Pinnacle Manufacturing Industry

A majority of the attractiveness stems from the abnormally low buyer and supplier power. However, this gain is offset by the current low barriers of entry and high competitive rivalry. In order to remain competitive, incumbents must (1) invest heavily in research and development, (2) secure technology via patents, (3) market heavily to monetize products, all of which will diminish bottom line results.

I would not purchase the stock of this company for a market price of $24 per share.

In business, dangers sneak every step of the way, contender advancements that debilitate the suitability of your items or administrations, new players in the commercial center, antagonistic patterns in product costs, monetary standards, loan fees or the economy. Toss in potential interruptions to supply chains that have been extended crosswise over a huge number of miles and nation fringes by globalization, and the open door for something to turn out badly is, without a doubt, troubling.

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

Marketplace, especially in technology business is growing fast and constantly bringing the new offers to the consumers. As a society we have an ongoing strive for newer and better things. It’s a part of the nature and it might seem like a race, but we tend to think that we can always have something improved. We get a phone, but the new model comes out a month later. We are most likely to go and get the new one, because it has more functions than our other phone. Do we really need that new phone? Probably not, but it’s the need for the newer and better things that will always be there and rule the marketplace. It is a great opportunity for the businesses to grow and to satisfy the consumer’s needs.

Several key points are presented in the article for how companies can be successful. The first, is that companies must be innovative and be willing “to change their core products or business models” (Bertolini et al., 2015, p. 90) to keep up with the change in the marketplace. This may require that they rebrand their product, or change their business

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?)

1. The accounts that may be effected by the risk would be revenue, and cash or accounts receivable.

Besides the failure in satisfying customers, Levitt explains industries may fail because of better substitutes. In the article, Levitt mentions about the failure of dry cleaning, electronic utilities, and grocery stores. Those industries fail because other companies research and develop better substitutes. According to Levitt, substitutes for dry cleaning are synthetic fibers and chemical additives. Substitute for electric utilities is power cell, and substitute for grocery stores is supermarket (Levitt, 2004). The failure of the three industries isn’t the same as the failure in satisfying customers and may happen naturally. The products that those industries offer are good and are able to build up into industries. However, as time passes, new technologies are invented and eventually put those companies out of business. By describing two kinds of failure in many industries, Levitt doesn’t only provide more information but also prevent possible arguments from other people.

We have to consider the industry sector, the stage of the industry life cycle and the

|the industry and its challenges it is important to understand its various phases of growth so far. |

New entrants in the industry that are battling to have a share of the market

Q1. Based on the 2004 statement of profit and loss data, do you agree with Water’s decision to keep product 103?

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there

Competition: As time goes on firms drop out until no one is producing the product.