kroenke emis3 tif 03

There is a threat of bargaining power of buyers as there is a lot of competitors, which give the choice to convert from one chain to another. Moreover, chains are working strongly in the promotion, price, opening branches everywhere, developing the product, and cares regarding quality. It

The company should follow a combination of the following options to maintain long-term competitiveness: •

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

Industries often have an established company that is a price leader. When competitors “meet” the leader’s price, the competitor is pursuing a ______?_____ strategy? B

There are many network equipment suppliers, which are suffered from the down telecom market. Having mature technologies also commoditize the products. As such, the bargaining power of suppliers has been weak.

3.How these strategies are related the performance of these companies over time? Why? What is going on in terms of industry competition and markets that makes one strategy outperform the other at any point in time?

1. Create or describe a strategy for your firm, as operationalized by Collis and Rukstad. Be sure to be comprehensive and specific when separately describing your

7. Which of the following must be true if a firm is experiencing economies of scale?

a. For your strategy to be successful, are there any underlying assumptions that you have made?

3. Describe the competitive strategies used by each of Williams-Sonoma’s competitors. Which of these are most effective?

b) Another alternative should be using the negotiation method in order to develop a “win-win” situation. A negotiating party would have to be applied, “When a long period of time is required to produce the items purchased” (p 375). In these circumstances, suitable economic price adjustment clauses must be negotiated. Opportunities for various improvements may develop, such as the new manufacturing methods, new packaging possibilities, substitute materials, new plant layouts, and new tools. Negotiation permits an examination and evaluation of all these potential improvements. Competitive bidding does not. The advantage would be assurance of a long-term business with the Company along with reasonable profit for the supplier and reasonable cost for the buyer.

Define: Pressure suppliers can put onto their customers by increasing prices, decreasing the quality of items, and minimizing availability

The framework of jobs and departments that make up any organization must be directed toward achieving the organization’s objectives

- Suppliers’ bargaining power: The company does bargains with the suppliers, suppliers are first carefully selected by carrying out bidding then a fixed price is set by multi consent then material is provided by the supplier.

Chapter Five describes the five basic competitive strategy options – which of the five to employ is a company’s first and foremost choice in crafting overall strategy and beginning its quest for competitive advantage.