Industry Analysis : Organic Chemical

Suppliers generally have a moderate to high bargaining power within the industry due to the limited number of suppliers which forces aviation companies to choose from the number available and accordingly to accept their prices. In fact, fuel is the second highest cost for aviation companies. There are highly depended on supplier’s prices and the availability which indicates on a relatively high bargaining power of suppliers. In addition, there are high switching costs which are strongly in favor of the suppliers and means that the company experiences an increase in operating costs when switching to another supplier as flying another type of aircraft leads to additional costs (maintenance, training etc.).Aircrafts are vulnerable to delays due to the location of gate locations which leads to a decrease in utilization and therefore to an increase in costs.

The Bargaining Power of Suppliers (Moderate): Most of the industry’s products are sourced and manufactured by a network of third parties. The supplier group is diluted compared to the industry; KMD alone has over 45 suppliers. There is credible threat of suppliers adopting forward integration resulting in loss of major suppliers and emergence of new competitors for the industry. Highly effective and specialised products will pose high supplier switching costs for industry firms.

Purpose: To use indicators to test for the presence of organic compounds in certain substances.

3. Do you expect this profit level to continue in subsequent years? Why or why not?

Bargaining power of supplier: High levels of competition among suppliers act to reduce prices to producers. This is a positive for Ford Motor Company. Standardization of parts allowed Ford to reduce dependency on fixed supplier/vendor which goes into producer’s favor.

Bargaining Power of Suppliers: A producing industry requires raw materials - labour, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits. Tesco maintains direct professional business relationships with all their suppliers of organic food and non-food product worldwide. They also conduct supplier viewpoint surveys to find out what their suppliers think of Tesco.

Various important approaches like engineering driven approaches and selection of supplier processes lead to the number of suppliers at premium prices. It reduces cost of

What driving forces do you see at work in this industry? Are they likely to impact the industry’s competitive structure favorably or unfavorably? (Did we answer this question?)

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

The Competition: Suppliers need to be able to keep costs down, in order to keep

There are many different suppliers for the different types of product lines. This makes it easy for companies in the industry to secure a supply. As Corning is a large company, it is able to negotiate good prices from suppliers. There are many suppliers that are willing to cooperate with Corning because they can earn substantial profits from Corning’s businesses.

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

Bargaining power of suppliers is low due to large number of suppliers of raw materials, low switching cost and availability of attractive substitutes. (Jim Wilkinson, 2013) Therefore, we could control the price of raw materials because we can easily switch to different suppliers with lower price and higher quality, increasing our profit consequently.

For example, Boeing and Airbus supply most commercial aircraft. The concentration within the suppliers segment of the industry makes it very difficult for competitors to exercise leverage over another supplier and obtain lower prices. The power of the supplier is one key in prohibiting the ability of competitors to earn higher profits.

Organic compounds are, by definition, any chemical compound containing carbon. These compounds include carbohydrates, polysaccharides, lipids, proteins, and nucleic acids. Each one of these compounds has a different purpose. Carbohydrates give energy to cells when consumed. Lipids are basically the fats of a cell. Proteins are the building blocks of muscle in a cell. Nucleic acids are used to transfer genetic information from one cell to the other.