From the Pillars of Civilization to the Pillars of Law As sweat dripped down my nose and mixed with the dirt, I yelled, "I found glass!" Glass is considered a rare find, and upon hearing my announcement the excavation team stopped digging. Later, as I sat under the overhang on the laboratory roof patiently brushing dirt off a pottery shard and reconstructing a pot from the shard, I realized that archeology parallels the process of producing a paper, piece by piece and note-card by note-card. I came to Mallorca, Spain because of my passion for Egyptology and archeology. I was determined to excavate, and although Mallorca is not Egypt, this was my opportunity to do so.
Boutiques don't seem to produce adequate returns and the cost of maintaining them is high. Repeat customers are loyal to you because of your consistent high quality, and the breath of sizes and styles. This means that the bargaining power of your buyers is high (see exhibit 1). If quality decreases, individuals will stop purchasing the product from department stores and in turn they will stop as well. Moreover, suppliers have low bargaining power because if they do not produce the quality materials, you will stop buying from them and there is high competition among a few firms in the luxury clothing industry.
PORTER’S FIVE FORCES MODEL 1. Rivalry Among Existing Competitors - (High) • Numerous and equally balanced competitors – As there are already large numbers of competitors in this industry, rivalry for better quality at a cheaper price is quite high. • Shorter Product Life-Cycle – As the technology is growing at a rapid pace, the life cycle of products has become relatively shorter. • High R&D costs – To come up with a better or a substitute product with better added features it requires great deal of investment in research and development which can be very risky because if the product fails then the costs incurred are sunk costs and cannot be recovered. • Imitation of technology – As the concept of reverse engineering has enabled everyone to imitate the technology that the rival company uses, it becomes a difficult task to maintain exclusivity and uniqueness.
The Shoe Industry The shoe industry is one of the biggest moneymakers in the market, but it's facing many changes, rushes, and difficulties. The big power in the industry is Nike inc. which all the other companies are trying to be like. Some changes are the industry as a whole is moving there factories to the far east such as China. The reason for this is they are trying to save costs for producing there shoes by paying there workers less because they are in the far east. Nike and Reebok have already been in the east.
High intensity of rivalry can be expected among the numerous competitors of this industry. Most of the products have been around for a while now, so slow industry growth can occur with a lack of innovation. Augmented capacity can also become disruptive to the industry as economies of scale require that capacity must be added in large increments. Unless something is dramatically different, all of the weight management companies are competing for the same market
Its long history of financial... ... middle of paper ... ...was too high, thus Jager’s strategy to achieve sales growth and develop new products quickly did the opposite for the company as sales growth continued to decline. The current competitive situation for P&G is that it is one of the largest and most successful consumer products companies. This is evident in the high volume of sales and profits experienced by the company. Also, the company has updated all of its brands and created new product categories through innovation of the products, thus P&G is considered a leader in the consumer market. On the other hand, the company made cuts in its capital and research and development spending (which was in line with that of its rivals) in order to increase profits, which may serve to hinder the growth of the company.
Philips’ success during the post-war era is mainly attributed to the NO’s autonomy, the culture, and the corporate accommodation. NOs had an autonomous capability to develop product specific to the local demand. Because Philips employed a worldwide geographic structure, each NO unit acted as an independent company. Because of its autonomy, NOs had the majority control over the product development, the sales, and the operating budget. This enabled NOs to respond quickly to meet the specific changes in local demands and to develop their own products.
Nowadays, most companies tend to compete to gain the customer’s loyalty by providing purchasers diverse programs namely creating brand communities, offering excellent customer service and developing loyalty programs. Customer loyalty means people buy products from the same manufacturer repeatedly rather than from other suppliers. Typically, as marketing managers, are providing excellent facility to obtain the customer’s needs and interest in long-lasting relationship, for instance, loyalty program. It considered one of the value propositions that a marketer can offer a potential customer whichever can come in many forms. In our competitive market, maintaining customer loyalty is obviously a key goal for any marketing managers, customer experience programs are the most effective way to drive customer loyalty when customers are engaged on an emotional, intellectual, or even spiritual level, and when a customer cherishes a product or service before, during and after its use (Bloemer and Kasper, 1995).
Firstly, these deals were quite lengthy as they would involve a number of steps such as pilot production, in house training and technology transfer. Even after these steps were perfectly executed, revenue from the deals were dependent upon the commercial success of the clients product. Tessera also had adoption issues, especially with its chip scale packaging technology. Switching over to this new technology involved a lot of capital risk and no company was ready to radically modify their manufacturing line. So Tessara not only had to demonstrate that its technology was better than the conventional technique, It also had to set up huge manufacturing lines on its site to show the commercial viability of the technology.
As firms continue to expand their operations, they have often relied on franchising to create a more prominent presence nationwide. While franchising may seem to be a natural business practices, it is not without its share of benefits and hindrances. In the case of benefits, franchised firms have their brand’s pre-attached reputation which facilitates attracting customers as they already know the brand compared to an independent establishment. This assists in reducing advertising costs as they are spread nationwide and does not require introducing customers to the brand. Another benefit of franchising compared to independent businesses is that their startup costs are relatively lower as the franchisor is solely responsible for purchasing the