Starbucks Case - Skil Corporation
Autor: neklda • September 22, 2011 • Case Study • 1,304 Words (6 Pages) • 1,982 Views
Skil Corporation
October 12, 2009
Team Member
XXXXX (gatekeeper)
Email: XXXXXXX@hotmail.com
XXXXXXX
Email: tXXXXX@hotmail.com
XXXXXX
Email: XXXXXXX@hotmail.com
XXXXXXXX
Email: XXXXXX@hotmail.com
XXXXXXX
Email: XXXXXXX@msn.com
Title: Skil
Industry
Industry Structure: Concentrated
Product Differentiation: Generic Product
Technological Change: Slow
Product/Service Technology: Professional buyers require high product/service technology
Consumer buyers required less product / service technology
Performance Grid:
Location: Global
Product Life Cycle: Mature
Porter’s Five Forces
1. Entry Barriers
Most Important
Economies of Scale
The economies of scale are existed in the Portable Tool Industry. The component of the saw is very important in the production because the cost of machinery, die-casting and molding depend on the volume per part. Molding and die-casting can reduce cost by approximately 20% when comparing it to purchased components. This is very significant for the industrial tool since molding, machinery and die-casting accounts for about 39% of manufacturing cost and consumer tools about 10%. Also, automation has helped some foreign manufacturers to have additional cost reduction. The Lamination Press for example was heavily invested by some foreign manufacturers. The price for the Lamination Press ranges from $750,000 to $1 million and there were an additional $250,000 for each set of tooling. The presence of economies of scale is great for the existing players but on the other hand it set a high barrier for incoming players since it forces these players to come in on a large scale of production or they can expect to have a cost disadvantage.
Brand Identity
Brand identity
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