Fast Food And Beverage Industry Essay

Industry Risks
The trends affect the long-term and short-term demand and price of the product and service. The government dictates the price swings that would push the market prices higher or lower in responds to the economic that impact on the production and retail price of the business’ products. The supply and demand in the bag industry has a strong bargaining power for buyers and suppliers since the buyers has a large group of sellers to choose from driving the products price lower. Numerous numbers of competitors in the market with a small bag manufacturing industry in the country that’s only dominant in Marikina, Bulacan and Bataan allows the suppliers or manufacturer to push a higher price for their services. The Bag and Luggage Industry is hard to penetrate due to numerous number of established commercial retail competitors and the inventories are slow moving due to purchase behavior of consumers.

YES
Its price are generally higher than other bag retailers. YES
It will be hard for other brands to raise their price due to competition. YES strengthen its brand and product value to maintain its price strategy.
Sustainable Competitive Advantage

Assessment for price: Jansport’s price is competitive ranging from Php 1,990 to Php 2,990. Jansport continually strengthen its brand and product value by providing durable bag with a wide variation of colors and designs and from its continuous marketing efforts to strengthen its brand influence. This factors allows them to have a retail price higher than its competitors and still generate increase in sales. There price strategy is hard to imitate by their competitors due to the presence of strong competition making it Jansport’s sustainable competitive advantage.

Jansport Valuable Rare Imperfectly Imitable Organized to Capture Value Result