Five Forces Model of Hong Kong Disneyland

Topics: Brand, Learning curve, Competition Pages: 2 (532 words) Published: January 2, 2013
Five Forces Model of Hong Kong Disneyland
* Threat of New Entrants
* High capital requirements: High capital requirements mean a company must spend a lot of money in order to compete in the market. High capital requirements positively affect Hong Kong Disneyland. … * Strong brand names are important: If strong brands are critical to compete, then new competitors will have to improve their brand value in order to effectively compete. Strong brands positively affect Hong Kong Disneyland. … * Entry barriers are high: When barriers are high, it is more difficult for new competitors to enter the market. High entry barriers positively affect profits for Hong Kong Disneyland. … * Advanced technologies are required: Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects Hong Kong Disneyland. … * Patents limit new competition: Patents that cover vital technologies make it difficult for new competitors, because the best methods are patented. Patents positively affect Hong Kong Disneyland. … * Geographic factors limit competition: If existing competitors have the best geographical locations, new competitors will have a competitive disadvantage. Limiting geographic factors positively affect Hong Kong Disneyland. … * High learning curve: When the learning curve is high, new competitors must spend time and money studying the market before they can effectively compete. High learning curves positively affect profits for Hong Kong Disneyland. … * Threat of Substitute Products or Services

* Substantial product differentiation: When products and services are very different, customers are less likely to find comparable product or services that meet their needs. This is a positive for Hong Kong Disneyland. … * Limited number of...
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