External Environment Five Forces Analysis – Luxury accessories Force Threat level (high or low) The Threat of Substitutes High Substitutes include: Counterfeiters‚ Not using luxury accesories High Power of Buyers High Many buyers relative to rivals? Yes -> Low Need the item? No -> High Have all the information? Yes ->High Lots of substitutes? Yes ->High Product performance is critical? Yes ->High Product differentiation is possible? Yes->Low The Threat of Entrants High‚ but not
Premium Strategic management Management Porter five forces analysis
What are the five competitive forces described by Michael Porter? Comment on them briefly 1. Threat of entry New entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices‚ costs‚ and the rate of investment necessary to compete. Particularly when new entrants are diversifying from other markets‚ they can leverage existing capabilities and cash flows to shake up competition‚ as Pepsi did when it entered the bottled water industry‚ Microsoft did when
Premium Competition Cost Marketing
capital requirements for entry vary‚ distribution channels are available‚ threat of retaliation is medium and government legislations play only a moderate role. On the other hand market experience and differentiation play the vital role. Threat of substitutes Threat of product-for-product substitution on this market is very high. It comes from other apparel retailers‚ designer clothes and tailor houses. Substitution by need is unlikely. Generic substitution can take place as well as "doing without"
Premium Inditex Vertical integration Marketing
power is high when the buyers have many choices of where and who to buy from and low when there are few choices. Broadway Café is located in downtown along with at least five other coffee shops. This means buyer power is high because there are substitutes and this automatically brings price sensitivity into play. The next tool needed to look at is Supplier Power. Supplier power is the ability that suppliers have to influence things like prices‚ quality or availability of products. Broadway Café
Premium Barriers to entry Coffee Coffeehouse
Title: Charles Schwab in 2008 Name: Gingco‚ John Mar N. February 05‚ 2013 Executive Summary Charles Schwab is a son of an assistant district attorney in California. He sttudied in Stanford University where he received degree in economics‚ which was followed by an MBA from Stanford Business School. In 1971‚ he set up his own stock brokerage firm‚ First Commander which was later on changed to Charles Schwab
Premium Revenue Strategic management Management
Michael Porter five force analysis for Essar Oil Limited Threat of new entrant Oil and Gas is a highly capital intensive sector. Huge investments and long gestation periods characterize every component of the value chain right from exploration and production to refining to retailing. The investment required runs into billions of dollars. The oil prices are also quite volatile and the industry also faces high geo-political risk. Taking these factors into consideration the entry barriers are quite
Premium Retailing Petroleum Substitute good
Isoquant - Meaning and Properties * Marginal Rate of Technical Substitution * Law of Returns to Scale Meaning An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that show all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity. Therefore‚ an isoquant represents a constant quantity of output. The isoquant curve is also known as an “Equal Product Curve” or “Production Indifference Curve”
Premium Substitute good Economics Consumer theory
Charlie is not truly ready for parenthood. It appears he is fighting a demon‚ longing for a piece of his life that was lost in his past. Motivated by guilt I believe he is substituting materialism for love believing money buys happiness. He would substitute a governess for parenting for he realizes his business ventures will not lend time to child rearing. We can all sympathize with Charlie on the surface‚ we have all made mistakes that we have to live with. Charlie is attempting to move forward with
Premium Parenting Empathy 2006 singles
Required: Show that the equilibrium condition and consumer equilibrium under both cardinal and ordinal utility theory are identical. They both assume that the consumer is rational. Consumer equilibrium‚ under cardinal utility theory‚ is achieved when the sufficient condition is met. That is‚ the total expenditure is equal to the consumer’s income. If a consumer is assumed to consumes two commodities only X and Y‚ then: Utility is a function of Y and X; U = f(X‚Y)…………………………..i Let the price
Premium Utility Consumer theory Substitute good
Competitive Strategy: Apple’s competitive strategy is differentiation across the industry. Apple prides itself on innovation more than any other company‚ and is known for their unique top of the line products. Using differentiation as their main source of competitive advantage‚ they have succeeded to the top of their industry‚ while retaining higher than industry average profit margins. This innovative attitude is the source of long-term success throughout the history of Apple. For example
Premium Product management Product differentiation Macintosh