Introduction
In each industry, the emergence of new company would create both compete and opportunities. As the market changes, forming responses or strategies would be taken into account to maintain market positions. The case that has been provided mainly described the situation with three incumbents and a new entrant. This essay will summarize the case, diverse three criteria that are relevant with BUSS5000 materials, evaluate responses of each CEO with these three criteria respectively, and finally present recommendations for Acme.
Summary of case study
The case demonstrates three main companies in Australian building products market, which refer to Acme Corporation, Shesright Pty Ltd, and Hammer & Tong. These firms concentrate on different segments and own different positions in this industry. As an Australian B2B company, Acme has been focusing on supplying materials to other companies. Moreover, another Australian firm Shesright plays an important role in its niche market by paying attention to trade sales. Furthermore, H&T, which is a Sydney-based French company, has been primarily focus on DIY segment with sourcing from France, and own stores and online services. Additionally, it has been indicated that a new company, Arrow, will be engaged into the Australian building products market. By providing lower price, Arrow may produce competition with those companies and other retailers. Under this circumstance, each CEO demonstrates various responses. Chris Maxim, who is the CEO of Acme, has considered that Arrow would lead to a pricing structure disruption and cause threat to other companies. Nevertheless, Shesright CEO Rupert Pubkin has claimed that their customer loyalty has been stable, thus the emergence of the new company would cause no threat for them. In the meantime, H&T CEO Hannes De Rigour believes that they are likely to become partners