Interspecific competition

High intensity results in higher fixed cost and lower profitability for all the companies in that industry. If brand loyalty is low, products are all similar, customer switching costs are low and high exit barriers results in fierce competition between rivals. Example: low rivalry in optical industry, high rivalry in pharmaceutical industry. Weaknesses: Porter’s five forces was published in late 1970s and was useful method to observe and analyze external economic environment and come up…

PESTLE Analysis PESTLE Analysis is a analysis of the external factors of a company, which plays a significant part of company’s new project. Managers identify the risk factors by using this method before taking any steps for the company. There are six factors associated with PESTLE, namely Political, Economical, Social, Technological, Legal and Environmental. Unalike SWOT analysis, this focus on the external macro environmental factors that would cause any negative effect on the business now or…

Rivalry among competing firms: The competing companies against Luck Industries is Vulcan Material and Marietta Materials. Vulcan Material is the number supplier of Stone. The risk of the rivalry companies is high because if price is what matters to the consumer the other larger companies can always lower price which would make it more difficult for Luck to compete. Luck industries always cares about it’s employees first along with it’s customers which make their products more expensive. Luck…

Recommendations Theory 1 Theory that has been used in this situation is maximizing profit. The concept of the theory is to increase the profit of the company to maximum level. The company always gives priority to profit and least bother about other issues. The unethical practice that this company is practicing is preparing unhealthy fast food.Generally, fast food is not healthy to consume. Every age group will be suffering as the consequences of eating fried chicken.…

i. Cost Leadership-Low Cost; Involves projecting a company as the cheapest source for a good or service to offer to a wide range of customers. Costs are minimized and the savings are then passed on to customers. Celcom • Does this by pushing for a culture that inculcates high productivity and accountability. The company has reduced the number of layers in its organizational hierarchy from the teens to just 6, and in the process, allowing for faster and transparent decision-making. With the…

and rely on this strategy only. Another idea they can introduce at this time of the year, is to offer any customer who buys two Ferrero Rocher packs a small Christmas tree, as shown in figure 8. Another idea of sales promotions could include a competition of the best table decoration on Christmas Eve using Ferrero Rocher chocolate. The winner for example would win a trip for to two to…

The primary distinguishing factor between Penrose’s and Coase’s theories is the idea of fluidity – Coase believes the firm to be a static body with an optimum size, whereas Penrose views the firm as a dynamic entity that has no size limit, unless it fails to exploit its resources, at which point the firm becomes stagnant. Whilst Penrose defines the firm as an "autonomous administrative planning unit”, which is bounded by its “area of authoritative communication”, Coase perceives the firm as a…

The PEST analysis, like a SWOT analysis studies four dimensions. However, a PEST analysis looks at the political, economic, socio-cultural, and technological factors. The difference between a PEST analysis and a SWOT analysis is that a SWOT analysis analyzes internal factors whereas a PEST analysis involves examining the external factors that affect one’s work environment. Organizations conduct PEST analyses in order to create strategies going forward. For my PEST analysis, I am going to analyze…

Merger of Mobilink and Warid Question 1) Why mergers take place, What are its basics? Answer:- Mergers usually take place to two main reason 1) When one company wants to expand its business and wants to capture more customers 2) When one company is at the door steps of shutting down and they want to join another giant company to overcome their problems When mobilink and warid merge together both the companies were in win win situation because both of them generate lots of profit. I think…

There are many different beliefs towards what brings us to success. In The Sports Gene by David Epstein, it is explained that innate and physical talents are what allow people to succeed. In Outliers: The Story of Success, Malcolm Gladwell explains that effort and practice is what brings us to the top. Epstein and Gladwell both put forth arguments about how much in our lives we control, however, based on evidence Gladwell definitely shows that effort and practice is what we control to make us…