INDIVIDUAL ASSIGNMENT ABDM3313 ENTREPRENEURSHIP Case 5.1 Panera Bread: Occupying a favorable position in a Highly Competitive Industry Program Finance and Investment Tutorial class Group 7 Tutor’s name Mr. Tang Jut Weng Date of Submission 8th March 2013 Student’s Name ID Number 1. Chan Shi Yoon 11WBD04413 Q1. How has Panera Bread established a unique position in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its
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efficient scales of production. 2. The competitive structure of the brewing industry using Porter’s five forces model. a. Risk of entry by potential competitors. New micro brewing companies have low barriers of entry. New micro brewing companies do not rely heavily on brand loyalty or economies of scale. Mass market brewers our faced with higher barriers to entry because of brand loyalty of customers and absolute cost advantages. b. Intensity of rivalry of previously established companies new
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Porters 5 Forces: Suppliers The bargaining power of suppliers‚ one of Porter‟s Five Forces‚ can have a significant effect on an organization. Suppliers hold power over a firm when they increase prices and reduce the quality of their product and the firm cannot use their own pricing to recover these changes in costs. Switching costs is the “negative costs that a consumer incurs as a result of changing suppliers‚ brands‚ or products”. Switching costs can represent a variety of things: time and
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Collectively‚ the Five Forces determine the attractiveness of an industry‚ its profit potential‚ and the ease and attractiveness of mobility from one strategic position to another. Because of this‚ the analysis is useful when firms are making decisions about entry or exit from an industry as well as to identify major threats and opportunities in an industry. Why do we use it? This analysis was originally developed by Michael Porter‚ a Harvard professor and a noted authority on strategy. While all firms operate
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Bargaining Power of Buyers * OEM’s High * In Replacement Market Moderate * Switching Cost Low * Threats of Backward Integration Low 15. THREAT OF POTENTIAL ENTRANTS * LOW‚ due to HIGH ENTRY BARRIERS 16. ENTRY BARRIERS * Highly capital intensive industry * Rs4bn for radial tyre plant with a capacity of 1.5mn tyres * Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres
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augmented in large increments which give increased incentive to win plane orders. Because of high switching costs for buyers‚ there is increased incentive to be the preferred supplier. Entry – Low threat to long run profits The high fixed costs (FC) and a long development period (5 yrs) create large barriers to entry. The FCs provide an incentive to sell at nearly any price with a positive contribution margin‚ making the entire industry less profitable. Airlines have a high cost of switching suppliers
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largest 4 firms in the industry. 3 A) ASSUMPTIONS OF MODEL The key feature of the Oligopoly market is that the market is dominated by few large firms. Oligopoly can be defined by the characteristic of number and size of firms‚ barriers to entry‚ product differentiation‚ control over price‚ selling activity and nature of demand. 1. Number and size of firms A few large firms dominate the market with maybe many other smaller competitors covering the rest of the market. “Standard economic
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............................................................6 Profits in Oligopolistic Competition……………………………………………………...7 Short Run………………………………………………………………………….7 Long Run…………………………………………………………………………..7 Demand Analysis of Coffee in India……………………………………………………...8 Conclusion………………………………………………………………………………....8 References………………………………………………………………………………….9 Introduction Coffee is among the most popular beverages consumed globally. In India‚ coffee consumption has
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Qustion1 Identify and explain the market structure in which the company is operating Pos Malaysia Market structure * Monopoly firm Introduction (Pos Malaysia) Pos Malaysia Berhad is Malaysia’s premier physical communications provider. Pos Malaysia also has a widespread network of 701 post offices all over the country‚ in addition to its network of mini post offices‚ mobile post offices‚ postal agents and stamp agents‚ making it one of the most extensive retail networks in Malaysia
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Thomas and Maurice (2010) describe various potential issues that can serve as barriers to entry into a particular market. A strong barrier to entry makes it difficult for a new company to enter into a market to compete against existing companies and produce a substitute product. The potential barriers are barriers from economies of scale‚ governmental or legal barriers‚ barriers of essential inputs‚ brand loyalties and consumer lock-in (Thomas & Maurice‚ 2010). The company chosen for discussion
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