Barriers to entry

threat is high, incumbents must hold down their prices or boost investment to deter new competitors. The threat of entry in an industry depends on the height of entry barriers that are present and on the reaction entrants can expect from incumbents It is the threat of entry, not whether entry actually occurs, that holds down profitability. Barriers to entry. Entry barriers are advantages that incumbents have relative to new entrants. There are seven major sources: 1. Supply-side economies

1. THREAT OF ENTRY New entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices, costs, and the rate of investment necessary to compete. When the threat is high, incumbents must hold down their prices or boost investment to deter new competitors. The threat of entry in an industry depends on the height of entry barriers that are present and on the reaction entrants can expect from incumbents. If entry barriers are low and newcomers

increased by 17, 4 % (1993 to 2002)(case P757). Then, the threat of potential entrants isn’t very dangerous because of many barriers to entry. Indeed, initial investments (fixed costs) such as factories and machines are very expansive. Thus, more chocolate’s volume is big, less cost will be high: economies of scale. Barriers are all the more important because of difficulties to access not only supply but also distribution channels. For threat of substitutes, chocolate has to cope with a lot of substitutes

Touchstone Pictures, and Hollywood Pictures and Miramax Films. ­ Walt Disney Studios Motion Pictures International is the studio's international distribution arm. ­ Walt Disney Studios Home Entertainment distributes Disney and other film titles to the rental and sell-through home entertainment markets worldwide. ­ Disney Music Group distributes original music and motion picture soundtracks under Walt Disney Records, Hollywood Records, and Lyric Street Records. Parks and Resorts : featuring

transactions that develop from a competitive bidding process which is completed through the internet and therefore can be accessed by a large community of people. The use of the internet to facilitate the buying and selling of goods and services is known as e-commerce (Slack, Chambers & Johnston, 2007). It can be compared to Skype, where the internet is used as the telephone source. Here the internet is used as the market source and therefore builds the platform of online auction markets. Ebay is the online

Concerning the individual question I chose to analyse the competitive advantage of Amazon on the French’s market. Amazon is a US multinational, specialized in the electronic commerce. This company started as an online bookstore. Since 1998, the company sells many products as CDs, DVDs, cars, TV, etc. The French subsidiary company was launched in 2000. The e-commerce market is growing up more and more in France within the space of a few years. In fact the turnover of the e-commerce increases year

did they manage to this success? What are the issues Zara have to face and which solutions does Zara have? Key success factors: - Design o 3 product lines (women, men and children) o Current season and continuing in-season development o Based on customers desires Zara’s product development teams are constantly researching the market by traveling to universities, nightclubs around the world to find new trends. Moreover, they use their young and international staff to interpret the

use the PESTEL tool, which to group the factors that constitute the environment of your business. These factors must be taken in account when things are changing. The company will move at different ways of continuing to its environment. We will do PESTEL of France, a country representative of your global market. Moreover, this country represents 67.5% of your market share. PESTEL, in your domestic Market: France 1 2 1.1.2 Porter’s Diamond Now, we are going to use the “Porter’s Diamond”

environment: customers, providers, competitors, bank… Learning objectives  This chapter covers the following topics : * Static & dynamics views of competition * The structure-conduct-performance paradigm * The Chicago school approach to the study of competition Key terms Austrian school Chicago school Collusion hypothesis Distinctive capabilities Efficiency hypothesis Five forces model New industrial organization SCP paradigm Value chain Issues in industrial Organization

the first trader in the world and that is why companies from others countries have the desire to export their goods in Europe or even wants to establish within the territory of the European Union. This open market has brought growing prosperity to all its member states. The Union therefore takes a lead in efforts to open up world trade for the benefit of rich and poor countries. Firstly, it is important to know how the relations between the EU and Asia are in terms of trades nowadays. It appears