Barriers to exit

Cold Storage Operations Academic Group23 20th Jan 2010 Industry boundary Vertical scope: The below diagram depicts the key activities performed in a cold chain. Of these, packaging, precooling and cold storage are typically provided by the same player. These activities are together referred to as cold storage operations, and form the ‘vertical scope’ of our industry analysis. Horizontal scope: Cold chain logistics are used for a variety of products such as pharmaceuticals, dairy products

FIVE FORCES ANALYSIS WORKSHEET Exhibit III-1 Five Forces Affecting Industry Structure ENTRY BARRIERS Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Proprietary learning curve Access to necessary inputs Proprietary low-cost product design Government policy and international treaties Expected retaliation RIVALRY DETERMINANTS Industry Growth Fixed (or storage) costs/value-added Intermittent overcapacity

competitors because they enter the extra capacity into the market. The key concept in the analysis of new comers is the barriers to enter. If a company has a problem or competitive weak point in entering into a new industry, there are barriers to enter. Each industry has its specific features that may confine the new entries or prevent their entrance. Some common problems in raising the barriers to enter include: long-term relationship with customers, the required capital, scale-derived economy, difference

1:0 Introductions There are many approaches in business today that managers can use to analyze the business environment such as SWOT analysis, PEST analysis, PORTER’S five forces analysis, four corner’s analysis, Value chain analysis, Early Warming Scans and War Gaming. However, many organizations use Michael Porter’s frame work to analyze business micro environment where the organization/company belongs. Business development managers/ Market Survey managers are mainly critical on analysis of

Understanding the competitive forces and their underlying forces tells the roots of the industry’s current profitability while providing a framework for anticipating and influencing competition overtime. The Five Competitive Forces are meant for companies strategist to analyse and cope with competition. The five forces defines an industry’s structure and shaped the nature of competitive interaction within an industry. A healthy industry structure should be as much as competitive concern to strategiest

Chapter 04 The External Environment   Multiple Choice Questions   1. (p. 81) The external environment can be divided into various subcategories:  A. Remote, political, social B. Remote, social, operational C. Remote, industry, operating D. Technological and social   Difficulty: Easy Learning Objective: 1   2. (p. 81) A firm's external environment includes a remote sector, industry sector and an operating sector. The remote sector includes which of the following categories

ISSUE IDENTIFICATION The issues surrounding Holey Soles include • The inability to have a high market share due to dominance from Crocs. • How to reach the goal of $40 million revenue while deciding upon expansion. But the current impending issue is how to reach the goal of $40 million by 2009. THE INJECTION MOLDED FOOTWEAR INDUSTRY ANALYSIS Strengths • Fast growing company. • Focused on innovative lifestyle products. • Unique SoleTek and Smartcell foam technologies. • Competitive pricing

cans in beer market. Conclusion: the metal cans face significant threats from substitutes. The intensity of competitive rivalry: 1. Products are not much differentiated, so there is intensive price competition. 2. The low-entry barrier and the threats of substitutes put a cap on prices 3. The great deal of bargaining power of supplier and customers cut down the margin of metal can manufactures. 4. The capacity is excess, the demand for cans is below the potential supplies

and exit constitute major business strategy decisions reflecting a strategic initiative on the part of a firm to develop, or reshape, its product or market positioning Barriers to entry are obstacles in the way of firms attempting to enter a particular market, which may operate to give established firms particular advantage over investment. They are factors that allow incumbent firms to earn positive economic profits, while making it unprofitable for new comers to enter the industry. Barriers to

competitive forces that determine if you should enter a new market segment. The “Five Forces” are: 1. Intense Rivalry. A category can already have too much competition between aggressive competitors, which can be amplified by high fixed costs or exit barriers or if the current category members have high stakes in staying in the segment. A hyper-competitive environment will most likely lead to non-stop price wars, advertising battles, and a constant introduction of new products that will make it difficult