The problems that may face Show Circuit are going to be overcoming objections to frozen dog foods, lack of appeal of frozen dog food and pricing. The will have to try and get it into all the major franchises, they are also going to have to change their marketing plans from show dogs and kennel owners to the average consumer. Even though Show Circuit has a successful history, they are still a new brand of food to the average consumer. The market is limited to the types of dog food that currently exist today. The market consists of three segments, Dry Dog Food that has a 65% share of the market, canned dog Food has a 15% share of the market and then dog treats contain a 20% of the market share.
Furthermore, all companies have capacity to compete. No switching costs and product differentiation raise the degree of competition because it is easy for them to go where the lowest prices are. This characteristic leads to price wars which is present in the industry. Industry growth is the only factor that lowers rivalry – growth is high with few stores opening so companies do not need to compete for market share. Power of Suppliers – Low There is low supplier concentration relative to the industry they sell to and a single supplier does not account for a large part of a retailer’s business.
Furthermore, by evaluating the markets 4 possible segments that could be targeted by the Zenith company, it had been recommended that the wet dog food category be explored as the target market due to its most profitable potential area. Consecutively, it has been also noted that the Bil Jac pricing strategy gains an advantage within the breakeven point analysis, where we were able to see that it would only take 30-50% of the wet dog food market to compensate for the company’s variable cost, leaving nearly half of the market available for profitable capital gains exploitation. Most importantly, if Zeniths Dog Food Inc. is aiming at continuing the marketing campaign of the Show Circuit frozen dinner nationwide, it would do so most efficiently by using the first, less costly advertising and promotional packages that mount to $430,000 in cost. Although the actual acquired market share of future Zenith Dog Food Inc, cannot be
They have a good variety of products to shop for. Wal-Mart has many competitors, but one of the strengths that the company has the ability to lower the prices for their customers need. Wal-Mart can be consider a unique store because of one special strategy that they have. The strategy consists of comparing the prices of the other stores, if the other store has an ad of a lower price than Wal-Mart, then they will give it to them to the same price. Many costumers is one of the plus that they give to Wal-Mart because this means that they don’t have to go store by store catching all the specials that they have.
Most jewelry stores’ prices aren’t greatly different from others’ and buyers have very little influence on prices due to the high cost of raw materials to make the products. Substitutes: Substitutes are a relatively strong force, since there are other companies who are willing to create same or similar jewelry at cheaper prices to undercut their competitors. Government: The government plays a smaller role since the UN restricts the diamonds being sold are mined without conflict (aka
In most cities, a few Wal-Marts can be found. Another advantage over the competition is being open 24 hours because most competitors cannot stay open as long. The competition at night may consist of select pharmacies and /or general stores, but they are usually more expensive and carry smaller selections. Wal-Mart notices all income levels shop for their necessities, but they want to revamp the look and provide an upscale appearance to attract all type of clientele. Wal-Mart’s has a competitive advantage because of their incredible logistics system.
Aesthetically they keep cost down by not going overboard with interior design and comparatively have low labor costs. The strongest competitive force is the rivalry among sellers, buyers and suppliers. The possibility of these large wholesale companies being affected by potential new entrants is quite low. Because we are talking about significant amounts of quantities, the wholesale club industry will not be impacted by other industries offering substitute products. I think Supermarkets have a minimal competitive impact because they try to reach a different target market, even though Supermarkets and the wholesale club industry both carry similar products.
There was not one dominant player within the industry; they were more equally balanced thus increasing rivalry. The High fixed cost for running a discount store resulted in an economies of scale effect, this can be seen when Wal-Mart decided to gain economies of scale by building their own distribution centres to add value. Going public in order to finance the extra storage was important for Wal-Mart to utilise capacity as efficiently as possible, they did this by creating distribution hub around 15-20 stores. The increased rivalry continues, this was due to the low levels of product differentiation and little in the way of own branding, products were standard in nature through all discount stores. Also the low switching cost and consumer awareness of shopping around to find the best bargains increased competition around stores to capture customers.
Instead of purchasing pets from pet stores there are several alternatives options to getting a pet such as going to the animal adoption shelter or directly researching and contacting the breeder rather than going through a middle person. Part II: Anti-Thesis Mostly people buy pet from the pet store is because they are convenience and get all the supplies with the puppy all at once. Usually the pets from the pet store came from reputable breeder. So, people can save some times by not having to do as much research. One of the pet shop owners, Andrea Bertero, states “People think you can stop a puppy mill by taking it out on a pet store, but you can't," (Stuenkel).
More people can be fed at a lower cost when using factory farming, but it may not be worth the harm it causes the animals, our environment, and possibly our food. Factory farming started to be able to feed our growing population in a more cost effective way. It was great to be able to feed the growing population of the world in a quicker way than what was happening before. Along the way the treatment of the animals has gone down as well as the quality of the food. “Researchers concluded that the current animal food industry is quite simply unacceptable due to its effects on humans, the environment, and animals raised for food.