ... Get more on HelpWriting.net ...
  • 14.
  • 15. MKC1 Sample quiz 1 answers 1. Advertising can break through perceptual screens with all of the following examples except: A. Closure B. Subliminal ads C. Blogs and electronic bulletins D. Virtual reality 2. The personal determinants of consumer behavior include the: A. Culture in which a person is raise B. Individual's needs and motives C. Family to which one belongs D. Society from which one comes 3. To be effective, market segmentation must meet which of the following basic requirements? A. The firm must avoid focusing on non–variables, such as profitability and volume B. The market segment must have measurable purchasing power and size C. The company must expand beyond its marketing capabilities to capture growing markets D. The market segment must reflect the ... Show more content on Helpwriting.net ... Indirect competition because they are all in the fast food business 18. Alliances are considered essential in a country where: A. Partnerships with local firms provided regional expertise for a company expanding its operations abroad B. Laws required foreign firms doing business there to work with local companies C. The partners combine resources and capital to create competitive advantages in a new market D. Efforts are required to achieve organizational objectives by predicting and influencing the competitive and political–legal environments 19. Which of the following has ended total monopoly protection for most utilities like natural gas, electricity, water, and cable TV service? A. Deregulation movement B. Oligopoly C. Temporary monopoly D. Antitrust remedies 20. Marketers must constantly monitor their competitor's products, prices, distribution, and promotional efforts because the: A. Competitors may be violating the truth–in–advertizing laws B. Actions of competitors may threaten the firm's monopoly position C. Actions of competitors may create an oligopoly within an industry D. New products offerings by a competitor may require adjustments to one or more components of
  • 16. the firm's marketing mix 21. In which industry might there still remain a monopoly in certain geographic locations? A. Cell phone provider B. Cable TV provider C. Supermarket D. Dentist 22. Monopoly in the competitive environment: A. Is enjoyed by ... Get more on HelpWriting.net ...
  • 17.
  • 18. Opportunities At Amazon Opportunities are meant to take advantage of once being noticed. Like how Amazon took notice of its data in the early 2000's, it needs to take notice of other opportunities that are laid before them. The opportunities that they should continue to focus would be growth prospects e–commerce and strategic acquisitions. Growth prospects e–commerce E–commerce has continued to be a business trend and it continued to grow in 2015. According to the data the Stefany Zaroban got from the U.S. Commerce Department, the web sales in 2015 totaled "$341.7 billion for the year, a 14.6% increase over 2014's $298.3 billion" (Zaroban, 2016). This reveals that Amazon would continue to have the chance to increase their sales as well as an increase to bringing in more customers. According to the data that GlobalData received, U.S. had around "300 million internet users in the year 2014 which was an increase of 7% over the previous years" (GlobalData). These statistics show that with the increase of online shoppers every year and the definite advance in technology in the future, more people will shop online than to go to retail stores. Strategic Acquisitions According to Amazon's history and timeline, they were able to add features to Amazon every year. Like in 2014 of December, they were able to add a one–hour delivery for prime members, add in HBO GO on Amazon Fire TV, Ultra HD Movies and TV Shows on Amazon Instant Video, included in a 'Make an Offer' for customers, and much more throughout ... Get more on HelpWriting.net ...
  • 19.
  • 20. Ben & Jerry 's : Japan Michael Helie, Unit Three Case Study, Ben & Jerry's – Japan Ben and Jerry's a well–known American ice cream producer with a history of great tasting ice cream and a strong sense of social responsibility. Their published mission statement is broken into three parts, product mission, economic mission and social mission (Ben & Jerry's). The company places social responsibility as a high priority and a strategic leg of their mission statement. In part, their statement recognizes, "the central role that business plays in society b initiating innovative ways to improve the quality of life locally, nationally and internationally" (Ben and Jerry's, Mission). The company's emphasis on social responsibility is evidenced through many social and charitable contributions and actions the company has established. Founded in 1978 by Ben Cohen and Jerry Greenfield, the Ben and Jerry's Homemande Holdings Inc. enjoyed rapid growth in popularity, product brand recognition and financial gains. Due to declining sales in the United States, and with some notable success in foreign markets such as Canada, Russia and the United Kingdom, Ben and Jerry decided to look at entering the Japanese Ice Cream market. This market was very attractive because as it is only second to the United States in the amount of ice cream consumed annually. However the Japanese ice cream market was dominated by the HaagenDaz Company (Case Study). Due to HaagenDaz size and global sales success, it would not be an easy ... Get more on HelpWriting.net ...
  • 21.
  • 22. Taking a Look at Marico Egypt Competition review: There are many competitors in this product category that will compete with the company's product by 2050 and may threaten the product's process and use this technology before the company. One of these competitors is Procter and gamble which has a high market share in Egypt; 67% of Procter and gamble business in Near East markets; Egypt, Lebanon, Jordan and Iraq. They took the 12 original–million–pound investment to the present amount of 1.25 billion Egyptian pounds. The development of Procter and gamble and its production level have been enormous; the company today supervises a portfolio of 14 brands. Procter and gamble have some strengths and weaknesses, the strengths they have is that they have over 300 brands all over the world which are existing in 180 countries, over than 125000 employees in P&G all over the world, it has 24 brands which have sales every year over the billion dollars, due to outstanding marketing and advertising their brands have high recall and finally they participated in important sporting events as sponsors. There are also some weaknesses and one of them is that many false products are on sale under their brand names, also their products have a high competition from international brands. There is also another competitor that will compete with the company on this product which is Marico Egypt and its market share is also high in Egypt; Marico's launched in Egypt in 2006–07, when it obtained the local hair care ... Get more on HelpWriting.net ...
  • 23.
  • 24. The Motorcycle Industry 's External Environment The major driving forces in the motorcycle industry's external environment includes; growth rate changes in the industry. Two, there is change in the buyers of motor cycles and how they use it. In the recent years motor cycles have been associated with robbery and drug trafficking. Three is the marketing innovation. The motor cycle industry is yet to fully embrace the new internet technology. Four, there has been numerous entry of major firms that have brought imbalanced competition in the industry (Raman, 2004). Five, lack of enough technical knowhow has made many people to either fear the motor cycle or to have wrong information about them. Globalization and increased efficiency and cost change is another reason for driving forces for ... Show more content on Helpwriting.net ... This means if one of them drops the price, it affects all the other competitors. Due to this high competition, this industry may suffer low returns. Competitive rivalry also leads to slowly growing revenue and increased production costs. Supplier's bargaining power: Most of the motorcycle suppliers depend on a single or two makers to purchase most of their products. This can cause great loss to a supplier if a buyer decides to switch to another supplier. This leads o the suppliers being too susceptible to demands hence they hold little authority. Buyer's bargaining power: Consumers don't posses much bargaining power. This is because they only to buy in many case a single motor cycle at a time. They have also opted to buy their motor cycles from foreign countries, because they are not satisfied with the local products. Three statistics about the size of the motorcycle industry such as revenue, growth rate, number of units sold by manufacturer/country, The recent global motor cycle industry statistics indicates that the industry was worth 84.5 billion dollars in the year 2014. According to market line, since 2010 the industry has not recorded any increased growth. Nevertheless, there is expectation that this growth will increase by 6 % in the next five years hence reaching a worth of ... Get more on HelpWriting.net ...
  • 25.
  • 26. The Bargaining Power of Buyers in the Aerospace & Defense... Kelly Mann ECN 2020–84250 Competitive Forces Paper December 6, 2010 The Bargaining Power of Buyers in the Aerospace & Defense Industry The United States aerospace and defense industry is the largest of its type in the world. In 2009, United Press International, Inc. reports the aerospace and defense industry achieved a record $700 billion in spending. The defense market has experienced significant economic growth over the last decade due to large U.S. security spending in hopes to impact or end the global war on terrorism. The 9/11 attacks on the U.S. increased demand in the defense market while causing a decline in the airline industry. Airlines have suffered due to new security guidelines and a downturn in the ... Show more content on Helpwriting.net ... Zakheim and Kadish explain two decades ago, there were more than twenty prime contractors competing for defense contracts while today the government relies on just six contractors to build its defense systems. Zakheim and Kadish state, "The system largely forgoes competition on price, delivery and performance and replaces it with a kind of "design bureau" competition". The report explains that firms such as Boeing and Lockheed Martin have operated in collaboration on several projects such as the Air Force's next generation bomber (Zakheim & Kadish, 2008). Collaboration of this nature suggests cooperative equilibrium between the firms to enhance their mutual payoff of outbidding competitors. With the defense market on the downturn pending major budget cuts over the next several years, more collaboration strategies are possible for firms to remain competitive. The existing procurement system encourages bargaining among the government and bidding firms. When budgets are allocated generously, demand is high and firms can set their prices higher. Budget cuts decrease demand and increase bargaining between buyer and seller. Security Industry reports budget deficits subject contracts to greater 3|Page scrutiny and tougher negotiations making contracts more difficult to obtain in the coming years (Security Industry, 2010). Defense firms are at the mercy of the defense budget. In times when the budget is maximized and demand increases, ... Get more on HelpWriting.net ...
  • 27.
  • 28. Marketing Analysis Of Zappos.com Owns A Stable Source Of... 1 – Executive Summary Zappos.com owns a consistent share of shoe buyers' market and maintain a solid and prominent position in online retailing. Although the numbers suggest that the company serves the US market like no other company, an expansion of its current share should be considered. Even thou the investments that this would require, we agree that Zappos could expand and build a stable source of competitive advantage by producing its own shoes line, followed in the future by it's own shoe related wear line. The main issue regarding the expansion of online market and the low barrier at the entrance that characterize the e–business is that many other shoe resellers and low cost companies accessed the market, raising the level of competition. As cited on the provided case, an increasing number of users gets to Zappos by using referral provided by Google, right after having compared the prices of the online shops for the same article. At the same time, Zappos has few possibilities to low down the prices over a certain point, has it has to buy from Nike, Adidas, and all branded producers that impose most of the price. In the final retail price Zappos has to include the high costs on customer service, shipping and overall experience; all these factors combine and most of the time exceed the prices offered by low cost resellers, which give up the quality of the service in order to be able to offer low prices. Having a self made shoe line would be a solution for both of ... Get more on HelpWriting.net ...
  • 29.
  • 30. Major Forces That Are Leading International Firms Essay There are five major forces that are leading international firms to the globalization of their operations which includes (1) political (2) technological (3) market (4) cost and (5) competition. Many firms initiate international operations to gain assess by combined markets through exporting product or producing within the area. Technological According to (Ball, 2011) today's technology has allowed an advance in computers, communication and an increase flow of ideas. Through the internet and networks small companies can compete globally. Markets Companies use foreign countries to establish a business to avoid having their competition take their business. With the majority of the population being in foreign countries, outsourcing helps to generate growth. Cost Management utilizes lower cost by moving production lines to foreign countries because the labor is cheaper, and can also lower other parts of a company value chain. There is a reduction in the cost of generating and transmitting information as well as a decline in transportation cost. Competition Competition is increasing because of growth in automobiles, computers, and electronics. Firms are also defending their home markets from foreign competitors by entering into foreign markets. There are a number of reasons why a manager may not be able to successfully apply the specific techniques and concepts learned in his/ her country in other areas of the world. Each country has its own values, cultures and ethical ... Get more on HelpWriting.net ...
  • 31.
  • 32. The For Efficient Distribution Of The European Commission... 1) Briefly summarise the main points of the case Verboven's (2009) discusses vertical restraints, concluding their necessity for efficient distribution, discussing how the European Commission has altered its interpretation of Article 81 overtime. Three types of restraint are highlighted: Selective distribution, Exclusive distribution and Exclusive dealing, and that restraint adoption depended on current levels of regulation. Verboven (2009) explains that vertical restraints became subjected to EU Competition Laws and due to 'cumulative anti–competitive effects ' were reformed, becoming stricter. By 2002, new block exemptions aimed to increase flexibility on acceptable agreements and that only Selective or Exclusive distribution can be applied, not both. Black clauses including Retail Price Maintenance (RPM) and passive selling outside of territories were listed. Nevertheless, post–2002 manufacturers were now allowed to make certain vertical agreements (excluding black clauses), assuring their market share was within the newly defined thresholds (in general 30%). Overall, Verboven (2009) emphasised three main issues. Firstly, double marginalisation occurring when both manufacturer and dealer apply separate profit incentivised mark–ups. Secondly, vertical externalities result in dealers having no incentive to provide sale and after–sale services, as the dealer ultimately provides the manufacturer with increased profits. Finally, competing dealerships may freeride on ... Get more on HelpWriting.net ...
  • 33.
  • 34. Major Factors That Contributed To Xiaomi Become A Leading... What are the major factors that contributed to Xiaomi becoming a leading smartphone company in the PRC? Xiaomi was growing rapidly in the last five years in which it has become the world's third largest smartphone company. Xiaomi has a great understanding of its customers and the market; therefore, it was able to attract many customers and create high quality products. One of the major factors that contributed to Xiaomi's success was the mobile internet and e–commerce strategies. Xiaomi grew into a mobile internet and e–commerce company that contract–manufactures smartphones and compatible devices designed to offer a complete customer experience. The second major factor was Xiaomi's world–class team. Xiaomi contained a world–class team of Chinese executives and one prominent western executive, with collective experience at top foreign IT firms like Google, Microsoft, Motorola, and Yahoo. Its executive team complemented Lei Jun, Xiaomi's driven founder and CEO, and brought attributed that Lei Jun lacked. Furthermore, the last major factor was Xiaomi's manufacturing model, which is based on customer demand. In other words, when Xiaomi's customers place their orders ... Show more content on Helpwriting.net ... For instance, at the beginning, Apple and Samsung were only focused on competing with each other, caused the outburst of Xiaomi. Therefore, Xiaomi should not allow similar things to happen or create threats. Also, Xiaomi should not only focus on competing with the local Chinese rivals because that may causes the loss of market share due to the growth of the industry giants. The best strategy for Xiaomi is to balance its competition with the industry giants and the local rivals. Meanwhile, Xiaomi needs to listen to the market and fulfill the customers' expectations. Xiaomi also needs to be aware of all the companies, threats, and opportunities to ensure its ... Get more on HelpWriting.net ...
  • 35.
  • 36. Competitive Forces : The Competitive Force Competitive Forces. The competitive force is a system to understand an industry by examining the interactions among competitors in an industry or non–profit sector: potential new entrants, substitute offerings, suppliers, and buyers to the non–profit sector (Ketchen & Short, 2015, Section 3.1). To help analyze the forces a professor by the name Michael Porter developed a popular analytical tool used in the business world to identify how much profit potential exists in an industry (Ketchen & Short, 2015 Section 3.1). In Figure #: Competitive Five Forces, is a model for the analytical tool that reveals the component of the threat of new entrants, threat of substitutes, bargaining power of suppliers and buyers, and rivalry are rated on a scale of low–to–high to show the impact of the competition within the warm water therapy industry is and how KAA functions in the industry. Threat of New Entrants. New entrants into the industry are firms that do not currently compete in the industry but may in the future (Ketchen & Short, 2015, Section 3.3). New entrants have a tendency to reduce potential profits of an industry by increasing the competitiveness, which could reduce the quantity of clients that organizations rely on to visit its operation. According to Ketchen and Short new entrants can be "start–up" companies created by entrepreneurs, foreign firms that decide to enter a new geographic area, supplier firms that choose to enter their customers; business, or buyers firms that ... Get more on HelpWriting.net ...
  • 37.
  • 38. A Brief Note On The Italian Shoe Industry Essay 2.Demand conditions If the local market for a product is larger and more demanding at home than in foreign markets, local firms potentially put more emphasis on improvements than foreign companies. This will potentially increase the global competitiveness of local exporting companies. A more demanding home market can thus be seen as a driver of growth, innovation and quality improvements. 3.Related and Supporting Industries When local supporting industries and suppliers are competitive, home country companies will potentially get more cost efficient and receive more innovative parts and products. This will potentially lead to greater competitiveness for national firms. For instance, the Italian shoe industry benefits from a highly competent pool of related businesses and industries, which has strengthened the competitiveness of the Italian shoe industry world–wide. 4.Firm Strategy, Structure, and Rivalry The structure and management systems of firms in different countries can potentially affect competitiveness. By using Porter 's diamond, business leaders may analyze which competitive factors may reside in their company 's home country, and which of these factors may be exploited to gain global competitive advantages. Business leaders can also use the Porter 's diamond model during a phase of internationalization, in which leaders may use the model to analyze whether or not the home market factors support the process of internationalization, and whether or not the ... Get more on HelpWriting.net ...
  • 39.
  • 40. Swot Analysis In Hotel Technology Management Assessment 2 Akash Gaur 706367 Diploma in Business (Level 7)  SWOT Analysis for Existing Business STRENGTHS: Innovative Technology: They have smart cards to secure customer's rooms, online food order from Hotel App. Strategic Location: Situated in the heart of the Manukau city as all mainly tourist locations are near like Takapuna beach, Northshore, Mission bay beach, Waiheke Island and many more. WEAKNESSES: Complex ownership structure: As this hotel is a partnership firm so if in future will have dispute between partners, this can also be one the weaknesses. Communication gap between Management: There can be communication gap between top level management and lower level management and this can be one the main weaknesses of business. They don't have Biometric device to calculate attendance automatically. OPPORTUNITIES: Increasing employment: They are increasing the employment in a country. Expansion into international market: They are also expanding hotel chains in international markets because hotel industry is very big industry. THREATS: Perfect Competition: As they are in an industry where there are many buyers and sellers with same product and services and this could be one of the main threats to their business. Terrorism: As we know terrorism is the main threats that world is facing right now and it can be threat to them also. Foreign competitors Entering local market: As it is perfect ... Get more on HelpWriting.net ...
  • 41.
  • 42. Walmart Case Analysis Wal–Mart: A Case Analysis Matthew Hoskins LeTourneau University Wal–Mart: A Case Analysis Wal–Mart, its headquarters located in Bentonville, Arkansas, is currently the largest retailer offering different formats of stores to fit the needs of the neighborhoods in which they are located. The company operates in several different countries: Argentina, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua, Puerto Rico, and the UK. With all of these locations, Wal–Mart employees over 2 million employees. Wal–Mart recorded a bold $408,214 million in revenue for the year ending in January 2010, an increase of .09% over 2009. Furthermore, Wal–Mart recorded an operating ... Show more content on Helpwriting.net ... This takes away from Wal–Mart's earning potential if they are unable to acquire sales from new markets (DATAMONITOR: Wal–Mart Stores, Inc. 2010). Discussion Although Wal–Mart cuts costs in every way the company thinks possible, being sparse with its employee wages can create negative consequences. How much longer are employees working for Wal–Mart going to accept their low wages and high insurance costs? This could create a shortage of labor in the future. Furthermore, many people have worked for Wal–Mart and have left with a bad taste for the company. Poor treatment of employees often causes their families to stop shopping with the company as well. Many people have become disgusted with Wal–Mart over reports in the news about treating their employees unfair while offering them little pay. Vendors who service Wal–Mart also receive ill treatment; the company tries to bully everyone in to doing things their way or not at all. A company that markets to families has to maintain a good reputation in order to attract customers. If Wal–Mart does not improve their image, business could suffer in the future. Soon, Wal–Mart may not be able to find employees that will work for so little pay, forcing them to increase its labor costs, which will then force its prices skyward. Furthermore, if Wal–Mart had a more positive image, more customers would welcome their stores into their neighborhoods; this would create an opportunity for more ... Get more on HelpWriting.net ...
  • 43.
  • 44. The Adoption Of Islamic Business Practices The adoption of Islamic business practices by organizations: Why, How and what are the performance outcomes Organizations in most industries face increased competitive pressures from other organizations that aim to satisfy customer demands. One of the most significant issues that face organizations today is International competition in rapidly changing environment (Porter, 1986). Competition creates diverse, new capabilities into an industry and more dynamic and uncertain competitive environment. In industry the speed of technological developments might have changes due to increased competition (Wiersema and Bowen, 2008). In most global industry the fast development of products and process innovations has become very important in order to achieve competitive advantage (Bettis and Hitt, 1995). The expectations of customers are increasing, and to meet the needs of the customer, organizations are competing with each other. They are looking for ways they can get more profits and market share. There are many factors to this increased competition, as technology and globalization have shortened distances and consumers are now aware of more products and services (Frésard and Valta, 2012). The world is changing rapidly and ways of doing business have also changed. Globalization and technology have changed the way corporations do work and how they treat their customers and employees. Globalization has also increased competition. Now standards have changed, and organizations are ... Get more on HelpWriting.net ...
  • 45.
  • 46. Porter Five Forces Nowadays, five forces by Michael Porter can be analyzed to when discussed about competition The following are the forces of port services industry especially in Indonesia based on Porter five model competition: 1. Threat of New Entrants – high a. New entrants Possibility of new entrants from more than 90 terminals operator licenses (BUP) as a consequence of the new shipping regulation No. 17/2008, some are granted to new players, including foreign investment, local governments and private companies b. Entry barrier Quite high due to high investment for port facilities 2. Rivalry Among Existing Companies – medium a. Local competition, e.g. intra–port competition tbetween terminal operator at Tanjung Priok Port, the other example is competition ... Show more content on Helpwriting.net ... For Marketing Strategy using Porter five forced model by Michael Porter and Rethinking Marketing by Michael Porter and Hermawan Kartajaya Besides all those theories, in this literature review also make review to analyzed CRM, RFM, clustering method. Indonesia is an archipelago that has the territorial waters of two–thirds of the total area. As one of the largest State–owned Enterprise in the field of port services in Indonesia, IPC has very varied customers. However, until now the IPC does not yet have a mapping of the customer, while the need for a vital relationship with the customer to be able to retain current customers and also to attract new market. Therefore, can do by customer profiling, the model used are RFM and K–Means Clustering. These days, ports are being integrated into worldwide logistics chain. The value of services provided by regional ports increasingly transcends the interest of local users and benefits business and communities located beyond regional and national borders. Shipping and logistic company have forced to the port to adapt their need and ... Get more on HelpWriting.net ...
  • 47.
  • 48. Marketing Analysis Of Zappos.com Owns A Stable Source Of... 1 – Executive Summary Zappos.com owns a consistent share of shoe buyers' market and maintain a solid and prominent position in online retailing. Although the numbers suggest that the company serves the US market like no other company, an expansion of its current share should be considered. Even thou the investments that this would require, we agree that Zappos could expand and build a stable source of competitive advantage by producing its own shoes line, followed in the future by it's own shoe related wear line. The main issue regarding the expansion of online market and the low barrier at the entrance that characterize the e–business is that many other shoe resellers and low cost companies accessed the market, raising the level of competition. As cited on the provided case, an increasing number of users gets to Zappos by using referral provided by Google, right after having compared the prices of the online shops for the same article. At the same time, Zappos has few possibilities to low down the prices over a certain point, has it has to buy from Nike, Adidas, and all branded producers that impose most of the price. In the final retail price Zappos has to include the high costs on customer service, shipping and overall experience; all these factors combine and most of the time exceed the prices offered by low cost resellers, which give up the quality of the service in order to be able to offer low prices. Having a self made shoe line would be a solution for both of ... Get more on HelpWriting.net ...
  • 49.
  • 50. Differences in Gillette's Old and New Advertisments Essays In the novel Brave New World, Aldous Huxley portrays a futuristic world to the readers, enabling them to compare the present society to the future culture. Similarly, by analyzing the ads of 1950's and the 21st Century, we can compare the societies of the past and the present. The Gillette Company was founded approximately a hundred years ago. The company has been making ads through out the last century to popularize their products. By exploring these Gillette ads, we can gather facts about the market system and consumer demands during the time periods where the ads emerged. The Gillette ads from the 1950's to 2004 portray the declining competitiveness and consumer growth of the expanding Gillette razor industry. After the World War ... Show more content on Helpwriting.net ... Although few other competitive companies exist, through the years Gillette has become so famous and rigid that it is a household name now. Given this lack of competition, Gillette has the freewill to do almost anything. Their ads now give more attention to the product system rather than focusing on the market. The Gillette Mach3, a modern ad is very simple, and pictures the Gillette blade and mentions its features (Mach 3 Shaving System). Although the ad is very simple in nature, Mach3 is the most sold Gillette product. Thus, owing to low competition and the comfort and uniqueness of the Gillette products, the demand is very high, regardless of the plain features of the ads. Though the demands are high due to lower competition, the Gillette product pricing remains a controversy. The 1950s ads focused a lot on the cheapness of the blades and their ability to meet the expense of everyman (Display Ad 71). J. P. Spang, Jr., the President of the Gillette Company in the 1950's had said that they had focused on producing products that are available in quantity and quality, keeping in mind to "sell it to the consumer at the lowest price consistent with a fair profit" (Spang 25). Meanwhile, modern ads do not emphasize on the prices, as they know their products are expensive. Due to their ongoing high demands, the company probably assumes that in the modern era, the consumers do not get swayed away by higher prices as long as the product is being upgraded. This ... Get more on HelpWriting.net ...
  • 51.
  • 52. Competition From Foreign Producers On American Consumers Competition from foreign producers affects American consumers in a number of ways. They affect the way we, as Americans, pay taxes, the way we trade with other countries and the limitations of that trade. These trade barriers protect us in order to keep specific industries of the United States safe and to protect parts of our economy. Trade barriers include tariffs, quotas, and subsidies and are a part of our economy because they are necessary for the success of our country. There has been a dual view of trade since the time of the ancient Greeks. The two sides of these philosophers views are the recognition of the benefits of international exchange, but that there is concern that certain domestic industries would be harmed by foreign ... Show more content on Helpwriting.net ... The policies that were developed in Western Europe took different forms. For example, domestically, governments would provide capital to new industries, exempt new industries from rules and taxes, establish monopolies over local and colonial markets, and grant titles and pensions to successful producers (LaHaye, n.d.). Then, the government would assist local industry by imposing tariffs, quotas, and prohibitions on imports of goods that competed with local manufacturers (LaHaye, n.d.). A tariff is a tax on imports, while a quota is a legal restriction on the amount of a good coming into the country (Guell, p. 204). The economic strength of the United States provided the stability that permitted the world to leave behind the chaos of war and grow into a new, more prosperous era (LaHaye, n.d.). This is when The Marshall Plan comes into play. The Marshall Plan, also known as the European Recovery Program, channeled over $13 billion to finance the economic recovery of Europe between 1948 and 1951 (Foner & Garraty, 2009). The Marshall Plan successfully sparked economic recovery, meeting its objective of 'restoring the confidence of the European people in the economic future of their own countries and of Europe as a whole.' (Foner & Garraty, 2009). This coincided with the United States goals to rebuild devastated war regions, to remove trade barriers, to ... Get more on HelpWriting.net ...
  • 53.
  • 54. The Influence of Government on Country Industries and the... Government can actually influence the competitiveness of a country's industrial and commercial sectors by using the competition law policy that apply to all economic agents such as commercial supply of goods and services , production and financial resources. for example the case study from automotive industry in India where the government was taking part in helping develop the automotive industry by supporting fund to whoever can come up with the best research. Government can also actually decrease the import barrier (import tax) to create the competition between the foreign firm and domestic firm as well. Most of the industrial in many countries was actually run by Entrepreneurships. And the main three factor of running the production ... Show more content on Helpwriting.net ... Because when small business Entrepreneur receive opportunity by information. Most of the time it tends to increases the competition for these small firm entrepreneur who are running their business by using one stop shop business model. Most of the time are reliable on the raw material price information.Becaue One stop shop is actually run by provide the service in one shop, place and single location that can actually provide the service to consumer in just one stop. Also government can influence the competition in country industry's and commercial sector by open the direct access of government information to public. For example like the announcement from the government about the oil price that the oil price will drop. Moreover most of the automotive industry would foresee this as the opportunity to increases their production, because the fact that government announced the drop of oil price in long period. Which mean that there will increase of automotive consumer due to the drop of oil price. And when the production is increase than the competition in sale would automatically increase as well. Government can also influence the competition in the country industry's by controlling the quotas from foreigner firm or domestic firm (From dictionary Quotas = A Physical limitation on the import of certain goods into a ... Get more on HelpWriting.net ...
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  • 56. Competitive Strategies and Government Policies Paper on... Competitive Strategies and Government Policies Paper on Wal–Mart ECO/365 University of Phoenix Week 5, Learning Team Assignment March 18, 2013 Management has recognized the effect of changes in the real–world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following points. Write 1,400 – 1,750–word paper of no more than in which you describe how each of the following are or potentially will affect your industry or one with which you are familiar: New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your ... Show more content on Helpwriting.net ... Wal–Mart continues to expand their brand name to maintain the iron fist hold on the market they currently dominate. These generic brands allow Wal–Mart to cut prices and offer many goods lower than their competitors. Wal–Mart has announced expanding its generic line by approximately 80 new products, boasting that the products are an average of 40% lower than popular brands. Wal– Mart like other large retailers has to abide to tax laws and regulation set in place by the government. Wal–Mart like any other company has regulations to follow such as the antitrust laws. Antitrust policy is the government's policy toward the competitive process (). Where the government may intervene is say if Wal–Mart was merging with a company, and it was taking a complete strong hold on the market giving it the ability to fluctuate prices as high as may want to. Still being able to retain consumers even at such a high price and they can do nothing about it. Antitrust regulation can prevent a company like Wal–Mart from doing so. The specific law is the Sherman Antitrust Act of 1890 designed to regulate the competitive process. Wal–Mart biggest externality from opening a store in a small town can undermine the town centers and replace them with commercial sprawl on the outskirts of these towns (). If these externalities are a reason to limit Wal–Mart's aggressive pricing policies is a debatable question (). An externality is the ... Get more on HelpWriting.net ...
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  • 58. Business Strategy: Black And Decker Black and Decker is a multinational corporation based in Baltimore Maryland, well known for its production of consumer and professional power tools. The company sells its products in over 100 nations with a revenue of $5 billion, with operations in Canada and Britain. During its growth, the company was decentralized and kept all of its businesses functions as close as possible to the market to be served. During the 1950's and 1960's, Black and Decker's were using a Multicountry Strategy, which is a strategic approach which fits each hosts market situation. During this time the company established 23 wholly owned subsidiaries as well as two joint ventures in foreign markets. It had a very strong brand image and not much competition as it owned a near monopoly share of the ... Show more content on Helpwriting.net ... New companies entered the power tool industry, which lead to the company having to change its strategy. Its main competitors were Bosch, Makita and Panasonic which posed a great threat to Black and Decker's monopoly position in the market. During this time the company shifted towards a rationalization strategy in which, the company increases its efficiency by, in this case, closing factories and moving towards centralization. Black and Decker's centralized its Research and Development and production. They were moved into fewer but more efficient locations. Furthermore, rather than owning a 23 independent subsidiaries, the company changed into a centralized organization. While globalization was still kept as a key part of the company's strategy, Black & Decker was no longer as dominants which set it back in terms of company growth. By the 1990's the company faced new competition. Powerful retailers such as Home Depot and Lowe's created great pressure on prices causing the company to get rid of more factories. Black & Decker's factories competed amongst each other not to be shut ... Get more on HelpWriting.net ...
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  • 60. Competition Is The Cornerstone Of Capitalism Competition is the cornerstone of capitalism. It creates rivalry among businesses to produce quality goods and services at competitive prices. This gives consumers a better sense of variety when making purchases. Competition in its purest form creates small buyers and sellers none of which are too large to negatively affect the market as a whole. Competitive markets can be dated back to ancient times when merchants competed in foreign trade. In the 19th century economists considered competition as a natural phenomenon in which growth of an operation was fueled by supply and demand in a free market economy. They also believed that supply and demand worked better in a laissez faire type environment. This was possible through freedom to trade, transparent knowledge of market conditions, no government restrictions on trade, and access to buyers and sellers. These conditions prevented any buyer or seller to significantly affect the market price of a single commodity. After the mid 1800's, limitations to compete became evident during the industrial revolution. Corporations achieved manufacturing capabilities that would surpass their competitors and would allow them to fix prices and squeeze out their rivals. Eventually some businesses became so large that they controlled enough market share to deceptively manipulate prices in their industry. This activity created an atmosphere for President Theodore Roosevelt to launch his famous trust busting campaigns. The era of antitrust ... Get more on HelpWriting.net ...
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  • 62. Porter's Five Forces Tourism Industry Porter's five forces analysis is a tool is useful for us to analyse the threat of competition in an industry. Porter believed that the industries were influenced by five forces; competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of substitutes. Analysing these areas can allow you to see attractiveness of the market and find a competitive advantage. Competitive Rivalry In this section we look at who are our competitors in the same industry and how can we gain the large portion of the market share and profits. However, if the level of competition becomes too high it can ultimately lead to a decrease in profits. There has been an increase in the amount of competitors on the tourism industry over the last 10 years, with the introduction of online sales and new airlines. For the tourism industry the level of competition can be quite high as ... Show more content on Helpwriting.net ... If their planes are high–class, then it is more likely that more people will benefit from their services, and the same is with hotels. If they are nicely and functionally done, then their services will be of a higher standard, and the company will gain new customers. The bargaining power of suppliers is neither too high nor too low. Bargaining Power of Buyers This is where you are able to determine the price with your suppliers. This can happen if there are a large amount of suppliers and you are buying in bulk. This may force suppliers into a price war. The buyers of the services of travel agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a small degree of concentration, due to the wide range of services. Customers accustomed to a high standard to remain faithful to their favourite agency even when the price increases, because the well–known brand and the strong position in the market inspires ... Get more on HelpWriting.net ...
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  • 64. Environmental Factors That Affect A Business 's Profit And... The changes in structure and management that occurred this year mainly consist of Satoru Matsuzaki taking over as president and representative director of Ryohin Keikaku, the parent company of MUJI. This took place on May 20, 2015, followed with Matsuzaki assigning board directors to be responsible for the operations and management of foreign divisions. Business Environment There are many environmental factors that can affect a business's profit and sale as a whole. To prevent any unplanned occurrences from happening, franchises analyze the external as well as internal factors in the surrounding environment to determine what must be done. The external factors that may affect MUJI as a franchise include material and labour changes which ... Show more content on Helpwriting.net ... These processes boast the fact of excluding excess packaging keeping it a minimum and being made of recycled materials only. If ever a day occurs where MUJI decides to change these processes, the brand image will completely change, thereby making it uncertain if the customer base will continue to purchase from the business. Another clear obstacle and vital factor is competition, which for this franchise range from household product shops and apparel retailers. The direct competition includes stores like IKEA, Costco and UNIQLO. All these business are successful worldwide, and continue to grow in consumers on a daily basis. When establishing the MUJI franchise in its location, the franchisee must take into account the surrounding stores which may pose a threat, and decide to make a few changes to stay competitive. Products and Services MUJI is a functional multi–product superstore that possesses an extensive array of products ranging from apparel, accessories, stationery, house decor, health and beauty supplies to snacking items. All of these items are of superior quality with minimal packaging. Presently, there are around 7,000 items being sold in MUJI stores. The brand is also exemplary for the use of mostly recycled materials, as a part of their CSR practices. As the brand's pricing slogan states, "Lower priced for a reason.", which encompasses the fact that MUJI does not forget about quality with it's ... Get more on HelpWriting.net ...
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  • 66. Dahlia Case Study OVERVIEW 1. Time Context The problem has to be solved by the year 1985. 2. Viewpoint Mr. Chua Boon Kang and Mr. Leong Sim Lam 3. Major Policy Statement Dahlia Furniture Private Limited is a local furniture industry, which supplies usually kitchen cabinets, wall units, bedrooms set and dining set. It also has metal and wood furniture sets. 4. Background of the Case a. The Company Dahlia Furniture made its entrance into the furniture industry in 1972 as subcontractors to two large furniture concerns, Ching Lin and Diethelm. It supplied mainly wall units and kitchen cabinets while bedrooms sets and dining sets were subcontracted out or obtained from local suppliers. Business went well and the company decided to branch into ... Show more content on Helpwriting.net ... Some of them are manufacturers while others are retailers who have their own showrooms. They can be possible competitors of Dahlia. Other competitors comprise of foreign manufacturers and retailers. Some of these are Ikea , Fly, Homestead and soon to operate Scandinavian, Italian, Japanese and American manufacturers. 6. Present Company Departmental Plans a. Product Planning Dahlia mainly supplies wall units and kitchen cabinets. It subcontracts local suppliers of bedroom sets and dining sets. b. Market Planning Dahlia Furniture advertises in Straights Times. In connection to its retailing operations, Dahlia rented a showroom to a department store in Orchard area, in Bukit Timah area and Upper Thompson area c. Production Planning The purchase of Upper Thompson and Ang Mo Kio factories are sought to increase the company's supply. d. Manpower Planning Dahlia acquired two factories namely Ang Mo Kio and Upper Thompson. The workers of these two factories were also hired. Staffs: Sales person 11 persons Clerical workers 4 persons Production workers (Thompson Factory) 6 persons
  • 67. e. Organizational Planning Dahlia Furnitures is managed by Mr. Chua and Mr. Leong. Other staffs of the company are as follows: Personnel Position Chua Soo Lee General Administartion Robert Lam Production and General ... Get more on HelpWriting.net ...
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  • 69. Ice-Fili Case Analysis Ice–Fili case analysis 1. Please provide an in–depth five forces analysis to illustrate the competitive environment for Russia's ice cream industry. How is it likely to evolve? Five forces analysis: 1) The bargaining power of suppliers * As some producers such as Ice–Fili wanted to keep their product's quality level, they imported specific raw materials, but they didn't have a problem in finding new suppliers. * As the technology of Russia was lagged behind Western's, Ice cream producers needed to import most of their ice cream machines. The bargaining power of suppliers for raw materials is low, while for facilities is high. 2) The bargaining power of customers * There are various ice creams in Russia, so ... Show more content on Helpwriting.net ... * The Russian economy is discouraging foreign investments, but the producers needed that money to update technology, modernize infrastructure, develop marketing and packaging solutions, develop dealer and distributor networks and so on. * The Russian financial crisis of 1998 resulted in a financial collapse and devaluation of the ruble by 2/3. The domestic producers had to reduce their reliance on imported materials and some foreign competitors exited the Russia market. 2) The fierce competition in Russia * Regional producers, who has a significant cost advantage and are more flexible To meet the market demand in regional areas, become more competitive. they accounted for about 30% of domestic market, a few regional even exhibited aggressive growth in Moscow and other metropolitan markets. * Foreign companies, such as Nestle, have a strong competitive advantage. Nestle has a long–term investment strategy, use local production and supplier to reduce cost, train and develop local staff who has a better understanding of the local market , and develop its own storage facilities, distribution and marketing network.. In addition, Nestle develop product that fit Russian taste and traditions. 3) The weakness of Ice–Fili * Cost disadvantage. High–price raw material, as well as the ice cream equipment, which has to import from other countries; high fixed ... Get more on HelpWriting.net ...
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  • 71. Loloe And Hermes Case Study Essay The supplier power: High The supplier bargaining power depends on the importance of volume, level of supplier uniqueness and threat of forward integration. The supplier's power is high in term of unique product, less product differentiation and high threat of forwards integration, affecting their customer's ability to acquire profitability (Porter, 1980). However, large firm like Chloe and Hermes international, accrued the power and the capital to pose a threat for forward integration by owning their own channel of distribution, giving opportunities to achieve high market share thus being strong competitors for other suppliers. In contrast, for new entrants, as a result of the high fragmentation of small scale suppliers, achieving economic ... Show more content on Helpwriting.net ... Chloe is a maison (subsidiary) of Richemont SA. Apart from Chloe, there are other world's leading luxury goods companies managed by Richemont like Cartier, Lancel, Alfred Dunhill, Montblanc to name a few. Perhaps, that could be one of the most valuable resources Chloe enjoyed over competitors. According to Geoffroy de La Bourdonnaye, the Chief Executive and creative director, the company generates a return on investment by focusing on a core line of business and competencies. Chloe engaged in a wide variety of product categories and continue to epitomize the free spirit and values of femininity, modernity, effortlessness and grace. Due to the labor intensity in the fashion industry, Chloe has made human its most important resources, i.e. the skills and capabilities of the design and production teams, the logistic team, marketing team, store personnel and other experts. Being part of Richemont's Maison, added value to Chloe brand. Andrew & Frédéric (2015) report shows that Chloe capabilities gave it the privilege to establish strategic alliances with other maisons which resulted in being able to produce successful, creative fashion collections. Justifying that, the analysis of the driver of the performance postulates that fashion collection made by a group affiliated brands with foreign experience will be three times more creative than the collection made by the ... Get more on HelpWriting.net ...
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  • 73. Antitrust Laws And Violations : Antitrust Law Antitrust Laws and Violations Introduction Antitrust laws are to protect competition. The free and open competition benefits that consumers have by ensuring that they have lower prices as well as new and better products. In a freely competitive market, each competing business generally will try to attract consumers by cutting its prices and increasing the quality of its products or services in order to try to beat out there competitor. The competition and the profit gives the opportunities to bring and also stimulate businesses to find new, innovative, and more efficient methods of production. Consumers sometimes benefit from competition when there are lower prices and better products and services (). The antitrust law is the law that ... Show more content on Helpwriting.net ... These laws also oversee planned mergers and acquisitions that are adequately large to add up to a threat to rivalry, and they take in hand commercial practices that can cause an uncertain threat to competition on the merits in an appropriately defined antitrust marketplace (Clark, 2007). Main Issues Competition is considered beneficial for business and business environment, as in a competitive market, companies offer higher quality products at lower prices to be successful or to gain market share. On the other hand, businesses perhaps get involve in violation of antitrust laws that is a white collar crime as it has a bad effect on competition, can damage economy and can increase prices. Antitrust laws are formed to protect consumer and competitors from unfair competition and its consequences, these laws prohibits: conspiracies, combinations and contracts in trade restraint, mergers, and acquisitions that tend to significantly reduce the competition offenses and methods of unfair competition, as well as unfair practices and acts in the conduct of commerce and trade (Kovacic et al, 2007). Competition serves as an effective mean for businesses to identify ways to improve product quality, charge lower price, and to increase efficiency. Business that can offer the highest product quality at the reduced costs will succeed in a ... Get more on HelpWriting.net ...
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  • 75. Competitive Intelligence The course lecturer will have argued that "strategy without intelligence isn't strategy, its guessing". Some managers however take the view that a competitive strategy that is rigorously developed around a strong set of product/service offerings, regardless of rivals intentions, plans, and actions, will, in any event, 'win the day'. Your task is to defend, through evidence and argument one of these two (or alternative) views. 1. Introduction In the 1960s and 1970s, firms across the world faced little foreign competition from each other and corporate strategy simply consisted of focusing on new product development to meet the increasing demand from expanding middle classes. In recent times, world growth has slowed, ease of trade ... Show more content on Helpwriting.net ... Whilst this practice of understanding what the competition is doing has been integrated into the organisational culture of many leading companies today, competitive intelligence has come some way. Its benefits were long understood in Germany as far back as the eighteenth century. By scouting the European Continent, the Germans discovered they could compete with British and French firms by applying foreign scientific adv ances to their own industrial processes. This allowed them to develop their own base of education and research as a foundation for technological innovation leading to the ownership of many international rights to formulae and processes, particularly in che micals (Rouach and Santi 2001). Japan was also an early pioneer in terms of grasping of the importance of competitive intelligence. It opened up to external influences after two centuries of self –imposed seclusion after the American invasion of 1854. Rulers in the decade that followed encouraged policies of community, nationalism and modernisation with the intention of enabling Japan to compete with the West by absorbing the latter's best practices (Rouach and Santi 2001). Following the end of World War Two, Japan converted its military espionage capability into a system of economic intelligence, for example, in the early 1950s, tens of thousands of market researchers were sent around the world to assess the potential ... Get more on HelpWriting.net ...
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  • 77. A Report On The Automotive Industry Essay 1. INTRODUCTION The automotive industry in India is one of the largest automotive markets in the world, previously one of the fastest growing markets globally. It started out as a small venture in the 1940s but witnessed a rapid growth with the entry of some big manufacturers like Mahindra & Mahindra and Maruti in mid and late 1900s. In 2000, this industry became an important sector of the Indian economy and a major foreign exchange earner for the country. The Shiv group was one of the largest industrial groups in India at this time established in the early 1900s. With the ownership of 20 companies and a turnover of US $1 billion, they were market leaders in the sectors like tea, auto parts, electronics, finance, pharmaceuticals etc. In 2000, Shiv industry was going through a rough phase experiencing a continuous loss. The key reasons were its inability to cope up with the changing needs and competitive scenario due to internationalization of this market. The challenges of quality based competition in high–tech product market and price based competition in low–tech product market became a big concern for Shiv's management. 2. PROBLEM STATEMENT 1 Globalization of automotive industry Although Shiv industries excelled in automobile industries, but the changing global trends in this industry was a key concern for Shiv's management. Due to internationalization of this market, the foreign auto manufacturers were rapidly replacing the local suppliers in terms of ... Get more on HelpWriting.net ...
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  • 79. Factors, Causes And Impact Of Administrative Monopoly Impact of Administrative Monopoly 1. Introduction Administrative monopoly is the behaviors that organizations use administrative power to restrict competition. In most circumstances, regional administrative monopoly includes compulsory administrative transactions, executive branch interference in business operations and abuse of a dominant company administrative behavior (Schneider, 2009). Administrative monopoly includes; using illegal means to override the executive division, block market for instance; foreign cars are restricted to enter the city by legislative region; companies using monopoly privileges conferred by the Government in order to increase barriers for competitors, reduce service levels, increase products' price, and so on (Guo, & Hu, 2004).. The main representations are; to promulgate regulations, circulars ... Show more content on Helpwriting.net ... Causes of Administrative Monopoly The increase of market competition is gradually growing up. However, due to historical reasons the previous administrative system, official standard mechanisms of power began to seek a new variation. Therefore, relying on the existing administrative monopoly power is not a very healthy market mechanism to find new opportunities and operation model (Gottinger, 2013). The combined causes of administrative monopoly include the following main points: a. Government and enterprises associated together in a very long time, the government managed enterprises, and companies also rely on the Government. When there is problem, the companies will not deal with their own, but with the government which will pass government abuses in certainly finding a proper excuse. Moreover, during the reformation, the government began to transform its functions. However, the government authority to redefine the division of permissions and government departments were unable to accurately grasp the people, which resulted in collision or disconnect between one another thus resulting to administrative abuse of power (Gottinger, ... Get more on HelpWriting.net ...