Their products does not only capture the hearts of customers in Malaysia, but also other countries that it cover such as Africa, Europe countries, North America, Asia and Oceania. Moreover, Hup Seng should continue to improve and upgrade their products and services in order to attain higher
Threats of substitute product - high • Buyers are likely to shift to other products considering the weather conditions. • Low price jeans. • Substitute like formals and trousers Bargaining power of customer – high • The power of buyers is comparatively high considering the fact that they can simply change to other brands. • Converting cost is low. • substitutes Competitive rivalry – high • high chance for customers to shift to substitute brands – ( CK jeans , guess jeans, DKNY jeans and Diesel) • mid – class employees prefers low rated jeans • Low level of product difference will increase competition because of no brand ID.
These alternatives usually exist to replace other products and attract the already existing firms’ customers. The existence of substitutes brings a huge threat for those organizations which are already competing within the industry, because the customers would simply shift to the substituted product and talk to other people about it which can lead to more customers shifting to those alternatives. Nevertheless, substitution is perceived as being very limited within the construction industry due to the lack of substitutes. But there is always an external threat on the construction industry within Bahrain, for example: there are organizations that provide buildings made out of wood rather than cement, or real estate dealers who provide customers with readymade houses. However contractors from neighbor countries may be desired by the customer for building, in such cases these contractors are not seen as potential entrants but alternatives to the existing
These are the key aspects that can affect the organisation and management structure of a firm, all these interpersonal communication, management attitude, and social norms have yet been taken into consideration for Porter’s diamond framework. Moreover, Porter’s diamond framework does not cover how national culture will then affect the competitiveness in the national business system (Bosch & Man, 1997). Porter also mentioned that in firm structure and strategy, Japan business system prefers to maintain long-term relationship with their suppliers in the automobile industry is not based on their cultural perspective but rather it is due to pressure under those economic circumstances. This sentence is proven wrong by Whitley (1991), Japanese culture is well known for close connection and long-term employment in order to make their business system unique. Businesses in Japan have strong bonding with their partners to create strategies in reducing uncertainties, likewise these cultural factors is the action that leads to keiretsu being formed in Japan business system (Earley & Singh,
2.2 Industry Analysis - Porter’s 5 Forces Analysis Threat of Substitutes Bicycles and services from unknown manufacturers can provide huge substitution threats. Just as alarming for bicycle manufacturers is the internet: it is developing as an excellent medium for cheap marketing services. The price that consumer are willing to pay for a product is depends the quantity and the availability of substitute products. When a close substitute for a product is exist, industry profitability is suppressed because consumer will pick out if the price are high. Example consumer will compare the price of other bicycles with this bicycle in terms of quality and appearance, a customer can easily get another bicycle which is less difference but in more cheaper
Opportunity is always available in the market experience in the business is to identify the oppurtubly and also helps to work through the opportunity attained. the opportunity for our prduct is not very high. Because there are similar substitute products available in the market with wide ranging prices. We are on to increase the profit within 3 years. If we survive 3 years effeciently we are upto open up a factory in other GCC Countries for example
Large enterprises are faced with the plight of lower profits while SME 's in the capital, channel, product and other areas subject to significant competitive pressure, coupled with the impact of a price war. THE THREAT OF NEW ENTRANTS :- I believe that fruit juice industry, the threat of new entrants in the following areas :- Economics of Scale :- In general the economics of scale barriers the entry form or new entrants brined the risk of existing enterprises a strong counter-attack in order to enter the large scale of production. Fruit Juice industry, production lines, excellent processing technology which higher productivity, lower production costs. Industry Counter-Existing Enterprises :- Juice huge market potential, attracting an increasing number of new entrants the market leader in the use of existing resources to counter the strengths, such as control of raw material, increasing the cost of new entrants control terminal sales of the competitors blockade, increasing the cost of sales and other rivals to form barriers to entry. 3.
b) China Zhongwang develop its own talent, particularly in relation to teamwork, pursuit of excellence and innovation. c) China Zhongwang wants sustainable earnings growth and rewards for investors and shareholders. d) Is to be responsible citizen and do business with integrity, which includes community events and supporting charities. e) It is established a business forward into the future.
Hockhua Tonic Malaysia had a different aspect of herbs, seafood and jelly products business. It was established in 1986 after being founded by Mr Chan Tiong Cheng who is the current CEO, which started his American Ginseng wholesale products business that is imported from Canada. In 1987, he and three other partners started to expand the company in Kampong Kranji, Singapore. They started to move into the wholesale business through the distribution products of American Ginseng that was imported from Canada. They have seen the traditional Chinese health products in the market and it was set up by HockHua Ginseng Bird Nest Trading Enterprise.