...attractiveness of an industry for organisations in terms of profitability in their immediate environment. Using the forces in this model we can analyse how attractive the UK Supermarket industry is to enter, the 5 forces are as follows. The threat of potential new entrants Barriers to entry in the UK supermarket industry relies on the entrants capability of matching capital requirements of existing firms, the UK supermarket industry is dominated by firms known as Tesco, Asda, Sainsbury’s and Morrison’s (Big 4) owing up to 69% of market share in the UK. Looking at the experience curve (1960: Boston Consultancy Group) A new entrant would have to achieve the economies of scale needed to achieve cost parity with the big 4 and compete on cost advantage. In the supermarket industry achieving economies of scale is not on production but other factors such as efficiency, pricing, range of goods and value of products. Tesco for example have very low cost margins in comparison to the scale of their operations and distribution channels but they are able to achieve high sales because the convenience, range of products and different services they offer. Product differentiation is another barrier to entry, a new entrant would need to achieve and individual level of differentiation and attain an identity through promotions and costly advertising, total advertising costs for the big for in 2009 was approximately £140m. New entrants also face disadvantage in lack of expertise and knowledge of...
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...CASE #1 – The Marketing ProcessYou are to write a 5-8 page report that answers the following: 1. An orthopedic group practice has decided to develop a pediatric sports medicine program. Describe at least three potential markets for this new service. 2. Describe the possible barriers to entry and exit for a physician wanting to establish a solo practice in internal medicine. 3. Describe the possible barriers to entry and exit for a company offering a health club facility in the same building where employees work. 4. Describe the possible barriers to entry and exit for a tertiary hospital developing a coronary bypass program. 5. Assume you are hired to design a managed care organization (MCO) plan targeted to baby boomers in San Antonio, Texas, a city with a large Hispanic population. Describe at least three ways that the MCO can make this service offering unique to respond to the major demographic trends of today.The format of the report is to be as follows: * Typed, double spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format. * Type the question followed by your answer to the question. * In addition to the 5-8 pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date.NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills. | The assignment...
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...want to equalize the marginal product per dollar spend across all inputs? Sybil, would it be that the marginal/dollar spent and decision rule theory assumes that the firm's only goal is maximum profit. would it be at this point, competition has forced the price down to its minimum. All excess profit is squeezed out. The firms have been forced to be just the right size to minimize cost. The customer gets the most possible value per dollar spent? Does that make sense to you? (I try to help before Cramster) in case Cramster doesnot answer. 2. What are the barriers to entry? Describe two potential barriers in the pharmaceutical industry? What are some consequences of these barriers? To me, the barriers to entry are obstacles that make it difficult to enter a given market. The term can refer to hindrances a firm faces in trying to enter a market. . 1.The barriers to entry are extremely high in the pharmaceutical industry. Many of the top firms have "significant manufacturing capabilities that are hard to replicate". Also,In recent years, product liability for potential damages has become an increasingly important issue in the pharmaceutical industry 2.The other barrier is, factors that influence the success of many pharmaceutical companies are capital requirements and financial resources, regulatory policies, and research and development. All three of these factors can influence one another and a lapse in one area can be disastrous...
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...was concerned with the contents of hot dogs and this led to the federal governments of the U.S. and Canada to intervene in the industry allowing only “muscle meat” in the food products. Changes like this effect the entire manufacturing process. The meat now has to be more carefully separated and the additional machines or manpower is expensive. Also, the government imposed rules on calcium supplements added to one of the product lines forcing costly activities like re-sourcing and reformulating the additive. Government regulations will typically affect the value chain and companies should analyze the effects to ensure there competencies continue. The threat of new entrants to the hot dog business is unlikely because the barriers to entry are quite high. There are significant government regulations on operations. In addition, capital requirements would be in the multi-millions, distribution channels are difficult to enter, and overall, the industry is an economy of scale. Per the case, rivalry is very intense and retaliatory among the top two market shareholders. This...
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...Industry Competition 3 Chapter Outline 3-1 Industry Life Cycle Stages 3-2 Industry Structure 3-3 Intensity of Rivalry among Incumbent Firms 3-3a Concentration of Competitors 3-3b High Fixed or Storage Costs 3-3c Slow Industry Growth 3-3d Lack of Differentiation or Low Switching Costs 3-3e Capacity Augmented in Large Increments 3-3f Diversity of Competitors 3-3g High Strategic Stakes 3-3h High Exit Barriers 3-4 Threat of Entry 3-4a Economies of Scale 3-4b Brand Identity and Product Differentiation 3-4c Capital Requirements 3-4d Switching Costs 3-4e Access to Distribution Channels 3-4f Cost Advantages Independent of Size 3-4g Government Policy 3-5 Pressure from Substitute Products 3-6 Bargaining Power of Buyers 3-7 Bargaining Power of Suppliers 3-8 Limitations of Porter’s Five Forces Model 3-9 Summary Key Terms Review Questions and Exercises Practice Quiz Notes Reading 3-1 26061_03_ch03_p037-060.indd 37 1/10/08 7:01:36 PM 38 Chapter 3 T Industry A group of competitors that produce similar products or services. 26061_03_ch03_p037-060.indd 38 his chapter marks the beginning of the strategic management process and is one of two that considers the external environment. At this point it is appropriate to focus on factors external to the organization and to view firm performance from an industrial organization perspective. Internal factors are considered later in the process and in future chapters. Each business operates...
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...received even if it is only part of the transaction (CASH RECEIPTS TRANSACTION FILE) d. cash disbursement-all cash paid (checks even if it is only part of the transaction) (CASH DISBURSEMENTS TRANSACTION FILE) e. general journal – everything else (e.g., adjusting entries, closing entries, reversing entries and any transaction that doesn’t belong in the other journals. (GENERAL (JOURNAL) TRANSACTION FILE) F. payroll journal (all payroll transactions) (PAYROLL TRANSACTION FILE) 2. Record the transaction in the Ledger (general and subsidiary) i.e. POST Posting is equivalent to a (master) file update in a computerized (AIS), That is, the transaction in the transaction file are incorporated into the master file balances. General ledger (general ledger master file) Accounts receivable subsidiary ledger (accounts receivable master file) Accounts payable subsidiary ledger (accounts payable master file) Inventory subsidiary ledger (inventory master file) Payroll or employee earnings subsidiary ledger (payroll master file) (Your Waren case project also has a ) Fixed assets subsidiary ledger (fixed assets master file) Etc. 3.prepare a trial balance 4. Record adjusting journal entries Four types of adjusting journal entries i. Reapportioning recorded costs Template: debit expense Credit asset (or contra asset) ii. Reapportioning unearned revenues Debit unearned revenue...
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...Executive Summary This report suggests that mass car market is highly competitive and through proficient operational approach McLaren remained successful in eliminating all barriers to entry in mass car market.The successful merger of McLaren team with Ron Dennis’ Project 4 team in 1981 and itsstrategic alliance with Mercedes-Benz later in 1995 for supplying enginesprovided the group with a golden opportunity to establish itself on the global platform. McLaren was the first company to use carbon-fibre-composite in its road car designs, which has provided the company with a competitive edge in the mass car market. Continuous investments are made in R&D to produce high-performance road cars for its discerning customers. McLaren’s successful establishment in the mass car market signifies the effectiveness of its global business strategy. McLaren’s diversified business portfolio consists of McLaren Automotives, McLaren Racing, McLaren Electronic Systems, McLaren Marketing, Absolute Taste and McLaren Applied Technologies. McLaren has adopted related diversification to increase its growth rate and market power. There is operational synergy amongst the businesses in McLaren’s business portfolio.Vertical integration has allowed the group to increase its operational efficiency and profitability. McLaren Racing is the most profitable company in the portfolio and all the other companies in the portfolio are also making considerable profits. Core competences are the underpinnings of...
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...developed a framework that helps managers in this analysis. Porter’s framework, known as the five forces model focuses on five forces that shape competition within an industry: (1) the risk of new entry by potential competitors, (2) the degree of rivalry among established companies within an industry, (3) the bargaining power of buyers, (4) the bargaining power of suppliers, and (5) the closeness of substitutes to an industry’s products. A. Potential Competitors Established companies try to discourage potential competitors from entering, since the more companies enter an industry, the more difficult it becomes for established companies to hold their share of the marker and to generate profits. Thus a high risk of entry by potential competitors represents a threat to the profitability of established companies. On the other hand, if the risk of new entry is low, established companies can take advantage of this opportunity to rise prices and earn greater returns. The strength of the competitive force of potential rivals is largely a function of the height of barriers to entry. The concept of barriers to entry implies that there are significant costs to joining an industry. The greater the costs that potential competitors must bear, the greater are the barriers to entry. High entry barriers keep potential competitors out of an industry, even when industry returns are...
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...General Environment: • Cultural o Cultural trends play a major role in the consumer appeal of this industry. We go through phases of what sports are trendy. • Seasonal o There is a high seasonal influence on consumer buying. Summer products typically cost less than winter products. Sales during offseason offset sales revenue. Winter sales are higher during the holidays and prices of the products are higher. • Physical o These companies are very aware of their carbon footprint. They are all based on the idea of being outdoors and care about how their production activities are affecting the environment. • Legal o As with many companies, these companies need to be sure they are following policies that abide by labor standards, for example, child labor laws, workers compensation, and labor training. Five Forces: • Threat of Substitutes o Substitute products pose no real threat, as they are not able to maintain the same level of quality and performance of the products within the industry. o Substitute Prices Customers might be attracted to the lower cost of products from outside the industry o Substitutes performance and quality Performance expectations cannot be met by the industries outside of our own. o No switching costs There are few switching costs for the customer, thus making it easy to substitute the product, although customers are not willing to do so because of the lack of performance from substitute products. Those products that are capable...
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...companies. Fluctuations in oil prices directly affect Lego’s margin. Competitive Rivarly (pressure low): There is Best-Lock from Hongkong and Mega Brands from Canada. Both compete with lego by low prices. Lego has a strong brand image and brand loyalty among customers and can charge premium prices. Parents know Lego because they played with it themselves. As the parents are the ones who pay the toys and as they are the force that often decides over children’s playtime, they will be the ones who make children play with traditional toys rather than computer games. Lego has therefore a critical competitive advantage over its competitors, as they cannot look back on such a long history. New market entrants (pressure low): There are low market entry barriers. Lego’s patents expired and overseas competitors enter the market. As the oil prices collapsed during the financial crisis in 2008,...
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...7 世界杯 | 600 | 8 香港 | 557 | 9 中国好声音第三季 | 543 | 10 去哪儿 | 537 | 意见反馈 | barries to entry H&M的中文翻译_百度翻译 barries to entry H&M 进入壁垒的H & M fanyi.baidu.com barrier to entry是什么意思_barrier to entry的翻译_音标_读音_... 1. The barrier to entry into China is CHINESE GOVERNMENT itself. 进入中国的门槛正是中国政府自己。 来自互联网 2. The wall acts as a barrier to ... www.iciba.com/barrier_... 2014-03-24 - 百度快照 - 86%好评 barrier to entry 的翻译结果 --cnki翻译助手 barrier to entry 的翻译结果:进入壁垒||双语例句|英文例句|相关文摘... Brand Extension and Barrier to Entry:the Case of Chinese Daily Chemical Articles Indus... dict.cnki.net/h_521885... 2005-07-01 - 百度快照 - 87%好评 【barrier_to_entry】什么意思_英语barrier_to_entry在线翻译_有... 企业策略模式会预判出,此产业的优势可能既短暂又压力沉重:缺乏产品区别度,加上价格竞争激烈、进入障碍(barrier to entry)低,使它根本不值得人们自找麻烦。商学... dict.youdao.com/eng/ba... 2005-07-01 - 百度快照 - 86%好评 【barries_to_entry】什么意思_英语barries_to_entry在线翻译_有... barriers to entry 进入壁垒;进入障碍 barries to entry网络释义 障碍 独占市场的特点: 单一供给 厂商 ; 无相似替代品; 有加入产业的障碍(barries to entry)... dict.youdao.com/eng/ba... 2013-11-02 - 百度快照 - 86%好评 barries to entry是什么意思_barries to entry的翻译_音标_读音_... 必应词典为您提供barries to entry的释义,网络释义: 有加入产业的障碍;... ...的特点: 单一供给厂商 无相似替代品 有加入产业的障碍(barries to entry... cn.bing.com/dict/barri... 2014-05-05 - 百度快照 - 80%好评 求教这道经济题目怎么做关于垄断的_百度知道 1个回答 - 提问时间: 2014年07月06日 最佳答案: monopolistic firms的情况:There are many buyers and sellers in the market place. There are few barries to entry into the market and it is easy... zhidao.baidu.com/link?... 2014-07-07 - 百度快照 - 87%好评 ...
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...A Resource-based view of the firm Birger Wernerfelt THIDA TUN 132BAG23 “For the firm, resources and products are two sides of the same coin” is a famous sentence of Birger Wernerfelt’s paper called “A Resource-based view of the firm”. The paper elucidates the usefulness of the analysing firms from the resource side rather than from the product side. To explain under what circumstances a resource will lead to high returns, the researcher used Porter’s five competitive forces. 1. General Effect 2. First mover advantages- resource position barriers 3. Attractive resources 4. Mergers and acquisition In the paper, it is explained that first movers have advantages like gaining control of resources that followers may not be able to match. But these results are expected only if the strategy is successful. For first mover strategy, the success and the failure exits at different sides. It is a very dangerous strategy for the firm to implement, I suppose. There are so many firms who tried to use first mover strategy and failed. However, second mover strategy is quite a safe strategy comparing to the first mover strategy. Second mover strategy is the strategy that the company offers a product or service later than a competitor after learning customers' reactions and offer something better than its competitor. Because the firm starts offering the products after surveying the customers’ reaction, it has less chances to be failed. Although first mover strategy...
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...Strategy and Industry Analysis Threat of New Entrants: Cracker Barrel operates in an industry that is capital intensive, yet the barrier to entry in the restaurant industry is low. With low barrier of entry firms can enter at a high pace than other industries. Since 2007, over 1,099 full-service restaurants have entered the market. That is a 334% increase in little over five years. Even with the extensive legal barriers that the restaurant industry poses, these are not enough to detour new entrants. Cracker Barrel stays competitive in this environment by leveraging their superior distribution and leaning on their size to create a small edge through economies of scale. The later is not as lucrative within the restaurant industry, since the economic conditions have drove suppliers to diversify their buyer streams to hedge against a given firms collapse. This in turn, diminishes the ability of firms to create substantial economies of scale. Bargaining Power of Suppliers: The restaurant industry displays characteristics that support the notion of low bargaining power for suppliers. Cracker Barrel and other industry leaders purchase large amounts of commodities. With suppliers unable to differentiate themselves, their overall bargaining power is low. The only time suppliers have bargaining power in the restaurant industry is when a buy is dependent on a specific vendor for a high portion of their goods. Cracker Barrel falls into this category with its retail components...
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...Entry barriers on business. Barriers to market entry include a number of different factors that restrict the ability of new competitors to enter and begin operating in a given industry. For example, an industry may require new entrants to make large investments in capital equipment, or existing firms may have earned strong customer loyalties that may be difficult for new entrants to overcome. The ease of entry into an industry in just one aspect of an industry analysis; the others include the power held by suppliers and buyers, the existing competitors and the nature of competition, and the degree to which similar products or services can act as substitutes for those provided by the industry. It is important for small business owners to understand all of these critical industry factors in order to compete effectively and make good strategic decisions. "Understanding your industry and anticipating its future trends and directions gives you the knowledge you need to react and control your portion of that industry," Kenneth J. Cook explained in his book The AMA Complete Guide to Strategic Planning for Small Business. "Since both you and your competitors are in the same industry, the key is in finding the differing abilities between you and the competition in dealing with the industry forces that impact you. If you can identify abilities you have that are superior to competitors, you can use that ability to establish a competitive advantage." The ease of entry into an industry...
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...The Five Forces of Competition Analysis (Fill in the blanks – 10 points for each) Time allowed: 30 minutes 1. Threat of New Entrants: Barriers to _______. These barriers are high when: a. Economies of scale are ________. b. Product differentiation is ________. c. ________ Capital requirements d. ________Switching costs e. ________ Access to distribution channels f. Government policy ________. 2. Bargaining Power of Suppliers increases when: a. Suppliers are ______ and ______ in number b. Suitable substitute products are not ________ c. Individual buyers are not _______ customers of suppliers and there are ______ of them d. Suppliers’ goods are _______ to buyers’ marketplace success e. Suppliers’ products create ______ switching costs. f. Suppliers pose a threat to integrate ______ into buyers’ industry 3. Bargaining Power of Buyers increases when: a. Buyers are _______ and ______ in number b. Buyers purchase a ______ portion of an industry’s total _______ c. Buyers’ purchases are a _______ portion of a supplier’s annual revenues d. Buyers can switch to another product without incurring ______ switching costs e. Buyers pose threat to integrate _______ into the sellers’ industry 4. Threat of Substitute Products increases when: a. Buyers face _______ switching costs b. The substitute product’s price is _______ than the firm’s. ...
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