meli marine Essay

The threat that substitute products pose to an industry's profitability depends on the relative price-to-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of

Of the three forms of transportation, rail has the highest fixed costs, motor carriers the greatest variable costs, and air transport, the greatest variable costs of service and logistics optimization. Starting with rail, the cost structure has the highest fixed cost components, driven by infrastructure and terminal costs. Rail is therefore the most difficult to negotiate a lower transportation cost for, as the fixed costs form an inflexible pricing structure for retail service providers. The quality of rail service varies significantly across nations and regions as well, leading to greater variability in costs when a shipment moves across national and regional boundaries. Given the highly fixed cost structure of rail systems, there is significant room for improvement from an efficiency standpoint. The use of containerization is continually adding to greater efficiencies to this mode of transport (Jennings, Holcomb, 1996).

b) Extremely large capital requirements are necessary to enter the market. Hub facilities at airports (e.g. FedEx’s hub near Dallas cost $250 million); capital expenditures for

On November 10th, 1775, the Continental Congress passed a resolution that stated "two Battalions of Marines be raised", which established the Continental Marines, and is now considered the birth date of the Marines. The newly formed Continental Marines served on both land and sea, and took part in many major engagements, which helped establish them as an important branch of the Armed Forces. The first Commandant of the Continental Marines was Captain Samuel Nicholas, who was born in Philadelphia in 1744. He was commissioned to be a “Captain of Marines” by the 2nd Continental Congress on November 5th 1775. Nicholas soon established Tun Tavern as the recruiting headquarters. Tun Tavern’s owner, Robert Mullen, was so successful at recruiting

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.

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

Bargaining power of supplier: High levels of competition among suppliers act to reduce prices to producers. This is a positive for Ford Motor Company. Standardization of parts allowed Ford to reduce dependency on fixed supplier/vendor which goes into producer’s favor.

The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. If there is a market with much choice supplier choice, bargaining power will be less.

This is logical because, larger the ships, more load could they carry, and thus make higher profits, so are priced higher.

Supply and demand in the British Petroleum Company, constants in a great degree, and does not change

As such there is no brand loyalty, however all the major players are know for their reliability and for a new entrant to establish the same will take a lot of time. There won't be any cost advantage factor as the hub-and-spoke model, used in this industry, can be implemented by new entrants. Economies of scale will not be in favor of the new competitor as the initial volume would be low. Switching costs are not high in this industry.

The bargaining power of buyers stands in a direct relationship with the bargaining power of suppliers. If the bargaining power of buyers is substantial it increases the opportunity cost of suppliers. The greater the buyers concentration the greater their bargaining power. This bargaining power is also increased in markets where the suppliers’ concentration is high. The bargaining power is also increased when the cost of switching from one supplier to another is low. In instances where backward vertical integration is possible i.e. buyers setting up their own chains of suppliers the bargaining power of the buyer increases in that their prices may become more competitive. In a market where the buyers are more concerned over quality than price their bargaining power decreases as they are less inclined to shop

Containerization is a system of freight transport that transports trade goods from ports to ports. This system is based on a range of steel intermodal containers (also "shipping containers").These containers are built to standardized dimensions and can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another. Thus, it provided an economic way to ship 90% of the world trade goods across the globe and as a result has benefited society in providing for a truly open market to buy and sell goods. Cebu is home to national and international corporations whose trading hub is centered in the international port (cargo

Bargaining power of suppliers. Suppliers have the ability to leverage, control, and negotiate the cost of their products (Hill et al., 2015, p. 56). In the case of the suppliers of the office supplies industry, more so for Staples, the bargaining power is weak and is considered to be low. The reason for its power being weak is a result of large companies having several suppliers that will easily compete against each other to provide the lowest cost of products.

- 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.