Introduction Company G has long been a leader in quality household electronics. Now we have taken a step back to look at what else we can offer. With the Thermo-Go Thermostat we are looking to help consumers be more environmentally friendly. The Thermo-Go allows consumers to log into their heating and cooling system remotely using their home WiFi connection. They can turn their system on or off, set it to heat or cool their home. The consumer can also utilize the ECO function by linking their GPS on their phone to their Thermo-Go account, and it will run only when they are home. There are many perks to the Thermo-Go Thermostat that will help our consumers same on their utility bills all year round. Product Description and …show more content…
The threat from competition will be high. Potential New Entrants: There isn’t an extensive time to market on the product nor would it be entirely difficult for another company to modify an existing thermostat to include the new, innovative smart features of the Thermo-Go. This will be a higher threat. Bargaining Power of Buyers: The thermostats will be available in retail outlets and will not be sold direct to consumers. There will be many retail outlets consisting of many different companies so the threat of buyer bargaining power is low. Bargaining Power of Suppliers: The component parts of the Thermo-Go are readily available from many different suppliers. There should always be a good, steady and affordable flow of raw materials to complete the product. As such, the bargaining power of suppliers will be low. Substitutes: There aren’t many substitutes for the Thermo-Go. There are generic thermostats in every home that control the heating and cooling. These must all be maintained manually and there aren’t other options. The threat of substitutes is very low. SWOT Analysis This section is designed to summarize the analysis in a table, followed by more detailed explanations of each item. Please see specific instructions in the four sections below the table. STRENGTHS *indicates core competency • Customer Focused* • Quality Driven* • Efficiency WEAKNESSES • Suppliers • Product line •
Threat from New Entrants There are currently no new threats from new entrants in this market. Company G’s technology, testing and production process that is very efficient for profitability cannot be easily replicated.
There is a threat of bargaining power of buyers as there is a lot of competitors, which give the choice to convert from one chain to another. Moreover, chains are working strongly in the promotion, price, opening branches everywhere, developing the product, and cares regarding quality. It
This analysis should be presented in the form of a single essay, complete with a title page, an introduction, three body paragraphs (purpose, approach, and effectiveness), a conclusion, and a full References page.
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.
Bargaining power of buyers is medium-high because of the low switching costs and wider spectrum of similar products selling at competitive prices due to the influence of developing countries
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.
SWOT analysis provides a structure for analyzing either your own strengths and weaknesses, and the opportunities and threats you face, or in a work context for analyzing the strengths, weaknesses, opportunities and threats a business or event faces. Ideally it is one step in a process which helps you to
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses, and the opportunities and threats that the company face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you will giving you the opportunity to ward off possible threats from external sources.
information in the analysis. The Appendix to this teaching note contains a discussion of these
The bargaining power of supplier is how easier it is for suppliers to drive up prices. As the company acquired the company of previous supplier, Importadores Neptuno, who manufactured several critical subcomponents for the Adventure Works Cycles product line, the bargaining power of supplier is low the company as the company can acquire supplies at low cost. The ownership of the company also means that the company can demand the required
The bargaining power of buyers stands in a direct relationship with the bargaining power of suppliers. If the bargaining power of buyers is substantial it increases the opportunity cost of suppliers. The greater the buyers concentration the greater their bargaining power. This bargaining power is also increased in markets where the suppliers’ concentration is high. The bargaining power is also increased when the cost of switching from one supplier to another is low. In instances where backward vertical integration is possible i.e. buyers setting up their own chains of suppliers the bargaining power of the buyer increases in that their prices may become more competitive. In a market where the buyers are more concerned over quality than price their bargaining power decreases as they are less inclined to shop
The remainder of the paper will tackle the details behind the various analysis and our findings, along with any recommendations for management.
The content of the section was reviewed by the authors, from which a number of observations were made.
In conclusion, it can be said that suppliers have medium to high power. Although there are many suppliers, there are only a few well-known trusted suppliers that most sellers would prefer to