However, it is important to recognise that the competition in luxury fashion is not based on price but rather on image perception and brand value and quality. It could be argued that competitive rivalry is slightly lower in emerging markets because of their recent development and the slower entrance of key players in this industry. Potentially, this can be offset by the competition of local fashion retailer. Bargaining Power of Buyers Luxury brands have all individual consumers to sell to globally but also in a given country. 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.
Question 1: Despite its growth and size, why is Inventec not very profitable? Inventec is not very profitable due to: 1. Extensive industry competition: a. ODMs are fragmented. There are many existing large ODM competitors such as Asustek, Compal and Quanta who all have larger economy scales than Inventec in terms of their sales revenue. Meanwhile, as OEMs tend to primarily outsource ‘commodity technology’, EMSs and ODMs are increasingly competing for the same client base.
Additionally, the author describes that hiring only those with good looks can run into antidiscrimination problems. Greenhouse concludes by suggesting that hiring for image leads to the increased prices of product, increased sales of products, and can give the impression of authenticity which eventually leads to what businesses want, profit. Whether retailers should hire only who project certain image it might be morally wrong or not is a provocative question. After considering the evidence presented in Greenhouse’s article and my own experiences, I can fully support retailers company hire only attractive applicants. I am opposed to companies hiring applicants based on their physical appearances in part because hiring good looking people is an advantage to the company, it shows how people are treated differently based on their appearance.To illustrate, Mr. Serrano, a former Abercrombie and Fitch employee emphasizes that, “We were supposed to approach someone in the mall who we think will look attractive in our store.” (p2).
The competition in the market was very high amongst the already established brands and Schindler was yet to establish its brand name in the Indian market. 4) With the increasing import duties, outsourcing the production of the parts within India is a great plan,
We thought that Product Innovation was the most important key success factor along with quality, and global strategy. We didn’t think that cost competitiveness was that important because Nike, Under Armour, and Adidas aren’t a best cost provider in fact they seem to be a differentiated provider. We believed that Under Armour was better than the other companies in product innovation because of all their advanced moisture-wicking fabric. Global strategy was also really important to us because that company has to focus on other countries besides the one that it is in. And with Under Armour struggling with their sales revenue in foreign countries we gave them a nine compared to Nike that we felt was a ten because a lot of their revenue comes from other countries.
For the cinema market building something which can seat enough people with the right equipment (e.g. huge high definition screen with state of the art projectors) can be hard to create, due to high set up costs. Furthermore there is more to do, for example gain the rights to shoe new films, which can be very expensive unless you benefit from economies of scale. A natural barrier to entry is the exploitation of economies of scale, where the big firms in the business, in this case Vue, Cineworld and Odeon are using their economies of scale to deter any new entrant away. The top three firms have a relationship and power to obtain the viewing rights to screen 2”first-run” films and to do so at a lower price.
Reasons & Advantages The existing structure was increasing competition between Roche and Genentech as the product of the two companies were coming in direct competition with each other in multiple markets especially in US The existing ownership and operating model gave Roche little opportunities to address the increasing the overlap and duplication between these two firms (for example R&D work) The product licensing agreement between Roche and Genentech was set to expire in 2015. With the expiry of this agreement Roche will lose the right to develop and commercialize products of Roche which were major source of revenue for Roche After the expiry of the licensing agreement of product licensing agreement between Roche and Genentech a new arm’s length agreement would have to be negotiated where the product pipeline could be sold to the highest bidder Due to existing shareholding structure, in order to protect the rights of minority shareholders, Roche could not get access to intellectual property of Genentech High growth of biotechnology sector Not much innovation in Pharma sector which was leading to acquisition by larger companies leading to consolidation of industry Acquisition of Genentech will help Roche generate cost synergies of 60% of $750-850 Million by cutting costs and streamlining Genentech had large chunk of Cash ($ 9.5 Billion) which Roche could not access to ownership structure. The acquisition will provide a Roche access to this cash. Risks Possibility of Genentech’s scientists leaving the company due to the fear of loss of independence and entrepreneurial spirit of Genentech after acquisition by Roche Threat of potential intellectual property going out
Big companies try to capture the whole market, whereas small businesses target a specific niche. More importantly, there are a few dominant players (i.e. Nike, Adidas, Under Armour) that already have a significant grasp of the market. Since the sportswear industry is a mature market, companies try to expand their customer base by spending a large amount of cash flow on product innovation, advertisement, and sponsorship. The companies especially try to attract customers from competitors, making the competition even more intense
They have more knowledge and are able to choose the organisations that make the most value for them.. 2. Demand management As FedEx is a worldwide transportation company, they have different types of customers who can be divided as individual customers, small business and, large companies. FedEx’s main customers are multinational companies and international trade companies which require on time delivery, high quality, flexibility, and prompt service as they are high technique, and high value companies such as Del computer, Cisco system, and GM. They transport large quantities of products through FedEx. Organization customers can reduce the cost of distribution up to 20~30% via FedEx’s supply chain management system.
‘Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business?’ 2 Suggest how an organization can evaluate the impact of the Internet on its business. Is it a passing fad or does it have a significant impact? 3 ‘Similar benefits and barriers exist for the adoption of sell-side e-commerce for both B2B and B2C organizations.’ Discuss. 4 ‘In most countries the Internet will never be used by more than 50 per cent of the population, so its impact on businesses will be limited.’ Discuss.