forces Threats of Substitutes (Low) Product that able to represent other product function can be defined as substitute product (Wheelen and Hunger‚ 2002). Currently‚ there are no perfect substitutes for airline service‚ as airline service has the best range of destination‚ time-efficient and convenience. However‚ the fact that trains and air-transports are substitute is true‚ but the threat will only be high if it’s applied in domestic travel. Currently‚ the threat of substitutes for airline industry
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’s proprietary knowledge | h | 0 | | Incumbent ’s access to raw materials | h | 0 | | Incumbent ’s access to government subsidies | h | 0 | | | | | Threat of a Substitute Product | Rate of improvement in price/perf. relationship of substitute product | H | 1 | | Profitability of industry producing substitutes | L | 0 | | Switching costs for the buyer of a product | L | 1 | | | | | Power of Buyers | Concentration of buyers relative to industry members | h | 1 | | Volume
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to consumers requirements in constantly innovating and creating additional value. Consumers have more choices but less differentiated products. Products of substitute is low. Except fixed line phone there is limited number of substitutes. The substitutions is created through additional functions and features. The most recent substitutes are the notebooks but even these products do not have the same finality than phones. New entrants have low influence. It is difficult to enter this market
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2)Product differentiation‚ 3)Cost disadvantages independent of size‚ 4)Access to distribution channels‚ 5)Government Policy. Threat of substitute products or services The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. For example‚ tap water might be considered a substitute for Coke‚ whereas Pepsi is a competitor’s similar product. Increased marketing for drinking tap water might "shrink the pie" for both
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customers. This good reputation seems the existence of barriers to entry ‚compare with new entrants. * Industry profitability: demand for such products is seasonal‚ and its marketing efforts are typically concentrated around tax preparation time‚ and during that time‚ Intuit always make many promotion and advertised it products through a number of marketing efforts‚ such as web marketing‚ mail‚ television ads. As a new entrant‚ it is hard to share the market with Intuit. Threat of substitute products
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Case study - Group 8 EXECUTIVE SUMMARY: DR PEPPER SNAPPLE Following analysis performed for the external and internal environment‚ we have identified various important aspects that need to be considered while shaping the overall strategy for DPS. First of all‚ our internal analysis surfaced an important weakness of DPS; 40% of DPS’s distribution strat egy depends on its competitors. This creates strong dependence on the competitors for the company to prosper‚ which limits their competitive capacity
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Category Attractiveness Template | | | | | | | | |Factors |Analysis |Assessment | |
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Brandon Deonath Add maths SBA Mrs. Ramnarine 5s Title: To find the maximum volume of a box using the method of differentiation. Problem statement: Mr. Lee‚ owner of a private cake company‚ sells a square 5 inch cake in a box made from 50 x 50 cm sheets of material. He would like to put a bigger square 8 inch cake in a box made from the same 50 x 50 com sheets of material. He decided to use the method of differentiation to help him with his task. Method: 1. Three squares measuring
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be used by yourself as well as with a group. You can use it‚ for example‚ when brainstorming to stimulate new ideas. SCAMPER is an acronym: S – Substitute C – Combine A – Adapt M – Magnify/Minify/Modify P – Put to other uses E – Eliminate R – Reverse/Rearrange The
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indifference curves cannot cross. 2) Suppose that current and future consumption are perfect substitutes. The indifference curves will consist of parallel lines with the negative slope m‚ where m > 0. a) How does the marginal rate of substitution between current and future consumption relate to the geometry (i.e. the slope and the intercept) of the consumer’s indifference curves? b) Given perfect substitutes‚ is more preferred to less? Do these preferences satisfy the diminishing marginal rate
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