Home Appliance Case Study

1275 WordsMar 22, 20136 Pages
Q1. What are the Industry’s Dominant Economic Traits? Industry’s Dominant Economic Traits | Features | Questions to answer | Market Size & Growth Rate | U.S is the largest producer of Home appliances in the world. U.S Home appliances industry is in the phase of Maturity. There are four major firms in Home appliances industry in United States. in 2002 there are 74.5 million units. Dollar volume had been growing at an annual average rate of 1.9 percent since. | Scope of Competitive Rivalry | As major home appliance industry became increasingly global it became difficult for global and domestic major home appliance companies to survive independently in the competitive environment. | Number Of Rivals | Major rivals who…show more content…
| Product supplied | Commodity | | 2 | | | | Specialty | Similarities in products so they can easily switch to other if they increase the cost | Switching cost | Low | 1 | | | | | High | Buyers can easily switch to other products if low cost. | Profit earned by buyer | Low | | 2 | | | | High | Company is getting less profit and providing more discount to customers | | | | | | | | | | | | | | | | | Overall Industry attractiveness | | | | | Factors | Unfav | Neutral | Fav | | | | | Entry Barriers | | | * | | | | | | Exit Barriers | * | | | | | | | | Rivalry among existing firms | * | | | | | | | | Power of buyer | | * | | | | | | | Threat of substitutes | | | * | | | | | | Q3. Identify forces likely to exert greatest influence over next 1-3 Years? (Please note the Drivers of change are few usually not more than 4 factors). Your Drivers of change must point out. i. Are driving forces acting to cause demand for product to increase or decrease? The driving forces increase the market demand for product because of emerging
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