Threat of Entry

Topics: Personal computer, Computer, Laptop Pages: 2 (343 words) Published: December 3, 2012
Threat of Entry

Significant economies of scale
the price of laptops has come down in recent years and the prices of some printers are more expensive than others that are smaller! Part of the reason for this is that there is a different degree of technology involved in the production of some of these products and, in addition, it is not likely that they will be produced in the quantities that will allow the benefits of economies of scale to manifest themselves. With most multinational corporations there are two separate economies operating between the actual company and the markets. The separate economies are internal and external. Internal: Tech Economy, Managerial Economy, Financial Economy, Marketing Economy, Research & Development External: The external aspects of scale economies consist of the distribution centers and retailers. For example; Apple, Sony or HP manufacture computers, while retailers arrange for computer deliveries to the customer. One exception is Dell, which has excelled in custom-built computers delivered straight to a consumer’s home. Scale Economies

it is estimated by analysts that in the near future the top 5 vendors may control 70% of the global personal computer market. Advances in computing power as well as communication technologies of close substitutes such as smartphone make the competition fiercer.

The importance of reputation or established brand loyalties is high. To meet the different market’s needs, nowadays laptop companies produce more heterogeneous products than 10 years ago. People buy laptop not only to
The experience-base advantages of incumbents are really high too. Established companies in the laptop industry have resources like capital, technology skills, raw material and operation management experiences. They have more chance to hire top managers and talents. Those things are really difficult for a new entrant to do.

The information for the government protection of incumbents has not...
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