videos. Buyer programs/ loyalty incentives would have to be instituted in order to keep clientele. Threat of New Entrants - Although videos are available on several different platforms, it is still difficult to obtain licensing and support from the distributor in order to sell legally. Competitive Rivalry - There are a number of different ways to obtain videos both legally and illegally. the competition is fierce. There are online store, website downloads, on-demand services from cable companies or WiFi companies. the competitors in the video industry are abundant. I do not think that the video industry will be a good investment. The threat of new entry is high; Buyer power is too strong if lostto the competition, and customers are able …show more content…
Rivalry among Existing Competitors: This is high when competition is fierce in a market and low when competitors are more complacent. When looking at the video market, there are so many different options today. People utilize smart tv's, DVD's for entertainment, Netflix, Redbox, going to the movies and so much more. When you look at the buying power of the video market a lot of things are competitive. As I stated above, people are now purchasing smart tv's that give them the option of having netflix included, so they don't necessarily have to go to the movies or purchase items from Redbox. Also, because the prices at movie theaters are so expensive a lot of people download and stream a variety of different apps like HULU or purchase ROKU for TV instead of paying high prices for cable. Supplier Power in the video market has changed and I believe will constantly change. Prices will most likely continue to increase, because companies always find a new way to make telvisions better. Who doesn't want the latest and the best in the …show more content…
With video gaming systems for instance, there always seem to be either some type of upgrade to the XBOX or something totally new and different. Computers are always getting new upgrades as well as televisions. Something new or a new brand is always being added in the video world to make life seem easier and less strenuous. Rivalry among Existing Competitors can be hard on both the business and the consumer. When you look at the video world, as I stated earlier HULU, REDBOX, NETFLIX are all competing for business. They each offer discounts and promotions to draw in consumers. Computer companies also do the same things, I know that DELL always sends me discounts at certain times of the year for promotions as well as APPLE and the other companies. Every company is always doing something to outbeat the other for business and to keep the loyalty of the consumers they already have. I agree that markets change and competition is always going to be a major factor in any business. However, I feel that if a consumer has been with a company for a certain period of time, then there should be some type of customer loyalty. I believe the company should always do everything to continue to please that consumer with whatever means
As soon as a competitor changes their plans or a new competition comes along customers may not want to change their mind about going to a different location (Belonwu). Having a “rivalry” may help concentrate on what needs to be improved in a business depending on what their weaknesses and strengths are. Having competition may be wonderful for the consumers because they have different choices to select what kind of brand of clothing, shoes, or a variety of tools, food and etc. Being able to choose a certain type of customer, may bring in a flow of customers that they’re are trying to reach out for; such as Walmart, they chose to sell products that are family oriented while having different areas in the store pertaining to men’s, women’s, and children’s necessities. If a customer is loyal and you all of a sudden are raising prices on items where they can get goods at a lower price elsewhere, that is causing a business to be disloyal due to competition.
According to Porter, the key factors rising rivalry among firms in an industry are equally-balanced competitors, market maturity, high exit barriers and high fixed costs. And all of these factors are there in teams in the National Basketball Association (NBA).
Other competitive activities included sales promotion, advertising, and product differentiation. Larger companies have a much greater financial ability to be able to invest more into advertising than a new business starting out would be able to. Shelf space and competitive pricing were two major issues that affected sales. Because they are already recognizable brands, they can afford to purchase the best shelf space. Consumers will see their products before noticing other, not so well known products.
Competitive rivalry examines how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each is capable of doing. (Arline, 2015).
be affected by the increased use of new technology such as televisions. now being attached to DVD?s and VCR?S, downloading, buying illegal. products. The.. Processes? the need to cut costs, speed up production and compete.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
1) As companies trying to sell consumers stuff, they are not competing with them, only other companies,
Degree of Rivalry - Very High to Intense – Multiple competitors, high strategic stakes, innovation often easily imitated, and low switching costs for consumers
Cable companies are now seeing this as a major threat and are being proactive offering new and current customer’s discounts, smaller TV packages, and bundles in hopes to retain their customers. Not to mention, While, Cable companies are slowly adapting to the new trend of streaming TV some are just now getting in the game, by offering their online services such as Sling TV (Dish Network), Time Warner’s App, Contour Flex (Cox Communications) and Stream (Comcast). However, that is just not enough, in recent article Cord-Cutting Explodes: 22 Million U.S. Adults Will Have Canceled Cable, Satellite TV by End of 2017 (Spangler) meaning, these consumers have either chose to completely cut the cord or have transitioned to alternate sources.
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
New entrants to an industry, with a desire to gain market share, will put pressure on prices, costs and capital needed to compete. It can affect the profit potential.
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by
Price competition among rivals is close to nil, industry participants are very competitive when it comes to product differentiation. Product offerings to satisfy consumer demands include a variety of coffee, juices, muffins, bagels, cookies, cream cheese sandwiches, soups and other miscellaneous items.