Cruise and Sales Managements

The bargaining power of the supplier is affected by the rise in investment avenues, provider of funds, interest rate and the economic outlook.

The bargaining power of suppliers is low because of the presence of powerful buyers who are able to direct terms to the suppliers who are generally small firms. Besides these suppliers of tires, parts, electronic, mechanical equipment are small players and may have only one or two clients (ancillaries).

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

Threat of New Entrants - The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include:

Power rests with the suppliers in the form of price and quality of supplies. Suppliers can increase the price or lower the quality of their goods and services. The power of supplier in the Indian airline industry is immense because of the three major inputs from the supplier are all affected by the external environment. These 3 factors and the power of supplier for each component is explained below.

2. What do the results say about how firms in this industry can deliver strong financial returns in different ways?

As a result of these reasons, we see that a new entrant would face significant barriers to entry.

Suppliers have less power because there are a lot of suppliers and they all willing to accommodate and provide discounts for their customers (economies of scale).

A. Stability: the firm should focus on incremental improvement of functional performance. The firm can also increase efficiency and reduce costs in order to counter the current economic slump they are in.

Substitutes: This is a huge factor in the industry. There are substitute for food and even restaurants. Since Jamba Juice offers drinks these can be substituted with soda or alcohol, or even the same juice from one of Jamba Juice’s competitors. Competition also plays a role in the price of the product. If competition increases, price can decrease. In another words, substitution is available. Buyers would face no uncertainty when switching to different product. Substitutes satisfy price and value. (Financial Alchemist)

Market entry risks such as cultural differences, competitors, legislation, transportation issues, infringement of intellectual property rights and copyright.

•Monopolistic competition- When an industry contains many rival firms, each of which has a comparable but at least slightly different product. Restaurants, are an example, all serve food but of different types of food and in different sites. Manufacture costs are above what could be attained if firms sold equal products, but consumers have an advantage from the variety.

The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.

A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of

Supplier power is higher when buyers have fewer choices as to what they can buy. As mentioned previously the amount of suppliers has increased. All an individual has to do is form and agreement to sell products for the company. Customers can allow a webmaster such as Amazon to earn money by recommending products from others. This increases supplier offerings.