Sbm Plan Step 1

Topics: Competition, Customer service, Force Pages: 3 (672 words) Published: July 8, 2013
Convenience :
We construct a spacious, modern and safety. Moreover, facilities are convenience, comfortable, good environment that make student feel cozy. In there have some clubs ( English, baseball,..) and entertainment (swimming –pool) and library and canteen and free wifi. Cost is inexpensive Using 5 forces model help to determine the …..

Threat of new entrants:
Low : the threat of potential entrants into the rental industry is extremely low. Because opening a modern dormitory need a largely capital –intensive process. This requires large funding acquisition and a big amount of cash on hand to begin business. With this barrier to entry, small firms will get big difficulty to gain market share. To persuade customer accept a new rental service, new entrants often need to provide incentives in the form of price discounts, promotions, and cooperative advertising. Such expenditures is also a barrier by reducing the profitability of themselves Threat of substitute products or services

High : there are a lot of competitors in rental industry. This has caused consumers to view the services offered by room rental service companies as commodities because of similar prices and services. Consumers can also rent normal room, small room as a place of living instead of chooses our service. The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. This force creates disadvantages for our service. Price and demand becomes more elastic because customers have more alternatives. Bargaining power of customers

Medium to low: the bargaining power of buyers can be classified as medium and high because it is largely dependent on the buyer’s financial resources. Our dorm is in center of City that is very convenience for people who want to move around such as supermarket, school, shopping, park, eating delicious food. Moreover, our dorm also nearly International schools where almost rich...
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