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E Objetive Is Introduce the Unmained Store Device in the Uk, First, You Are Going to Make a Strategic Analysis and Competitors Analysis.

Autor:   •  April 8, 2015  •  Essay  •  1,141 Words (5 Pages)  •  1,119 Views

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The objetive is introduce the unmained store device in the UK, first, you are going to make a strategic analysis and competitors analysis.

5 Forces of Porter:

  • Bargaining power of customers:

The power of buyers is weak, because our product or tool is unique from our store. There is the possibility of finding the same service to other price. The only power that can have the client is to find the same product at a lower or equal price but a different service that we offer.

The buyer volume will be intense, because the service of “AutoMarket” is simple and cheap than others competitors. Buyers will find favorable conditions for product purchase.

Buyers can be strict because what you cannot deliver, so find another competitor. Buyer’s profitability: Buyers will most certainly not be offered a similar product so price can be changed without major consequences. Current level of quality and service: will not be extremely important as it is commonly a supermarket product, and people will always have access to it.

Cost of replacement buyers: virtually nonexistent. The plurality of bidders can get the same product at a similar price.

  • Bargaining power of suppliers:

The bigger the bargaining power of suppliers is, the higher the final price of the product. AutoMarket to be a new competitor prices obtaining products from suppliers in theory should be high, since having our competitive advantage create value, to lower the price of suppliers to market our products to a broader level.

Increase the number of suppliers of different products to make more complete and attractive AutoMarket, trading lower by having relations with several suppliers prices.

  • New entrants threat

In this sense, and following the model of Porter's forces to analyze the environment of our industry, we must refer to possible new entrants. It is obvious that this entry will be inevitable. However, the big problem that AutoMarket will face will be the formation and consolidation, both in areas of speed and efficiency, and will be marked among others by entry barriers.

Despite this we know that the entry of many companies is inevitable either through persuasion, the imposition of lower prices, by charging lower fees than ours, etc. However, as is well known by experts in Marketing, in many occasions, is better being the first one than the better one, because it is much easier to enter in customer´s mind for first time than setting up a new similar company and convince everybody that the product you are selling is better. Nevertheless, if you want this entry barrier to be strong enough, you will have to look for a really competitive advantage which makes you different from others and in any case be difficult to replicate by potential competition in the short term.

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