For the cinema market building something which can seat enough people with the right equipment (e.g. huge high definition screen with state of the art projectors) can be hard to create, due to high set up costs. Furthermore there is more to do, for example gain the rights to shoe new films, which can be very expensive unless you benefit from economies of scale. A natural barrier to entry is the exploitation of economies of scale, where the big firms in the business, in this case Vue, Cineworld and Odeon are using their economies of scale to deter any new entrant away. The top three firms have a relationship and power to obtain the viewing rights to screen 2”first-run” films and to do so at a lower price.
This means that they could adopt a computerised accounting system to deal with financial transactions and many staff can help them do this these transactions. Computerised Accounting system can benefit them because they can do all their calculations in the computer which helps them to do their work quickly. Rumble is a small business so they will have less staff. On the other hand If Rumble did not have many staffs this means they won’t need to adopt a computerised accounting system because it is too expensive and also manual accounting system could help them instead if they had less staff. In this case Manual accounting system is easier for them to handle with their calculations through sales day book, petty cashbook and cashbook.
The kiosk was the other method that had good results but was also expensive when you see the total cost. Western Washington seem to have better results for hiring when it comes to referrals and kiosk but spend a lot of money on both. Eastern Washington division differs from western when it comes to its recruiting methods. The eastern division results show that they only used media, referrals, and kiosk methods. More people applied using the media, but
However, that market is high competitive and almost commodity-like. Company A would need to consider reducing its labor force or even moving its operation to low cost-region in order to be competitive in the iPod/iPhone headphone market. Another new customer group is the people who use noise-cancellation headphones. There are limited players in this market. Also, the quality of noise cancellation headphones vary a lot and the customers are willing to pay higher price for good product.
In regards to competing with external companies, it is not the most expensive brand in the market. Ideally this would help it sell more; however, the pricing strategies of private labels that sell for much less have taken up 25% market share. Scope should act quickly to prevent further loss of market share to these companies. Listerine, whose mouthwash is more expensive, has managed to reach many customers by providing different coupons and promotions for their product. This suggests that Scope lacks a strong promotional strategy since its market share continues to diminish while Listerine’s grows.
As known that Costco is focusing on high quality of merchandises at relatively low prices, they have one condition in order to purchase merchandises at low prices, which is number of purchases. For example, to have one product that is cheaper than competitors they have to purchase more from original manufacturers. Therefore, Costco realized that they have to keep the sales volume to be high so they are still able to maintain this advantage. Because of this, they try to keep their slogan in customer minds that Costco has lower prices and they try to same membership money. However, there is a problem that Costco has to deal with is that their profits mostly from its membership fees instead its net income.
Under Ulrich, the strategy has been to differentiate their brand by providing high-quality, fashionable merchandise at low prices. However, with the economy in financial mayhem, consumers are spending a lot less than in the past. Target, like many other retailers, may be faced with several significant issues in the near future. Target Corporation
Threats: variation in raw material prices, raise labor costs, raise in substitutes, change in customer tastes, lower market growth and strong pricing pressure from competitors. Porter five forces: Supplier Power: More supplier are there in this industry, so less supplier power. Campbell can get raw material at low cost from suppliers. Buyer Power: Campbell is a big company, they buy large amount of raw material from buyers so buyer power is strong. They can bargain for low cost.
Redbox is in a highly competitive environment that is evolving quickly. Redbox differs in this competitive market because it offers consumers convenient, quick, and hassle free access to affordable movies. Compared to Netflix and Blockbuster, Redbox offers more physical locations as well as the lowest price available to rent a DVD or Blu-ray in the very competitive marketplace. Redbox, Netflix, and Blockbuster represent the major market share holders but the movie industry has a bigger connection with direct competitors as well as new entrants and suppliers and other substitutes. New entrants would consist of GameFly and Blockbuster Express.
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient