conclusion can you draw from this? Degree of Rivalry: Mini mills were being used by the foreign competition which mean they were able to produce steel at less expensive rates passing that on ot their customers. Barriers to entry: Starting in the 1970’s since there were no trade barriers companies overseas were able to manufacture and sell steel for a much lower price here in the United States therefore affecting companies domestically. Supplier power: Once steel became needed again suppliers were
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•Registration fee + Cost Price + Road Tax + COE + additional registration fee (140% of OMV) and customs duty (31% of OMV). Substitution MRT & LRT Trains‚ Buses‚ Taxis Rental services •Avis •Budget •Hertz Force 1: Barriers to entry Barriers to entry measure how easy or difficult it is for new entrants to enter into the industry. This can involve for example: * Cost advantages (economies of scale‚ economies of scope) * Access to production inputs and financing‚
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“competition in an industry depends on five basic competitive forces”. As seen below in figure 1. Figure 1. Threat of new entrants Porter (1980:7) states that there are “six major sources of barriers to entry”; economies of scale‚ product differentiation‚ capital requirements‚ switching costs‚ access to distribution channels and government policy. “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
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The Five Competitive Forces That Shape Strategy by Michael E. Porter Comments (143) RELATED Executive Summary ALSO AVAILABLE Buy PDF Editor’s Note: In 1979‚ Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor‚ Michael E. Porter. It was his first HBR article‚ and it started a revolution in the strategy field. In subsequent decades‚ Porter has brought his signature economic rigor
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1. Bibliography of Michael E Porter Michael E. Porter is the Bishop William Lawrence University Professor‚ based at Harvard Business School. A University professorship is the highest professional recognition that can be given to a Harvard faculty member. Professor Porter is the fourth faculty member in Harvard Business School history to earn this distinction‚ and is one of about 15 current University Professors at Harvard. Professor Porter is a leading authority on competitive strategy and the
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STRATEGIC MANAGEMENT INDUSTRY ANALYSIS NOTES STRATEGIC ANALYSIS: INDUSTRY ANALYSIS “When an industry with a reputation for difficult economics meets a manager with a reputation for excellence‚ it is usually the industry that keeps its reputation intact.” Warren Buffet DEEPAK DATTA UTA MBA 2011 DKD Strategy Analysis Mission Goals and Objectives External Environment Internal Environment The Strategic Management Process Strategy Formulation Business-Level Corporate-Level Strategy
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Delta Airlines Board of Directors Presentation October 18‚ 2013 Consultants: General Overview of Delta Airlines Strategy DELTA’S CURRENT STRATEGY COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing‚ but still below cost of capital Consolidation trend has reduced rivals helping profits Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions‚ on-time arrival rate and
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through these natural resources are unrenewable and limited‚ there are other mining companies producing them and these resources are undifferentiated from other companies products. This makes the buyers have high level of negotiation. However‚ the switching cost for the buyer is extremely high once the two parties sign the contract. That could reduce the level of negotiation a little bit. On the other hand‚ the product the buyer purchases from the mining companies represents a large fraction of its
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The bargaining power of customer is high because they can cheaply and easily change. The demand is very elastic and the information is not asymmetric. First because the market is price in-elastic. The change in the price of the product does not cause a significant change in the demand of the product. And also because most of the products are standardized‚ it is difficult to respond to consumers requirements in constantly innovating and creating additional value. Consumers have more choices but
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is slow * Fixed costs are high * Products are largely undifferentiated * Brand loyalty is largely insignificant * Consumer switching cost is very low Moderately Intense Factors: * Two of the largest competitors (Home Depot and Lowe’s) have equal market share and the remainder is consumed by a host of small competitors * Exit barriers are fairly high Interpretation: Highly Intense * This makes the
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