Mktg 303

Strength: 1) Product range 2) Brand name 3) Product quality | Weakness: 1) Inventory cost 2) Unstable supply 3) Labor retentions | Opportunity: 1) High growth 2) Low Inflation 3) Political certainty | Threat: 1) Strong competition 2) Regional disparity 3) Reduced tax benefits |
Sources of competitive advantage: Market position:

porters

-The internal rivalry:
-Identify competitors: -firms making the same product or products to the same customers at a similar products to the same customers at similar prices, -firms making products that supply the same service.
-Measure the intensity of rivalry: -number of existing competitors, -the industry growth rate, -the degree of product differentiation, -industry cost structure, -exit barriers, -excess capacity.

-Deter the new entrants:
-the established brand/reputation
-existing relationships with buyers and distributors
-location advantages; access to raw materials, gov favourable policies.
-the experience curve as an entry barrier; the learning effect, -scale economies. -Threat of substitutes: -substitutes vs complements; substitutes increase the intensity of rivalry; DVD adds pressure on all existing VCR manufacturers substitutes increase the bargaining power of buyers -seemingly strong substitutes may pose little threat if they are prices too high -Bargaining power of suppliers: -suppliers can squeeze industry profits if; -suppliers are concentrated and there are few substitutes (monopolise/have greater bargaining power) -suppliers pose a threat of forward integration (becoming distributor/retailer downstream) -their customers are locked into relationships with them; highly specialised investment leads to high switching costs
-supplier power should not be taken synonymous (equal) with the importance of an input to a firm -Bargaining power of buyers: -buyers have strong bargaining power if; -buyers are