Threat Of New Entrants - P & R

The barrier to enter Biotechnology industry is high. The first barrier is the extensive requirements in funding coming from heavy expenditures in R&D, along with the risk of little to no returns or even heavy losses if the drug fails to reach the market. Regulatory environment partly contributes to the barrier as the new drug approval process can be time-consuming with relatively 89% of failure to pass through. The second barrier is specialization. Companies with knowledge in obscure diseases will enjoy low threat of new entrant for there are few experts in the field.

Ultimately P&G understands how to make their customers the main priority. Their products and brands are household names and are used in arguable every home across the world. In order to have this kind of success it depends on how well each retailers and wholesalers sells their products. Within the walls of P&G there are innovators, leaders, and creative minds that are pushing to craft the best products in the world. But without their customer business development, these products are not successful. Their focus on their customer is what leaves them untouchable in its industry. They are able create a relationship and bring value to the customer, making them successful in the long run. As stated in the article, “P&G is so committed to the principle of developing the customers business as a means of developing its

As we can see from the past and current situation, the marketplace is always changing and not just about purchasing and buying between consumers and sellers. More and more firms begin to concentrate on creating a positive image for a product. A firm can choose several positioning strategies, including strengthening the current position, repositioning or try to reposition the competition. (Hartline,2005) Brand repositioning is one of the most effective ways for a firm to solve tough situation. A firm should reposition its brand under the following four circumstances: when the first position is wrong, when there is strong competition in the marketplace, when the target consumer is to be changed, and to rebuild a brand’s personality.

The normal striking back from settled organizations for brand value, assets, prime land areas and value rivalry are modestly high, which makes a moderate boundary to passage.

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firm increases. New Entrants are companies that are not currently competing in an industry but have the capability to do so if they choose. The banking industry in our country is still in its growth stage. So, the threat of potential New Entrants is quite high. Usually the existing companies try to deter potential competitors by setting certain entry barriers. Barriers to entry are factors that make it costly for companies to enter an industry. The common barriers to entry are Brand Loyalty, Absolute Cost Advantage, Learning Curve Effect, Economies of Scale and Government Regulations. In Bangladesh, the question of Brand Loyalty is somewhat evident in the banking industry. A person who is a loyal customer of a local or government owned bank usually does not prefer an account in a multinational bank, whatever lucrative the benefits seem. This creates barriers for new entrants. No bank enjoys an absolute cost advantage, due to the fragmented nature of the industry. Most of the government banks and some local banks enjoy learning curve effect as well as the scale of economy; due to the fact that they have been doing business for quite a long time, they have gathered a long-time experience of operating in Bangladeshi environment, and they have branches all over the country. The multinational banks are also on the process of achieving scale of economy. The

One of the most luxurious and exquisite brands in the world of faucets and bathroom fittings is Delta Faucets. The branding of Delta has been a very remarkable process – it targets the highest niche of the market with its products that have the highest finish and technological innovation. It is compelling to think how technology could be introduced in bathroom fittings and faucets. Delta faucets are embedded with technologically innovative ideas and thus are distinctive in nature from all of its competitor products.

Procter & Gamble’s mission and vision statement is profoundly stated within what the company refers to as their statement of purpose. The statement defines the company’s current and future direction, including their shared image in producing quality products that commit to the well-being of all individuals and communities alike. For nearly the last two decades, P&G has been establishing themselves in various marketplaces around the world, and expanding their product mix in accordance to consumer tastes. However, as the consumer goods industry continues to evolve, so do changes within P&G’s organizational structure, including the need to divest or cease many of the company’s brands to reduce costs and improve operational efficiency.

Government Polices: During the days when the Big Three (Ford, General Motors and Chrysler) controlled about 85 percent of the world’s auto production, automotive safety was given little consideration (Michaels 1). “Whether driven by cost or genuine concern of market rejection, automakers for years resisted even the most basic precautions” (Michaels 1). This all changed in the 1960s when the Nation Academies of Sciences released a watershed report that highlighted the danger of the automobile and the industry’s reluctance for safety measures (Michaels 1). Therefore, this caused many government policies to be in acted to protect innocent citizen driving motor vehicles, such as the Highway Safety Act and Low Volume Motor Vehicle Manufacturer’s Act (Michaels 1). Today in 2014 though, there are more than just safety standards and acts that effects the automotive industry. Automakers have to be conscious of import regulations, emission standards and fuel economy standards set by the government. That beginning said, government policies are one of the highest barriers that cause low threats of new entrants of the automotive industry.

The advantage of branding strategy is to sustain customers’ loyalty. When people have a positive experience with a specific brand, they are more likely to buy the same brand’s products again rather than buying other brands products. Apart from this, customers who familiar with a brand will also buy the related items of the same brand and also recommend the brand to others. Branding his products is his key to success in the down-stream industry.

At the early 2000 only around 15% of Procter & Gamble Company’s innovations were meeting revenue and profit targets. As per the case study Procter & Gamble Company invest $2 billion annually for this innovation, and 400$ million to do customer research. After spending this much money only 15% success rates means really a critical situation for the

Government Polices: During the days when the Big Three (Ford, General Motors and Chrysler) controlled 85 percent of the world’s auto production, automotive safety was given little consideration (Michaels). Whether driven by cost or genuine concern of market rejection, automakers for years resisted even the most basic precautions (Michaels). This all changed in the 1960s when the Nation Academies of Sciences released a watershed report that highlighted the danger of the automobile and the industry’s reluctance for safety measures. Therefore, this caused many government policies to be in acted to protect innocent citizen driving motor vehicles, such as the Highway Safety Act and Low Volume Motor Vehicle

P&G’s strategy consists of maintaining the popularity of its existing brands and developing new products by extending existing brands and by creating new brands from scratch via innovation. Innovation is at the core of P&G’s strategy and collaboration is a critical tool to attaining this innovation. In order to constantly come up with new lines of products, P&G must incorporate innovation in every aspect of its business. All objectives and business

Social media has transformed the way business is conducted across the world and has changed the trends of corporate communication and the pattern it takes. Companies use the social media to share their achievement, plans, products, and news with all the stakeholders (Manavik Joseph Jesus 2015 p61). For this reason, the social media is considered a vital instrument in passing strategic information of a company. The communication methods, when combined with the technological tools for sharing information people concerned with public relation issues, can achieve their goal within a short duration. This is why companies have people to manage their PR to ensure people have a positive perception towards their products and the companies at large. This is a very effective manner of improving the sale of a company by creating positive images in the minds and eyes of the potential clients and stakeholders. The social media platforms are internet based sites where the public interact and share ideas and information in a viral manner (Mohamad, Bakar, Halim, and Ismail, 2014 p116). This means that people get a chance to share information about a brand and compare it against many of similar kind and make a final opinion of the best option. The corporate organisation takes the advantage to engage with people and understand their position in the market and look for avenues to better their position or change according to the needs of the customers. It is also the

Take for example Article base (2007) states that Honda and Toyota knows America wants fuel-efficient vehicles. This case made the two companies work hard thus producing a vehicle that gets more and more mile per gallon. It is very expensive but a lot of people are waiting in line to get this product. This example shows that consumers go for the best brand quality no matter what.

With P&G being present in 180 countries there seems to be no real barrier to entry that can’t be overcome. They have some competition from other companies that offer dishwashing detergents which can be seen as a threat of substitute products. There is definitely a presence of rivalry from other competitors including the store name brand detergents that are shelved next to P&G’s product.