Using a leisure market of your choice, discuss the extent to which it may be considered to be an oligopoly. An oligopoly is a market that is dominated by a few firms who have a high concentration ratio. Oligopolies frequently maintain their positon of dominance in a market because it is too costly for potential firms to enter the market. This is called barrier to entry, and due to this they can earn supernormal profits (see figure) as they can protect themselves from competition in the long run. For the cinema market building something which can seat enough people with the right equipment (e.g.
DEVELOPING PROFITABLE CUSTOMER RELATIONSHIP. It is a challenging time for most business leaders today. Leaders are demanding their company’s grow and so marketers are continually focused on driving their products and services into the hands of new customers. Unfortunately this intense focus on attracting new customers has taken attention away from established or past customers. It is measurably more expensive to attract a new customer than to retain an existing customer.
This phase also heightens the threat of substitutes and mergers and acquisitions are common place. Rivalry among competitors is fierce as they seek to consolidate their position. Prices at this phase can also fall, putting a strain on profitability. From the case, we can see that low growth and stable profit margins are key characteristics. Despite overall stability in profit margins, due to the intense competition, earnings of individual firms can be volatile.
The major causes the larger business failure are the overexpansion. Many entrepreneurs with successful small businesses make the mistake of overexpansion. Fast growth often results in dramatic changes in a business. Thus the entrepreneurs must plan carefully and adjust competently to new and potentially disruptive situations. 6.
Off-the-shelf software is cheaper than developing custom software. Conversely, due to Boeing’s massive scope and size, outsourcing certain elements would be inefficient. Outsourcing payroll or sales force management with 158,000 employees in 70 countries would be an extremely difficult, let alone expensive, task. Processes like payroll and sales force management often require much human interaction in order to work properly, so outsourcing these elements could create major roadblocks for employees and employers alike. On the other hand, why would Boeing develop in-house some of the software applications used in conjunction with its products?
However, this was a problem because some of the products needed more DL or OH available to them. Furthermore, because of this, the proportion of DL used to the proportion of direct machining used for each component weren’t the same, though they were are all being charged at the same rate. Shifting from labor-intensive testing to a more advanced machine-based testing system caused this single cost pool system to become obsolete, and was also expensive due to the cost of these advanced machines. This costing system drove up prices for customers so Seligram feared it would lose business. 2.
Threat of the new entrants: Industry with higher returns would attract many new entrants which would increase the competition and reduce the profitability of existing players. In this sector margins were very high with Calyx &
Situation Analysis Five Force: The force of Supplier is powerful, they sell raw materials at a high price to capture some of the industry's profits. The force of customer is powerful, too. Our auto-producing customers have the erratic production schedules. The competitive also struggling with earn decrease and production decrease. The threat of the substitution and new entry are weak.
Technology Risk Presentation Tammy Radcliffe XACC/210 • Limitations of Technology for E-Business System Technology is crucial in the daily operations of any business. Production of services is related to the technology used and it encourages an increase in productivity. Upgrades in technology gives an organization advantage to the competition. This could be cost effective to the organization compared to hiring new employees and paying high salaries in the long run. Technology has had several downfalls as well.
E) a small percentage of companies in the industry are currently earning above-average profits, entry barriers are high, and buyers are not brand loyal. 7 INCORRECT Which of the following conditions generally raise the barriers to entering an industry? A) Low levels of brand loyalty on the part of customers and the presence of more than 20 rivals in the industry B) Rapid market growth, low buyer switching costs, and weak brand preferences and customer loyalty C) Product offerings that are pretty much standardized from rival to rival D) High capital requirements, difficulties in building a network of distributors-retailers and securing adequate space on retailers' shelves, and the likelihood that industry incumbents will strongly contest the efforts of new entrants to gain a market foothold E) The industry is not characterized by scale economies and/or sizable learning/experience curve effects and few firms in the industry hold key patents and/or possess significant proprietary technology not readily available to a