Lenovo

By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the

Other areas that affect new entry into a market include capital requirements, economies of scale, and brand identity. All of these factors have been discussed to some degree under other

Firms trying to enter the market find it very difficult to compete against the kind of control that the top four companies have over this industry. Another example of an entry barrier is technology (Topher). The major companies in this industry are constantly developing new products, which makes it almost impossible for a new firm to come up with its own special product (Topher). The huge amount of money required for advertising is a final barrier faced by entering firms (Joy).

Catherine, W., Tat Pui, L. and Henrik, U. (2011) The Roles of Branding for a Brand Entering

simplicity of market entry: Advances in telecommunications, computer technology and transportation have made entry into foreign markets by

The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing

Barriers to entry - Sunk cost, technology, economies of scale, limiting pricing and brand loyalty of incumbents can all be barriers

„« Barriers to entry are typically high, it requires a very large amount of money and expertise to enter the industry. The industry is consolidating not growing.

Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.

Factors affecting the ability of new comers to enter the market include capital requirements and cost of fuel, economies of scale, access to channels of distribution, constraint of brand equity, threat of M&A and regulation on Maritime cruises.

Barriers to Entry: The entry barriers in the market are relatively low, making it easy to access. However, as the market is saturated it could be unlikely for new companies to decide to start new enterprises in this field.

Entrants erode the market and rarely grow it enough to the incumbent’s advantage. New entrants have an impact on the industry business but at a moderate level. This is mainly because new firms will find it difficult to compete against the incumbents’ strong brand, like Starbucks and McDonalds, and because the market is saturated. However, the costs of entry are relatively low. Most of the raw materials are cheap and the distribution chain is not complicated. This makes it easy for new companies to enter the market. Also, established companies might leverage their brands as they enter the industry to compete against the incumbents.

The main issue is: The product manager is having a difficult time to create a finalized marketing plan for Sony’s new VAIO laptops. The heart of the issue is the manager can doesn’t know which segment to target for the VAIO; due to, too much information. In December Sony encourage to all product managers to use a new corporate study that segmented consumers on a global level. The important question for the product manager, is does this global research help me better understand the consumers in China? And if yes, does it give more knowledge of the segmented groups in China that I can target for

New Entrants: The possibility of New Entrants is supposed to be Low. The reason for this is that the entry barrier is very high in this segment, as it requires a huge amount

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