Fy17-19 Case Analysis

• Tremendous price and wage competition in a recurring industry will lead to additional losses in profits.

* Failure of key information technology or process; including customer facing and privacy disruptions and disruptions in the interconnected retail strategy.

From this section you will be able to see how to solve the problem and what the action plan might look like.

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

Threat of new entrants: Intensified price competition as new entrants sought their share of mature market had negative effect. However, high capital requirements positively affect Ford Motor Company. High capital was allocated for research and development which was and advantage against new entrants.

On the other hands, business will do what they can avoid profit loss; this could increase competition. Increase in sales from the

Another change could be mergers and take-overs which can sometimes leave employees feeling uncertain about their future with the company, loss of trust and experience staff leaving.

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

Potential threats could be government regulations, external business risks, rising cost of raw materials, an increase in labor costs, tax changes, price changes, growing competition and lower profitability.

NIKE, Inc.'s profit margin has remained consistent when comparing FY12 to FY14. In FY13, however, it decreased by 40 basis points, which can be explained by two things: First, in FY13 demand creation expense rose by 5% against FY12. This was "mainly driven by an increase in sports marketing expense, marketing support for key product initiatives, [...], as well as an increased level of marketing spending around global sporting events such as the European Football Championships and London Summer Olympics." Second, in FY13, "operating overhead expense increased 13%, primarily attributable to increased investments in [NIKE, Inc.'s] Direct to Consumer operations, higher personnel costs, and corporate initiatives to support the growth of [NIKE,

Economic: The industry’s performance is highly tied in with the economy. A weak economy will mean weak sales.

Market risk: Due to increasing competition the market demand fluctuates every minute, it mainly increase the uncertainty of consumer preferences which also leads to improper forecasting and thus increases the risk in whole supply chain. (Bin Liu, 2012)

Nowadays, new or existing companies are struggling to survive in the market because they face clearly drastic competition than ever before.

If an industry is profitable, it will become a magnet to attract more competitors looking to do same business with us. If it is easy for these new entrants to enter the market, this poses a threat to the firms already competing in that market. Threat of new entrants is one of the forces that shape the competitive structure of an industry (Marc, 2014). A high threat of entry means new competitors are attracted by the profits of the industry and can enter the industry easily. New competitors entering the marketplace can make the market share and profitability of existing competitors more threaten cause the existing competitor to make some changes to existing product quality or price levels. A high threat of new entrance can make an industry more competitive and decrease profit potential for existing competitors whereas a low high threat of new entrance can make an industry less competitive and increases profit potential for the existing

* Environmental factors also include local and global competitors. With the advent of globalization. There has been a substantiate increase in these competitors