Industry Rivalry: Intense (high). As there is low entry barriers in the industry, it adds more competitors/rivalry. Buyers: Bargaining power of buyers is very strong. In the context of the increasingly intense competition among numerous small label printing businesses, the bargaining power of buyers in the electronics manufacturing industry has become stronger, which reflects in the way they place orders - more in label product variety but less in quantity for each variety. Further, they keep asking for more new label product varieties to be developed to meet their needs, and even ask for a 3% discount each subsequent year as a compulsory requirement. Thus customers can choose among any label manufacturing business as long as they provide quality and efficiency. …show more content…
Varicut does not have as many suppliers to choose from. Varicut demands for specific requirements from the manufacturers and when they order from suppliers it’s in small volumes, which then eventually causes the suppliers to drift away. As a result, Varicut is forced to lower its prices to attract its suppliers and keep them interested. New Entrants: Threat of New Entrant is high. Label printing is a very popular industry, Many of the new entrants are coming in the market and attracting consumers by selling their products in lower prices affecting Varicut’s overall profit margin. Substitute: Threat of Substitute is weak. Even though it is expected that Radio-frequency-identification can eventually replace code identification, yet the manufacturing label printing switching cost is high, therefore in the current time period there are is no substitute
very broad one, meaning that industry competition can be very diverse, and indeed it is. The
Customers make demands on the market by routinely expressing their desire for “more”. This has been called “seeking a bigger and better deal”. The demand is for more value, and more options. As they search the marketplace for its offerings, customers are often pleased to see new suppliers. They consider the new offerings, and make decisions about changing their purchasing habits.
Hyper Competitors especially those that more diverse in technology. Very competitive and people want the best and newest technology
Bargaining power of buyers is medium-high because of the low switching costs and wider spectrum of similar products selling at competitive prices due to the influence of developing countries
Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.
The majority of products offered by industry members are commodities and are weakly differentiated which increases rivalry.
The Vaurca, a synthetic insectoid alien race that first established contact with humanity in December 2457, have fully integrated into Nanotrason as corporate employees. These alien employees, like their co-workers, are required by contract to obey and act within the set regulations, directives and supervisory orders of their assigned area. Nanotrason’s high security space stations, like the NSS Aurora require all crewmembers to obey a system of naval laws referred to as Station Regulations; which are enforced by an internal security department. The internal security department of the NSS Aurora is facing a crisis, as the unique physiology of the Vaurca species does not meld with the current use of force model.
Actually, for the second part, the Rivalry Among Established Companies is quite
The 10% price cut for the mass merchandiser could hurt their reputation with all of their current suppliers. Cutting the price 10% for one type of retail outlet will cause all other stores to want the same treatment. This would be a disruptive change to Fe’nix’s business and their overall profit.
The big retail stores have the advantage of making the highest possible margin as they buy in bulk from the suppliers and hence they can afford to play with their prices.
New entrants in the industry that are battling to have a share of the market
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
High rivalry from family owned businesses, full line dairies, and large international companies. High threat due to loss of patent; product can be copied by competition and former employees
There are many different suppliers for the different types of product lines. This makes it easy for companies in the industry to secure a supply. As Corning is a large company, it is able to negotiate good prices from suppliers. There are many suppliers that are willing to cooperate with Corning because they can earn substantial profits from Corning’s businesses.
If an industry is profitable, it will become a magnet to attract more competitors looking to do same business with us. If it is easy for these new entrants to enter the market, this poses a threat to the firms already competing in that market. Threat of new entrants is one of the forces that shape the competitive structure of an industry (Marc, 2014). A high threat of entry means new competitors are attracted by the profits of the industry and can enter the industry easily. New competitors entering the marketplace can make the market share and profitability of existing competitors more threaten cause the existing competitor to make some changes to existing product quality or price levels. A high threat of new entrance can make an industry more competitive and decrease profit potential for existing competitors whereas a low high threat of new entrance can make an industry less competitive and increases profit potential for the existing