The order of competitive forces from strongest to weakest in Porter’s five forces model are as follows: Potential Entrants – Substitutes- Industry Rivalry- Buyers- and Suppliers. I believe that potential new entrants help liquidate the pay day market which might drive demand down in individual stores (the entries to barrier are extremely low 135k for startup), followed by substitutes such as credit cards offered by Providence (which were marketed towards unbanked costumers), current industry rivalry also proved to be a competition force that affected individual pay day locations (similar reason to new entrants). 3. What are the driving forces that are currently affecting the payday lending industry? The driving forces that are currently affecting the payday lending industry are entry or exit of major firms, regulatory influences and government policy changes, marketing innovation, and lastly changing societal concerns and attitudes.
Consumers are having their choices restricted as these chains grow and branch out to retail parks. I aim to discuss the zero sum game as there is concrete evidence for this against the the big supermarkets, I will also look into how this big supermarkets have affected how we shop, and how they have grown as big as they are now. A zero sum game is a situation in which one party's gain is balanced by another party's loss. If you subtract total losses from total gains, they sum to zero. ( making social lives 2009 p70 ).
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
As stated in extract 1, it tells us that the goods we import are not made in the UK and so makes it impossible to replace the imports, therefore meaning that we still have to import goods, despite the high prices due to the low exchange rate of sterling. This is partnered with the fact that some suppliers (shown in extract 1) have agreed long term supply contract with cheaper overseas suppliers before the depreciation of the sterling and so they are now paying high prices. This may mean that these suppliers may have to increase the prices of these goods, therefore leading to cost push inflation due to trying to maintain a decent profit margin in the hope the demand for the good does not drop dramatically. However, it is stated that there still may be a large price differential with countries such as China and India, even after sterling's depreciation. On the other hand however, as stated in extract 1, line 8, volume of good imported has also increased by 16% and inflation has continued well above target.
Butler-Adams is aware that the new management system has cost a lot of money to the debt-free company, while facing competition from rival firms, which manufacture bikes of the same quality with higher production and much lesser production cost. However he considers investment in research and development a way forward to compete with their competitors by improving the quality of their product. Moreover, in contrast to their competitors, the cost of their production is much higher as they are based in London compare to their rivals who benefit from low wage structure of Taiwan. However, they are not willing to move their base anywhere else as the Brompton bicycle was named after the place, which is situated in London. Further on he talks about how they don’t want to weaken their brand by making a large quantity of bikes with no quality, as they are famous for advanced quality.
In a monopolistic competitive market profit is important. When a firm first enters a monopolistic market they can act like a monopoly until others join in the market which will lead to competition for lower prices. Kudler Fine Foods will compete with other fine foods for lowest prices on their goods; however, they have to make a profit in order to stay in business. In the short-run Kudler will have more profit, but in the long-run the profit will decrease to other competitors in the
I. Introduction a. Ben & Jerry’s Homemade was on the table for takeover by other firms; specifically four, Dreyer’s, Unilever, Meadowbrook Lane and Chartwell. With the increased competitive market and declining financial performance, takeover bids were coming in. Co-founders Ben Cohen and Jerry Greenfield knew that in order for B&J to maintain its social stature, it would need to remain an independent company; but chief executive Perry Odak felt that the shareholders would be best served by selling the company. II.
The report will detail possible strengths and weaknesses of recommended courses of action and how a marketing plan would contribute to the company’s business objectives. 2.0 BUSINESS OBJECTIVES Kingsford charcoal forms a large segment of the Clorox company portfolio, and a decline in overall sales contributed to low stock value for the parent company. The Kingsford brand has proven strong in both market magnetism and competitive advantage, however, outside competition in aligning markets have avowed the need to ‘invest to grow’ the market and improve position or face a formidable future of deteriorating sales. The objective here is to increase profits for the Kingsford company. 2.1 BUSINESS STRATEGIES Increase overall company sales and profit by investing time and resources in growing the market and developing new opportunities for consumers.
Prior to polices established by Law of Commerce Henkel Iberica participated in aggressive pricing to increase market share. The consequences of this were a negative effect on margins, contribution margins, and profits on sales. To contend with its competitors, Henkel invested in promotions and additional product mix to increase sales, but due to lack of accuracy in long range forecast it was often left with either over stock that is difficult to reallocate or loss of sales due to out of stock products which eventually led to a decrease of net earnings in sales year before. Accurately forecasting demand is the key to every strategic, tactical, and operational decision designed to keep our business competitive. Obviously it is evident that Henkel Iberica current process isn’t working due to challenges of forecast exactness and demand variability for all the products it offers.
He mentioned traders not being able to hold on to their goods so they were able to negotiate better prices. Instead, they had to take whatever little money they could get because of their need to survive. This then would result in the wealthy traders having the upper hand and controlling the markets (162). A contemporary example of this would be my EBay business. I purchase coveted limited-edition items and post my listings until the other EBay sellers have ran out of stock.