Entry

profitability of an industry and create a competitive strategy for the business. If the five forces in an industry are strong, this industry will be less attractive because the potential profits will be low, and the reverse also is true. Threat of Entry: Barriers to entry in this industry are low and are increasing. Any new entrants can impact fast food restaurant companies’ market share. There are many potential entrants in the industry: 1. Franchise agreements Due to the franchising on the fast food restaurants

SECTION 1: EXTERNAL ENVIRONMENT ANALYSIS This section we are analyzing the Indian Pharmacy at which the Ajanta Pharma belongs and the overall external environment in which the company is operating. 1.1 PEST ANALYSIS PEST ANALYSIS shows the factors in the macro environments of a firm Political • Political uncertainty • Stringent price control • Pricing is done by government w.r.t to approved costs Economical • The incidences of taxes are high • Lesser count of practitioners results to medical shops

➢ SpiceJet SpiceJet is a low cost airline that began its operations in May 2005. Earlier known as Royal Airways, SpiceJet has chosen a single aircraft type fleet for greater efficiency in maintenance and the low-cost structure. ➢ GoAir Airlines GoAir Airlines, being a low cost airline, is promoted by Wadia Group and started its operations in 2005. It is the 5th largest Airline in India. ➢ Air Deccan Air Deccan , being India’s first low cost airline, is a part of Deccan Aviation Private Limited

the market structures I will explain in depth the different types of market structures, one example of a market structure here in Smallville, Ohio, I will also share how high entry barriers into our market will affect the profitability in the long term sense, competitive pressures that are present in high barriers to entry, the role of the government and how it affects each of the different market structures ability to price its products and the effect of international trade on each of the different

AYN 505 – Sem. 1/2011 BUSINESS STRATEGY ANALYSIS - SEMINAR QUESTIONS – WEEK 2 - KEY POINTS A. Discussion Question 1. In financial analysis, explain why each of the four financial analysis steps (strategy, accounting, financial, and prospective analysis) is critical, and explain how they relate to one another. (PHBWBL p10, Q4 adapted) 2. Your brother, who works in a bank, has recommended to you that you purchase shares in an organisation, on the basis of the following information, which

Mathematical Concepts To start, a marginal analysis* (MA) is beneficial. As noted, the PA facility operates at 40 percent of capacity. Assume that the all costs related to the 40 percent operations are estimated at $2 million per year, and during that time, the 14 SKUs are produced. If production costs were dou-bled, this would mean 28 SKUs at a cost of $4 million. Averaging the results from 2001-04 in Table 2, the middling infant sales total of Heinz’s products was $8.4 million (Heinz, 2014)

Degree of Competitive forces in the Portable Electric Power Tool industry (Structural Analysis) Barriers to Entry: High The major barriers to entry in this industry were found in terms of 1. Technology, 2. Capital investment, 3. Economy of scale in manufacturing, and 4. Brand reputation in specific market segments & product categories. Barriers to Entry (Technology/Capital Investment): Per the data given in the case study (Pg 3, Para 3), typically it required 2-4 years

provide faster and deeper penetration into the market due to their excellent properties and patent protection. Launch of a “blockbuster” guarantees high sales to the company. However, those companies face a number of difficulties associated with the entry of generics after the expiration of patent protection. First, sales of the original product plunge. Consequently, companies have to reduce their prices to compete. “This process is called “genericisation” - with regard to pharmaceutical products

characterises of firms that operate as oligopolies these include: 1. Interdependence 2. Strategy 3. Barriers to entry o Natural barriers o Artificial barriers When economists determine the competitiveness of market they usually look at the assumptions of the different market structures. The same

Porter. Published by Harvard Business Review, 1979.” (http://www.mindtools.com/pages/article/newTMC_08.htm) Porter’s Five Forces Example: Buying a Farm This worries him: • The threat of new entry is quite high: if anyone looks as if they're making a sustained profit, new competitors can come into the industry easily, reducing profits. • Competitive rivalry is extremely high: if someone raises prices, they'll be quickly undercut. Intense competition