Threat of New Entrants: (“The high quality labor intensive creative and technological excellence, was difficult to scale due to scarce talent in marketplace and conflicting client needs”, p.1, para 2). From the above statement, it would be fair to infer that in the digital marketing industry (particularly in case of HUGE), economies of scale is nonexistent. Hence, there is no cost advantage that comes with volume. There are however a few barriers to entry for new entrants because of the “network effects”. (“JetBlue put Huge on the map and increased its credibility as a partner for larger business issues”, p.6, para 3).
Project 2 Methods of Sale Private Treaty Auction Tender Auction Many people go for Auction because roughly 90% of agents will recommend it if you don’t have another preference. Agents prefer Auctions because this is the easiest and fastest method for them to make a sale and get their commission. Many sellers also choose Auction because they hope they can get a much higher price than the property is really worth. This is rarely the case. The truth is that properties that do well at Auction would have sold well with any method of sale (provided you have a skilled agent representing you) because they are usually very good properties.
Threat of New Entrants is weak. Entry barriers are high because of the economy, significant experience-based cost advantages, other cost advantages held by industry members (e.g., access to inputs, favorable location), brand loyalty (which comes from membership and other services), strong network effects and high capital requirements. 5. Substitute Products or Services is moderate. Warehouse clubs like a magnet for customers and pulling them away from other traditional retail channels such as supermarkets, department stores, drugstores, office supply stores, consumer electronics etc… All three warehoused club rivals - Costco, Sam’s and BJ’s – have similar strategies: Low prices, low operating costs, geographic expansion – Costco; Sam’s Club concept is to sell merchandise at low profit margins, which means at low prices to members; and BJ’s offers brand-name merchandise at prices that were significantly lower than the prices found at retail, supermarkets, dept.
These cameras bridge the gap between the entry-level cameras and the pro cameras used by professionals. A little more functionality, a little more money, but more appeal as well. The Pro-Sumer cameras, aimed towards advanced amateurs, are the mack daddies of the camera products. Speed and a hefty price tag leave this to the people who are serious about their photography. Some people lean toward Canon because it is such a prominent name in the industry although Nikon has done a great deal of work to ensure their name is at the top with Canon.
Meanwhile, as OEMs tend to primarily outsource ‘commodity technology’, EMSs and ODMs are increasingly competing for the same client base. b. Low switching cost for OEMs. OEMs often contract manufacturing partnerships among many other ODMs. The switch is easy and cost-efficient.
When you enter to a casino the slot machines are filling much of the space, as far as the eye can see. This and the fact that they are really easy to play makes the people really attracted to them. In addition technology has contributed to preserve the success of the slot machines, mainly because they are faster and you can play more games in less time and the fact that you can pay with credit cards and not with coins. The reason that make attract people is not different from the horse racing, the chance of winning money is what moves people to gamble in this machines. The games generally has a huge amount of money as a jackpot.
German technology is always at the forefront of their competitors and their standards are very high. In the other hand, Chrysler engines are known for being low cost but sometimes are not as reliable after a certain number of miles. These failures have been justified by Chrysler over time by the engines economic prices. By identifying that the future of the industry would be in emerging markets, their needs became a priority. Hence the idea of a small, economical engine is born, so the joint venture between BMW and Chrysler sounded very reasonable.
Most of the time the prices are higher than the rest of the other companies for product, but Zappos offers their customers a different experience. Zappos is able to maximize profits in this market because this company figured out how to dominate with their morals they have created. Zappos focused on how to provide wowing services to online customers. This is a company that knows they have to constantly change and embrace it. Zappos owners wanted his company to be fun and weird, making sure to stay adventurous with an open mind.
The first red flag would be that they are competing with huge computer companies that can have anything a customer needs readily available to ship. While Keystone seems to be doing a great job keeping up with the demand of certain products, they are forced to charge the customers more money for those products. While this has not currently affected them, it could in the future and could eventually be a problem for them. Another thing is that although business is booming right now, computers businesses do very well when the economic conditions are good. There are reports that say the economy will grow over the next few years (2010), but there is a possibility that they could be wrong and that won’t happen.
However, due to the higher prices, there is a certain segment to which these brands can appeal to – this strengthens the power of the buyers. Because of the high competition and many brands within the industry – there are low switching costs for the buyer. This is complemented by online shopping, which means that the retailers do not even need to be physically in the same place. This lowers the switching costs for the buyer and increases their power. The rise of the ethical social consumer and the information availability that came with the internet made the buyer demanding and less likely to develop loyalty towards a brand – this increases their power.