Strengths And Weaknesses Of Stylish Products Design Essay

innovative products but functional products because it offers great variety and low profit margins. In

competition, both in attributes and in products. In order to supply an attribute that no

market, there is price competition. This can lead to price wars and, therefore, lower prices for

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

Competition within the industry as well as market supply and demand conditions set the price of products sold.

The majority of products offered by industry members are commodities and are weakly differentiated which increases rivalry.

Competition serves as an effective mean for businesses to identify ways to improve product quality, charge lower price, and to increase efficiency. Business that can offer the highest product quality at the reduced costs will succeed in a

Competition is a good thing for many reasons, it guarantees the best products at the

Competition in the local areas – As stores are in rows joined onto other businesses it is predictable that someone else in the area is selling the same or related product therefore it puts pressure on the business to overcome rivals and attract more customers.

As number of firms in the industry keeps increasing, greater competition force firms to earn more market share, innovate substitutes, produce differentiate products and be cost leadership to keep or improve their position in the industry. For example, some of the products of Billabong and Quiksilver are similar, consumer will choose to buy the one with lower price if they have similar function, or buy the one with higher price if the product is different from others. Thus, a firm could run well if it has different products and lower cost compared with rivals.

They compete on marketing expenditures, pricing, product offerings, cost of production, technologies, and customer service (Fernino et al., 2013).

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include:

Competition within the industry as well as market supply and demand conditions set the price of products sold.

IDEO is one of the most successful product design companies in the world because of their innovation, creativity and systematic approach to developing products. They use an innovative 5 step process to creating new products.