Marketing Strategy –Strategic Position Assessment

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.

Threat of New Entrants - The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include:

Power rests with the suppliers in the form of price and quality of supplies. Suppliers can increase the price or lower the quality of their goods and services. The power of supplier in the Indian airline industry is immense because of the three major inputs from the supplier are all affected by the external environment. These 3 factors and the power of supplier for each component is explained below.

2. What do the results say about how firms in this industry can deliver strong financial returns in different ways?

Potential for new entrants - The primary prevention to entrance are higher barriers within industry with the threats of new entrants as competitors (Porter, 1998).

Suppliers have less power because there are a lot of suppliers and they all willing to accommodate and provide discounts for their customers (economies of scale).

A. Stability: the firm should focus on incremental improvement of functional performance. The firm can also increase efficiency and reduce costs in order to counter the current economic slump they are in.

Our California Institute of Advanced Management consulting team (BECK Consulting) looked into many different areas to gain helpful insight and information for Song & Meng, P.C. Our BECK Consulting group focused on four key areas: online marketing strategies, offline marketing strategies (specifically

Market entry risks such as cultural differences, competitors, legislation, transportation issues, infringement of intellectual property rights and copyright.

•Monopolistic competition- When an industry contains many rival firms, each of which has a comparable but at least slightly different product. Restaurants, are an example, all serve food but of different types of food and in different sites. Manufacture costs are above what could be attained if firms sold equal products, but consumers have an advantage from the variety.

• • Barriers to enter Factors affecting the barriers to entry are: – E Economies of scale i f l – First mover advantage – Relationships with suppliers and customers – Legal barriers

The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.

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

4. It induces monopolistic trend in the business, due to which prices may be increased artificially and supplies withheld.

What is important here is the number and capability of the competitors – if there are many competitors, and they offer equally attractive products and services, then the business is most likely to have a better power in the situation. If suppliers and buyers don 't get a good deal from us, they ' will walk off elsewhere. Alternatively, if no-one else can do what we do, then we can often have tremendous strength.