Part 1 1. Hymer 's barriers to entry- Obstacles a firm faces when wanting to set-up production overseas. These obstacles can include existing competition, Capital (having to do with start up operation and production), level of risk, and assimilation. 2. Location factor- low barrier to entry- Certain variables that effect the location of industries such as (but not limited to) cheap labor, regulatory environments, basic machinery (sewing machines), low required investment of capital, and a skilled labor force. 3. Fashion-basic (fast fashion)- Low cost/cheap/basic imitation of deluxe top of the line fashion. The bulk of the sales industry is in this kind of business. Relies upon niche marketing for increase in demand and turn-over (new seasons). Mostly replacement demand-but its more than that people want to look good! 4. Outsource- A company that outsources from another company does so when they conclude another company can produce something more efficiently than if they were to do it themselves. 5. Producer Driven Production Circuit- Producer-driven commodity chains, do not produce final product, often collaborates with other multinational firms. 6. Captive Suppliers within a Production Circuit- Small suppliers transactionally depend on large buyers. Suppliers face high switching cost. 7. "Washington Consensus" Macroeconomic Policies- Control in the interest rates within the federal reserve, aimed to managing spending, goal is to reduce social welfare
One barrier to entry in a market is research and development. Heavy investment into research and development from large firms can deter other firms from entering into a market. Research and development also goes into developing new products
Areas, such as land, crops, minerals, fixtures, and naturally structures define real estate. The definition of real estate is the purchase, marketing, and leasing of buildings such as residential, commercial and industrial properties are erected to house people, materials, and machinery.
-Barriers to entry include, high number of competitors, high exchange rate, high initial capital requirements, cultural differences among sales people (perhaps not as aggressive as in Canada, resulting in lower sales)
The word outsourcing can be defined in a numbers of ways depending on the type of service and the form of relationship with the supplier. Also referred to as contracting out or buying in. May be the delegation or handing over to a third party. Company to provide services that might other wise be performed by in- house employees. The term is increasingly used to refer to subcontracting of a set of functions or processes by one firm to another, or to a group of individuals.
• • 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
Cost factor is comprised of labour cost, transaction cost and information cost, among which the labour cost is the most important one. China, as the most populous country, owes abandence and cheap labour resources, which largely appeals to multinational companies as a kind of cost competing advantage. Besides cost factors, labor quality also directly affect the labor productivity. Especially in a host country, lower labor costs often means low labor productivity. the location with higher productivity and low cost is more attractive than those with low labor productivity and cost.
In conclusion, the switching cost is the source of suppliers’ bargaining power. But it is limited due to a large supplier group.
A common definition of outsourcing is the takes part of their business and give it to another company to complete. The main industries that take
Outsourcing alludes to pleasing or moving a section or the greater part of the organization day by day operation and business procedure to an outer business supplier. This organization has chosen to outsource administrations with the desire of getting a charge out of lower rates, better quality, and that feeling of securing a key edge over rivalry.
Suppliers depend on companies in the information technology industry, because IT companies are their primary customers. Due to the heavy competition among suppliers in the IT industriy, their bargaining power is low.
Entry barriers – conditions that make it difficult or expensive for new firms to enter an industry (government regulations, start-up costs, etc.)
Sales management is the discipline of maximizing the benefits a company and its customers receive from the efforts of its sales force (What is Sales Management?, n.d.). Different software and hardware produce an efficient structure that controls the sales persons and sales activities. Computer hardware refers to all the parts of the computer that you can touch. Such as monitors, keyboards, mouse, computer CPU, wireless routers, printers and etc. (Technology Tip Number 161, 2006). Software is a general term for the various kinds of programs used to operate computers and related devices (Rouse, 2006).
These constructs include firm's specific barriers, institutional barriers, foreign market industry barriers, and lack of government support. Foreign market industry barriers and lack of home government support were seen as factors distinguishing between successful and unsuccessful exporting firms.
Market entry of a new product is always a challenging task and the company must put measures in place to withstand the unanticipated challenges ( Peterson, 2012). To begin with, the product will experience tariff barrier. This is because the company is foreign to Thailand