Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet. Never the less one of the biggest aspect for their sudden popularity was that celebrities where seen In superstyle cloths. Using famous people is one of the best marketing tools you can use, as potential consumers might be attracted by their appearance and style. Especially young people, which is superstyles target consumer, is attracted by
The movie into instant-delivery movie rentals has made it so that a lot of companies cannot enter into a lucrative industry without high fixed costs. Due to the centralized organization of online entertainment companies, there is an economies-of-scale effect even for relatively new companies as compared to their brick-and-mortar competitor’s such as Blockbuster. Due to the low cost for business to enter this industry, there are a lot of options that consumers may choose from when looking to purchase movie rental products. With companies such as Apple and Amazon entering this marketplace, the consumer’s bargaining power is extremely high and results in a lot of price competition between companies. The threat of new entrants into this industry is extremely high due to the low amount of capital needed to enter into the industry as compared to others.
Through arrangements with suppliers, they are able to offer a large inventory of loose diamonds at low prices. Until a customer orders a stone, Blue Nile does not have to purchase it. Besides being able to have small inventories, this set up allows them to be paid by the customer before they have to pay suppliers. Using this cost saving supply chain also gave them the advantage of being able to set a markup price lower than competitors. The nature of their business model enabled them to enter the fairly new online market and compete based on lower prices.
Tanglewood department stores are a moderately sized organization that has a strong growth potential. Tanglewood is going up against large-scaled, well-known department stores, and they are holding their own. They have a positive revenue growth of 4.2%, more than Dillard’s, JC Penny, Sears, Target, and WalMart’s revenue growth. Tanglewood’s employee growth of 3.75% is also beating out the other department stores, all except JC Penny. In order for keep the company’s current growth to continue, the staffing levels and qualities are going to have to be re-evaluated and changed when needed.
Compare this to its main rival’s trade prices, Apple currently trading at $ 587 per share, Oracle at $28 per share while Google is trading at $582 per share. It makes Microsoft an affordable stock with their stability, we expect the price to continue to rise in the future given their stable revenues and continued innovation. The table below shows Microsoft’s price movement for the past 10 years. Microsoft's Stock analysis 60 50 40 30 PRICE(IN USD) 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 [Microsoft’s end year share price for ten years] Courtesy :( www.nasdaq.com/symbol/msft/stock-chart) Microsoft Corporation has also had great financial results over the past ten years even though the share prices tell a different story. This can be shown by illustration in the table below which shows its annual revenues against the income.
MODELS Five-Forces Model of the On-Line Retail Jewelry Market NEW ENTRANTS SUPPLIERS BUYERS SUBSTITUTES INDUSTRY RIVALRY Summary of the Competitive Nature of the Industry Generic Strategy Model Narrative summary of model analysis results Company Value Chain Narrative summary of model analysis results: Indicate which segments are most important and most costly and discuss the significance of the situation and what should be done. Competitive Strength Assessment Weight Blue Nile Other on-line only Major Chains Breadth of product line .15 Reputation/ Image .25 Quality/appeal of product offerings .15 Caliber/completeness of product information .15 Relative Cost Position .10 Customization capabilities .10
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.
I believe that Mel Green’s marketing experience will result in revenues far greater than the $20.000 used in the proforma profit and loss account. 3. Concentrating on the wholesale business will increase revenue without increasing labour and overhead costs significantly. 4. Both stores are located in prime locations and offer high visibility, closing any of the two stores will lead to a loss of the competitive advantage these prime locations affords the business.
Blue Nile Case Study How strong are the competitive forces confronting Blue Nileand other online retail jewellers? Do a fiveforces analysis to support youranswer. I) Rivalry among online jewelers (Figure 3.4 P.57)a) Rivalry among various online jewellery retailers is centered on;attractive price, selection and variety of products, the calibre andtrustworthiness of the information/guidance provided to online shoppers(education information, in dept product information, access to professionalgrading reports. ), Research links with Google and other browses.B) The strength of the rivalry among online jewellery retailers is affected by;The Online jewellery segment of the overall retail jewellery industry is rapidlymaturing, this will increase rivalry. Buyers have low switching cost, it issimple for consumers to find and visit competitor websitesthis increasesrivalry.
|FIGURE 1: Porter’s value chain |FIGURE 3: Apple SWOT Analysis | |FIRMS INFRASTRUCTURE |Strengths | |Top-down management structure from North America through defined set of cultural values |Weaknesses | |7 key product lines servicing different markets spread out over a PLC | | |5 territory segments that are all steadily growing , Europe faster than others |Strong brand (grown by 32% to $83.2b) voted 3rd most valuable brand in the world; | |Revenue is steady and above industry average – a key competitive advantage |leveraged to provide competitive advantage | | |Customer loyalty to brand (strong value proposition) | |HR MANAGEMENT |Innovator with first mover advantage | |Large workforce of 34,000 permanent & 2,500 temp staff; invests in training retail staff to deliver great customer service; |Good internal HR processes –