Case Study: Notion Ink Is All About Realizing Dreams

Therefore this industry is a pretty good one to already be in, but would be very tough to try and break into. Since established firms do not have to worry about threat of entrants or substitution, they can focus on making their core business practices cost efficient and profitable. Although firms have to deal with high buyer and supplier power, every firm has to deal with these issues. Therefore this leaves only rivalry to compete on, which forces firms to stay sharp, observe the competition, and provide excellent service to the firm’s customers to generate profit.

Successful firms capitalize on economies of scale & scope, create management structures and invest in research & development

This project is a continuation of Project 1, FRM Consulting Inc. An additional 11 months have passed since Project 1 (we are now at June 30, 2013 the company’s yearend). The friends have expanded the shop to include sales of electronic tablets. The new company name is FRM Consulting & Sales Inc.

It is also important to consider the MACRO environment whilst planning for future areas for development as these factors can have an impact on possible training. PESTLE is a useful tool to enable us to do this. PESTLE assesses the market, including competitors, from the standpoint of a particular proposition or a business. PESTLE becomes more useful and relevant the larger and more complex the business or proposition, but even for a very small local business a PESTLE analysis can still throw up one or two very significant issues that might otherwise be missed.

The framework used in this note is organized around the estimates of industry demand, market share, costs, and performance. All data

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

Entrants erode the market and rarely grow it enough to the incumbent’s advantage. New entrants have an impact on the industry business but at a moderate level. This is mainly because new firms will find it difficult to compete against the incumbents’ strong brand, like Starbucks and McDonalds, and because the market is saturated. However, the costs of entry are relatively low. Most of the raw materials are cheap and the distribution chain is not complicated. This makes it easy for new companies to enter the market. Also, established companies might leverage their brands as they enter the industry to compete against the incumbents.

Speed to Market : The Company identified Speed as a means of attaining competitive advantage in the market. The rapid pace of technology shift meant that the company needs to adapt to changes and bring forth the innovations to succeed in the market.

|the industry and its challenges it is important to understand its various phases of growth so far. |

Producers typically focussed on a portfolio of product shapes within a single segment to carve niches in a broad industry. This focus strategy protected capital investments in a capital intensive industry. The industry was capital intensive because (i) lumpy and expensive capacity additions, (ii) cost structure was significantly changed only

Capital Intensive: The new entrants faces high start-up cost and will take them long time to improve manufacturing efficiency. NutraSweet since an incumbent, had process improvement and capital investment in

Often time, new players brings new resources which can force product price down and as well reduce profitability of the industry (Mann & Byun 2011). Therefore, incumbents on the defending side raise the threat for new players. The existing retailers safeguard their position by aggressively expanding their production differentiation in the aspect of brand loyalty, brand identification, customer service, quality and advertisement. By so doing the existing firms can achieved significant economy of scale. Once achieved, it would be difficult for new players to immediately start benefitting for the economy of scale. For instance, observation shown that the reason companies like Hermes international, Chloe, Burberry and Luis Vuitton enjoyed lower cost per unit is because they have large production volume with efficient technology. In the case Hermes international, its control about 75% of its value chain. See appendix xxx. Moreover, wide geographical

About 80% of the organized market is shared by the top 4 players of the industry. The high growth rate in the industry seen in the recent past would probably provide growth opportunities to all players of the industry. But, the competition would increase as the market gets saturated. In both categories, companies in the organised sector focus on brand building. Higher pricing through product differentiation is also followed as a competitive strategy.

Investing in research and development to create new product line or enhance current products adds considerable expenses. Development costs will need to be re-cooped. This will keep competitors in check, but will be challenging to keep pricing competitive.

Before an organization or investor makes a strategic decision to enter a product in today’s economy, a thorough market analysis is vital to fully comprehend the domestic and international demand, current suppliers, entry and exit barriers present, and cost of production for the product or service being provided. The culmination of this investigation identifies the market structure the product resides in, associated potential long-run profitability, cost efficiency, survivability, and incentives for future entrepreneurs. This paper will describe the characteristics of four such market structures: perfect competition, monopolistic competition, oligopoly, monopoly while providing an illustrative