The 3d Industry Is Capital Intensive

1310 Words6 Pages
Date:
12th February 2016
CEO:
Ayush Mehta
Group No: 3
Group Members:
Mitul Goel
Devanshi Raval
Rohith Balaji

Threat of new entrants

The 3D Industry is capital intensive. This may act as a barrier to small and medium sized entrepreneurs. There are several compliances that are required from the industries such as under employment laws, the company many not be able prevent other companies from benefiting from some of their former employees; failure to comply with U.S. Foreign Corrupt Practices Act and other legislatures may result in fines, criminal penalties and impact the goodwill of the company; and subject to a large number of environmental laws pertaining to compliance. These laws indirectly act as a barrier of companies to enter the market. There are several other barriers such as limited mobility of operations due to manufacturing facilities, default in payment by customers could lead to loss of huge account receivables which could impact the operation of the organisation; and disruption of information technology systems or breach of data security could adversely affect the business. These may be serve as deterrents for new entrants from entering the industry.

Bargaining Power of Buyers

Stratasys Ltd have customers worldwide, but due to high competition in the industry buyers tend to have a high bargaining power because there are more varieties of the product available in the market and this industry is more of technology and price oriented which leads to
Get Access