Marketing Major, Management Major

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.

In this instance, consumers would spend a greater amount of time researching the various competing brands before settling on a purchase. Products that fall into this category are computers, hand-phones, refrigerators etc. For me, this would be for skincare. If I had to switch from Brand A to Brand B,

These days, people understand the value of college. Without a college degree, people will have to work harder to earn more money. However, the challenge many people face is determining what degree to pursue. Many people choose to go to college for a business degree, but are business degrees in Las Vegas worth the time and money investment?

This customization means that different Android™ phones can have widely varying user interfaces. Most smart phones — including those using competing operating systems — offer similar overall capabilities, however, including Internet browsing, personal information management, video streaming, and access to a large repository of freeware and pay ware applications”(WiseGEEK.com). “Apps and Games: Your favorite Angry Birds are free on android. Nothing like jail breaking is required to run apps from unknown sources. Keyboard and touch interface: If you don’t like the android keyboard you can choose from a variety of third party keyboard from the market, Screen size: Samsung Galaxy S II: 4.6 inch, Your Choice of Carriers, you can run android devices on any network.#6) Voice Commands, Google’s Voice Actions perform great, Google has bought Alfred to improve the voice commands, Android devices: Third party cloud storage, external storage (SD card up to 64GB), File sharing and Connectivity: Android devices: Wi-Fi, Bluetooth, 2G/3G/4G LTE/ HSDPA (7 mbps), You can customize you home screen, the interface in an android to the fullest”(GEEKinc.). One of the Newsiest Droids is The Motorola Droid Maxx which delivers astonishingly long battery life, a big, colorful screen, and a durable, attractive design. The phone performs inventive tricks such as responding to voice commands,

•For suppliers: The company does not ask so much money for what they sale and can give more money for what they want.

The strong competition among rivals pursuing a similar strategy is vastly based on product differentiation and a niche market attraction, as companies are constantly working to surpass their competitors and seek to provide just what certain consumers want.

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

Using the product/market expansion grid shown in Figure 2, apply the growth opportunities available to managers in Starbucks Turkey.

Low product differentiation and economies of scale: There isn’t much product differentiation at play in the retail industry as there are well known manufacturers whose products are offered for sale, which leaves price to compete on. Current well established retailers with thousands of stores enjoy the economies of scale to control their cost that a new entrant might not be able to replicate after immediately entering the industry.

On the other hand, prices are the most insignificant buying criterion in High End, Performance and Size segments. No matter how high the prices are, customers in these segments are more preferable to high-tech product. In particular, for the High End and Size segments, ideal position occupies 43% and products’ ideal age is 29%. Furthermore, reliability is the most important consideration to customers in Performance segment. Hence, Niche Differentiation is a proper alternative for these three segments.

As such there is no brand loyalty, however all the major players are know for their reliability and for a new entrant to establish the same will take a lot of time. There won't be any cost advantage factor as the hub-and-spoke model, used in this industry, can be implemented by new entrants. Economies of scale will not be in favor of the new competitor as the initial volume would be low. Switching costs are not high in this industry.

Therefore this industry is a pretty good one to already be in, but would be very tough to try and break into. Since established firms do not have to worry about threat of entrants or substitution, they can focus on making their core business practices cost efficient and profitable. Although firms have to deal with high buyer and supplier power, every firm has to deal with these issues. Therefore this leaves only rivalry to compete on, which forces firms to stay sharp, observe the competition, and provide excellent service to the firm’s customers to generate profit.

- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently

Differentiation can be achieved in a variety of ways: unusual features, responsive customer service, rapid product innovations, technological leadership, perceived prestige and status, appeal to different tastes, and engineering design and performance. Methods of controlling costs, however, may be limited. The ability to price differentiated products competitively will be important for reducing upward pressure on customer prices so that they do not exceed the level customers are willing to

➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.