Question 1
The industry in which sponges, pads and other cleaning equipment are labeled under is Cleaning and Maintenance Supplies. This industry is relatively volatile with limited growth and industry operation, yet the market for sponges specifically has the highest profit potential and technological advancements within the industry.
Rivalry- Competition is low in this industry, since a single company, 3M has monopolized the cleaning sponges’ market with a market share of 74%, and the second largest competitor with 2.2% (Hagerty, 2013). This means that there exists strong brand loyalty among buyers toward historic brands and not that intense rivalry among current producers.
Bargaining Power of Buyers is high, because there is low switching …show more content…
Due to all the external and internal business situations and limitations discussed above, I think that Scrub Daddy cannot keep its sustainability unless it is constantly innovating new qualities/features like Apple does to its IPhones. Unfortunately, in cleaning sponge market, constant innovation might be costlier rather than being beneficial. High growth is very doubtful, because when industry growth is very small, the only way to expand its business is capturing the competitors’ market share, and in Scrub Daddy’s case, capturing 3M’s market share. With buyers who focus more on prices, Scrub Daddy’s losses can be much more than its gains if it competes with a monopoly for a market …show more content…
Higher number of application doesn’t necessarily mean that current curriculum is increasing application. Furthermore, when comparing two results, in this case number of applications to Dyson and ILR, we need to consider the factors that potentially drive for such results for both schools. The reasons that applicant would apply to a certain school are fare more than just curriculum; it would include, applicants interest, career options, school’s alumni relations, professors, school specific clubs and student organizations etc. Current programs and curriculum might lead to higher number of application, meaning that curriculum and application number can be correlated, but doesn’t imply that one cause the
The industry in which sponges, pads and other cleaning equipment are labeled under is Cleaning and Maintenance Supplies. This industry is relatively volatile with limited growth and industry operation, yet the market for sponges specifically has the highest profit potential and technological advancements within the industry.
Rivalry- Competition is low in this industry, since a single company, 3M has monopolized the cleaning sponges’ market with a market share of 74%, and the second largest competitor with 2.2% (Hagerty, 2013). This means that there exists strong brand loyalty among buyers toward historic brands and not that intense rivalry among current producers.
Bargaining Power of Buyers is high, because there is low switching …show more content…
Due to all the external and internal business situations and limitations discussed above, I think that Scrub Daddy cannot keep its sustainability unless it is constantly innovating new qualities/features like Apple does to its IPhones. Unfortunately, in cleaning sponge market, constant innovation might be costlier rather than being beneficial. High growth is very doubtful, because when industry growth is very small, the only way to expand its business is capturing the competitors’ market share, and in Scrub Daddy’s case, capturing 3M’s market share. With buyers who focus more on prices, Scrub Daddy’s losses can be much more than its gains if it competes with a monopoly for a market …show more content…
Higher number of application doesn’t necessarily mean that current curriculum is increasing application. Furthermore, when comparing two results, in this case number of applications to Dyson and ILR, we need to consider the factors that potentially drive for such results for both schools. The reasons that applicant would apply to a certain school are fare more than just curriculum; it would include, applicants interest, career options, school’s alumni relations, professors, school specific clubs and student organizations etc. Current programs and curriculum might lead to higher number of application, meaning that curriculum and application number can be correlated, but doesn’t imply that one cause the