Case Analysis Of Hup Seg
1.1.1 Threat of Substitutes Both company in the same industry or in different sectors of the enterprise, may be due to the production of products are substitutes, which between them have a mutual competition, which originated in competition substitutes will affect a variety of forms industry competition strategy of existing enterprises. In the case of Hup Seng, the threat of substitutes is rated as high because the accessibility of substitute products is very wide. Competitors such as Julie’s have made their products as exceptional and with high quality as possible with lower costs to attract buyer inclination to substitutes. Customers can choose others biscuits or cakes instead of eating scones that made by Hup Seng therefore Hup Seng will …show more content…
Those newcomers have to spend a lot effort to overcome the existing customer loyalty on the products of Hup Seng. Therefore, it is not easy for newcomers to entry the biscuit manufacturing industry and affects the position of Hup Seng. 1.1.3 Competitive Rivalry Most companies in the industry, mutual interests are closely linked as the overall competitive strategy of each part of the business strategy, its goals is to make their own business to obtain advantages compared to competitors, so in implementation will inevitably produce conflict and confrontation phenomenon, these conflicts and confrontation constitute the existing competition among enterprises. Existing competition among enterprises is often reflected in the price, advertising, products, service and other aspects, the competitive strength of many …show more content…
With the same factors as we mention before, buyers are buying a standardized product, while the seller to purchase products in the economy is also entirely feasible to multiple.Buyers can easily convert to other substitutes s the competitors can provide substitutes to replace Hup Seng with low transaction costs, customers can simply switch to other suppliers such as London Biscuits, Massimo and etc. Luckily, price of the products of Hup Seng still deem as standard than other biscuits manufacturers. Therefore, the bargaining power of customers is rated high due to the low switching
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