power of buyers 4. The threat of substitutes 5. Competitive rivalry amongst existing firms The threat of potential entrants – Low The threat of potential new entrants for the vending industry is considerably low as there are many barriers to overcome. Barriers to entry can be viewed as follows: Access to distribution channels The vending industry depends heavily upon a variety of products from different manufacturers. As the industry serves all kinds of public and private locations (under
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relatively low profitability. Using Porter’s model‚ the threat of rivalry is high due to weak domestic demand‚ excess global capacity‚ a maturing industry‚ low switching costs‚ high exit barriers‚ rising operating costs (increasing raw material prices)‚ and more than 5 comparable competitors. The threat of entry is low due to high barriers to entry (economies of scale have been achieved and high capital requirements)‚ growth and profitability are modest at best‚ and most viable candidates are already
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suppliers is lower because of lack of new projects but still exists‚ substitutes are found for people having cash‚ they will invest in more secure industries if they are new investors‚ but if they already have invested in real estate the cost of switching to any other project or alternative will be very high‚ and
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there are relatively no switching costs for consumers‚ therefore the industry has to rely heavily on their brand image and quality of products. McDonald’s has a number of competitors; however they are currently the leader of the industry in market capitalization with a cap of $39.31 billion. Threat of New Entrants: The threat of new entrants in the fast food industry is high because there are no legal barriers which would keep them from entering the industry. The major barriers in which a firm faces
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(generally low in IT) | H | 1 | | Storage costs (generally low in IT) | H | 1 | | Product differentiation | H | 0 | | Switching costs | l | 1 | | Exit barriers | H | 1 | | Strategic stakes | H | 1 | | | | | Threat of a New Entrant | Economies of scale | H | 0 | | Product differentiation | H | 0 | | Capital requirements | H | 0 | | Switching costs | l | 1 | | Incumbent ’s control of distribution channels | l | 1 | | Incumbent ’s proprietary knowledge | h | 0 |
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SI422 Midterm Review Guide Module #1: Introduction____________________________________________________________________ Operational effectiveness -The extent to which a firm performs similar activities better than rivals -Necessary but NOT sufficient for long-term competitive advantage Strategy -Refers to performing different activities from rivals or performing them in a different way -Choose the right configuration of activities‚ incentives‚ systems. -Make the right trade-offs -Strategy
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Challenges facing education in South Africa outh Africa has a high-cost‚ low-performance education system that does not compare favourably with education systems in other African countries‚ or in similar developing economies. There is a multitude of well-publicised problems‚ including a shortage of teachers‚ underqualified teachers and poor teacher performance. In the classroom‚ this results in poor learner standards and results‚ a lack of classroom discipline and is exacerbated by insufficient resources
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Scanning the Marketing Environment Who are the primary competitors? How to ascertain their strategies‚ objectives‚ strengths and weaknesses‚ and reaction patterns? What are the key methods for tracking and identifying opportunities in the macro-environment? What are the key demographic‚ economic‚ natural‚ technological‚ political‚ and cultural developments? The Marketing plan Market survey Segmentation Identifying needs and wants Targeting Choosing a target market(s) Developping a market
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Multiple Choice Quiz Page 1 of 2 Home > Chapter 1 > Multiple Choice Quiz Course-wide Content Web sites for Techies Web sites of Interest Tech Plug-Ins for Offi... Tech Plug-Ins for Offi... Apply Your Knowledge D... PowerPoint Presentatio... Mobile Resources Plug-In Narrated Slides Video Clips iPod® Videos iPod® for Tech Plug-Ins MH Enhanced Cartridge Chapter 1 Multiple Choice Quiz (See related pages) Results Reporter Out of 10 questions‚ you answered 9 correctly with a final grade
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A -Threat of New Entrants is low (=The existence of barriers to entry (patents‚ rights‚ etc.) The airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The main concern for this is the cost of entry. The airline industry is one of the most expensive industries‚ due to the cost of buying and leasing aircrafts‚ safety and security measures‚ customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it
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