Case Analysis Of Consolidated Industries

909 Words2 Pages

The cost of the product manufactured in the industry are planned by the strategic managers, they planned according to the present strategy of the company and their rivals in the market. The cost leaders make the low price strategy when they having a huge demand on the product, as they reduce the price the demand of product increased. Then the market value of the product will be raised. The low cost strategy differentiates from the company which have higher price of the product in the market, as the price is reduced to increase the demand of the product. The company which have higher price has a unique product for one set of customers, as they charge higher price than the rivals who has low cost strategy which leads to profitability and good market share of the product. 2. Aside from low-cost strategy, …show more content…

The local market competition effects the fragmented industries. They will not effect the consolidated industries. 2. What opportunities and advantages do consolidated industries offer that fragmented industries do not? The advantages that the consolidated industry has fragmented industry are The cost of starting and maintaining the company is less in consolidated industries than in fragmented industries. As the consolidated industry is huge chain of companies where the production is more and reduces the operational cost. The consolidated industries have good market value of the product, and have profitability of the company. The companies in consolidated industry works to find the new products to lower their costs and increase the revenue and have the economies of scale. As consolidated industries are large number of companies which has more number of partnerships as they have good market value. 3. Describe horizontal and vertical integration. Why do businesses leverage these vehicles for growth, and how can they aid in gaining competitive

Show More
Related

  • Vertical Integration In Health Care Case Study

    951 Words  | 2 Pages

    Horizontal integration brings organizations under one organization, and system. Vertical integration brings together all or part of a production procedure under one management, the fundamental principle of vertical integration is supplying a set of health care services to satisfy the needs of individuals in a specific group.

    Read More

  • The Meaning of Vertical and Horizontal Integration

    752 Words  | 2 Pages

    The Meaning of Vertical and Horizontal Integration Horizontal integration is where an organisation owns two or more companies, on the same level of the buying chain. An example of this is the First Choice Group; they own First Choice Travel Agency and First Choice Hypermarket, both of which are on the same level of the buying chain. The advantage of horizontal integration is that it can increase the company’s market share. Another good example of this type of integration is when EasyJet purchased the airline Go from British Airways. Now EasyJet and Go both operate under the company name of EasyJet.

    Read More

  • Business Analysis of Two Airlines

    1354 Words  | 3 Pages

    Cost advantage: by better understanding costs and constricting them out of the value-creating activities. Main focus of this strategy also known as cost leadership is to offer goods and services at lower cost than the competitors. To follow this strategy a company also consider these approaches- tight cost control, economics of scale in production and also cost minimisation.

    Read More

  • Digby Strategy Model

    1149 Words  | 3 Pages

    And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the

    Read More

  • Marks And Spencer Business Strategy

    1016 Words  | 3 Pages

    In the horizontal integration, the company product range is from a wide clientele. That is they sell product either clothing or luxurious foods from different manufacturers. These give them the edge since the products they offer a variety for the customers to choose from, and hence they can shop less than one roof (Cole, 1997). In the vertical integration strategy, the firm will deal substantial with products from a single supplier and M&S gets the exclusive rights to deal with the product and its supply to the market. This is necessary when the company aim is to serve an identified target market which is exclusive and has the potential to sustain and grow the company substantively. These employ a tar...

    Read More

  • Swot Analysis And SWOT Analysis Of Starbucks And Apple

    1316 Words  | 3 Pages

    Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market

    Read More

  • Rip Curl Essay

    676 Words  | 2 Pages

    There are several key factors that are attributed to the success of a firm competing in this industry. Firms must have economies of scope to have to ability to produce products that satisfy a wide range of customer preferences, as well as economies of scale which enables manufactures a low marginal cost when producing their products. Economies of scope and scale are often gained by corporations in this industry through acquisitions of other companies that specialize in different types of products. Firms must also firmly establish their brands, as well as possess the ability to adapt to the ever changing trends in the market (Haider, Global Apparel

    Read More

  • Cooper Industries Proposal to Acquire Nicholson File Company

    2708 Words  | 6 Pages

    Kinsell, Krik. (June 2005). Factors to consider when planning consolidation. Franchising World, Vol. 37, Issue 6, pp. 63–65. Retrieved September 2, 2008, from: kirk.kinsell@ichotelsgroup.com

    Read More

  • Company Merger and Acquisitions

    1037 Words  | 3 Pages

    Companies merge and acquire other companies for a lot of strategic reasons with different degree of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases.

    Read More

  • A Five Year Strategic Plan for Mensa Inc.

    1109 Words  | 3 Pages

    To conclude, these issues are holding back the firm from being able to sustain profitability to a great extent. If these are resolved, then it can help the firm to form an overall profitability as each of its subsidiaries will contribute to be profitable by functioning only in the packaging sector or exploring new markets.

    Read More

  • Kmart and Sears Marketing

    850 Words  | 2 Pages

    A focused cost leadership strategy would be appropriate, in other words, a attention to consumers. Cost focus is a strategy that will focus on a particular buyer groups or a geographic market and attempt to serve only that place, to the exclusion of others. When looking at cost factors, there are very few options available to K-Mart in developing a pricing strategy to compete with Target or Wal-Mart. Therefore, K-Mart would not have many price strategy options available. However by using a cost focus strategy, and matching the quality of well known brands but keeping cost low by eliminating advertising and promotional expenses will save K-Mart money.

    Read More

  • Swot Analysis Of Sony

    1991 Words  | 4 Pages

    ... product. There are different type of technology product provide and it is the trend in Hong Kong in the technology product spending. Moreover, the product life cycle in technology product is very fast. Therefore, it is not easy to lower the cost since the market has large number of potential customer. The bargaining power of the consumer that cannot affect the price when our company introduce the product into the market at the beginning.

    Read More

  • Sonbean Company Case Study

    1015 Words  | 3 Pages

    It is determined by factors such as increase in sales, market share by product and customer base. Activity level as a measure of non-financial issue refers to the volume of input and output that will result from an alternative course of action. The level of activity includes measures such as units of labour, machine hours and units sold. The issues of productivity relate to the performance levels of a decision in terms of output per unit of input. Therefore, the merger decision should evaluate a product’s manufacturing cost, utilization of personnel and facilities against the number of units produced. The quality of products or services refers to the additional values that consumer pay for as price of a product. It is an important non – financial factor as it determines the number of repeated purchases and competitiveness. Therefore, quality of a product will depend on the number of defective products, number of warranty claims, and percentage of scrap and customer

    Read More

  • Competitive Advantage Essay

    1119 Words  | 3 Pages

    In today’s world virtually all businesses are born into competition. There are situations in which multiple organizations offer similar products, a limited number of firms seek the same consumers, and other organizations offer the exact same product just at a different price or in a different variation. So how do firms attempt to outperform their competitors and sustain profits? They create a competitive advantage. A competitive advantage is a business concept that allows firms to outperform their competition by generating greater sales margins/profits or retaining a larger number of consumers. In knowing that different customers are attracted to different attributes companies use a variety of competitive dimensions in order to set themselves apart, these include: cost or price, quality, delivery speed and reliability, and flexibly and new product introduction. Each of these dimensions can be strategically used by an organization to outperform its competitors and ultimately result in giving that firm a distinct competitive advantage.

    Read More

  • An Overview of Business Strategies

    2251 Words  | 5 Pages

    Cost leadership strategy involves the business winning the market share by appealing to cost-conscious and price-sensitive consumers. This is achieved when you have the lowest prices in the target market. The lowest price of value ratio (price compared to what consumers receive). To be successful at offering the lowest price while still achieving profitability and a high return on investment, the business must be able to operate at a lower cost than its competitors. There are three main ways to achieve this.

    Read More

More about Case Analysis Of Consolidated Industries

Open Document