The Ability Of Barton Engine Works : Influence Customers Regarding Its Brand

1736 WordsApr 14, 20167 Pages
From the case analysis above, the ability of Barton Engine Works to influence customers regarding its brand is decreasing. It seems like consumers are opting for other brands in the market as explained by Little Bill in his memo to his father. The fact that major small and medium-sized customers prefer the Japanese brand to Barton Engine shows that Barton is not controlling the market and has lost its ability in influencing customers to choose its brand. The forces that seem to be shaping the markets can be analyzed from Porter’s five forces. According to Porters five forces, competition in an industry can be analyzed through five critical forces including competition rivalry; in this case, the Japanese is the rival company. The second force is supplier power which examines the ease with which suppliers can influence prices in the market. This is usually driven by the number of suppliers and the uniqueness of the products (Porter & Heppelmann, 2014). The power is high in this case since the major suppliers are only two. The buyer power is also high. From the case analysis, it is easy for consumers to switch to other rivals like the Japanese. Also, dealing with few major customers like Mulch means that they have the power to dictate the prices (Magretta, 2013). The threat of substitute is high since customers are leaving the company to Japanese for the same product. These are the major forces that seem to be shaping their market. To market the firm and its brand, the most
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