Analysis Of The Curtain Manufacturing Industry
explanatory Essay
785 words
Industry and competitor analysis. This analysis gives insight into the industry and market a business intends to operate in. Rivalry among existing firms Number and balance of competitors: In this industry there are a considerable amount of players. However price competition is not highly prevalent as businesses charge customers for the quality of the finished good and the service provided. Prices charged vary according to the type of curtain fabric and designs. Therefore customers are willing to pay a higher price for products with higher quality fabrics and designs. Degree of difference between products: Curtains are similar in structure as it is material suspended from above on a rail. However the designs, colors and the quality of …show more content…
In this essay, the author
- Explains that this analysis gives insight into the industry and market a business intends to operate in.
- Opines that price competition is not highly prevalent in the curtain industry, as businesses charge customers for the quality of the finished good and the service provided.
- Explains that curtains are similar in structure as it is material suspended from above on a rail, but the designs, colors and the quality of the products vary greatly.
- Opines that singaporeans are willing to spend money to make their abode more comfortable and beautiful.
- Explains that fixed costs in a business setting include rent, insurance, vehicle loan and salaries.
- Explains that fabric manufacturers and plastic or steel curtain rail manufacturers are the suppliers in this industry.
- Explains that the amount of suppliers in this industry is plenteous, which reduces the bargaining power. businesses can switch to a different supplier in the event one supplier choses to increase prices.
- Explains that these are fixed costs that buyers encounter when switching or changing from one supplier to another. there are low or no switching costs.
- Opines that the lack of attractive substitutes for fabric curtains could enhance the bargaining power of suppliers.
- Explains that fabric manufacturers have a high chance of entering the curtain manufacturing business, which enhances the bargaining power of suppliers.
- Explains that buyers of curtains are large in number, which indicates that they are not concentrated thus lowering their ability to affect the profitability of the curtain manufacturers. however, high income earners are targeted to charge a premium price.
- Explains that curtains are a much needed product for any household. buyers are more sensitive to the price it pays and would bargain to get the best price for the product.
- Analyzes the degree to which a supplier's product differs from its competitors. curtains differ from supplier to supplier when taking into consideration the types of fabrics, the design and the quality of the finished product.
- Opines that the threat of a consumer entering the curtain industry is quite low, but buyers could enter the industry as barriers to entry are low.
- Explains that plastic or wooden blinds are used in office settings, but in homes and hotels, they are rarely used as curtains give a personal touch to the interior design.
- Explains that the barriers to entry in this industry are moderate to low. however, customers want quality goods and excellent customer service.
183). There is a high possibility of fabric manufacturers entering the curtain manufacturing business as the barriers for entry are quite low. This enhances the bargaining power of suppliers. Bargaining power of buyers: Buyer group concentration The buyers of curtains are large in number which indicates that buyers are not concentrated thus lowering their ability to affect the profitability of the curtain manufacturers. However if the high income earners are targeted to charge a premium price, this case would present a concentration of buyers and they are able to pressurize firms in the curtain manufacturing industry to lower costs. Buyer’s costs: Curtains are a much needed product for any household. Therefore buyers will be more sensitive to the price it pays and would bargain to get the best price for the product. Degree of standardization of supplier’s …show more content…
However there is a possibility that buyers could enter the industry as barriers to entry are low. Threat of Substitutes: Substitute for curtains are very low. It is quite common to see plastic or wooden blinds used in office settings. However in homes and hotels this is rarely seen as curtains give a personal touch to the interior design and makes living spaces more comfortable. In luxury hotels and homes it is quite evident how curtains are used to elevate the elegance and sophistication. Different textures and colors of fabric are used to create elegant spaces. In the event plastic or wooden blinds or such substitutes were used, the space would definitely not have the same ambience. Threat of new entrants: The barriers to entry in this industry is quite moderate to low. Therefore there is a threat of new entrants. However customers wish to have quality goods and excellent customer service. By differentiating our business from competitors by offering durable products with high customer service standards this threat can be
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- Explains that digital java inc. was acquired as a vertical integration step that improved the caliber and appeal of the company's on-premise coffee and beverage products allowing kkd to be more competitive in the coffee segment.
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- Argues that tru should not give up its toy business. be a devil's advocate, arguing an opposing position for full coverage of relevant aspects.
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