Still others desire to speak with experts (salespeople) while comparing products before making decisions. Direct sales, while attractive to segments of the commercial market, might not be as attractive to small businesses, or to those in need of same day service. Direct sales allow Dell to continue to offer customization at a good price because there is no middleman. This will allow Dell to continue its product differentiation. Sales through electronics and mass market stores, such as Best Buy, Costco, and Walmart, will allow Dell to sell standardized products at a low price.
They are generally made with phone calls, basic SMS/MMS and basic internet and games. Samsung no longer has any phones in this market so this could be a “high” risk area due to the phones costing very little and most of the time are free on contracts. Overall Samsung receives a “medium” rating for these points Industry Rivalry This has a huge impact on Samsung because of strong competitors like LG, Apple, Microsoft, Google and others. With so much competition between the companies and due to the slowdown of the smartphone industry, companies are trying to “steal” other customers from other rival manufactures. This is a very high risk due to the fast adaption of new technologies and because of the extremely high level of competition
Substitute compliments with Amazon continue to address the strong force of substitutes which could threaten the performance of e-commerce. The customers see that it is easier to transfer to other retailers because of low cost switching. The strategic in the company long-term success in definitely in online retail. The low cost and high availability will increase the importance against the company. Future competitors can affect Amazons current customers, but new competitors would have to have a better brand such as in electronics.
Only those brands which prove to be efficient in providing quality products at lesser price are considered by the customers. E commerce being a very important factor as time restricts a lot of people in going to retails shops which some of the retail shops used to increase their market
• Lenovo has the advantage of coordinating PC market and smartphone market and make two businesses achieve synergies. By integrating the R&D resources and the deals with the same vendors and material suppliers, this can lead to the result of lowering cost and time and more manufacturing efficiency. • With the advantages of producing PCs and smartphones, developing an ecosystem in the future that improved cross-product usability can bring a potential competitive advantage. Weaknesses • The acquisitions and the quick merging need to be well managed, or it will easily become a backfire for the company to cause a momentary profit and a constant loss after. • Lenovo did not accurately understand consumer's need and made Moto Z with the modularizing design that the consumers did not desire.
All the accumulated know-how and engineering knowledge of creating mobile devices are strongly connected to the individuals and teams who possess and work with it, nevertheless this form of assets are mostly tacit. It is not effective to acquire the whole company, because of this embeddedness and the fact, that Microsoft is only interested in the limited set of resources. With the JV, Microsoft reduces the risks with sharing it with its partner, and the size of the cooperation is also easier to manage (Hennart and Reddy, 1997). All the above mentioned arguments lead to the conclusion, that in this case, Microsoft would profit from alliance more, than acquire Nokia. • Difficulties in assessing value of target firm For Microsoft it is difficult to assess the value of Nokia, because of the information asymmetries.
This policy has resulted in increasing operational costs which would apparently have a detrimental impact on profit and EPS. Investment in research and development (R&D) is extremely necessary to thrive in the technology industry. However, this too would be extremely costly. Although AT&T has a high number of patents compared to its rivals, not every patent could be turned into a commercially viable product. AT&T has lost some of its market share and customer base to cheap rivals such as Sprint and T-Mobile.
Most of the time, the disruptive product appeals to the low end of the market or creates a completely new market. This market, initially is limited in size and profit margins are not attractive to leading companies which focus on their more profitable markets and continue to improve their existing products marginally. Over time, the disruptive product improves and attracts customers of the main stream market. This shift may attract attention from the leading companies but by then the disruptive product may be much ahead that the previously leading companies struggle to compete. Airbnb is considered as a disruptive innovation or a digital disruption occurred in Real Estate industry due to the company’s innovative internet based business model and its unique appeal to tourists.
Technology spend is also being incurred in the supply chain aspects of the companies to help them manage inventory, manage distributions and lower stock out situations in the market. Though the solutions are costly but it has shown to give profitable results to companies. R&D investments are also being done to come out with newer products with reduced deliveries in line with future regulations. TAKEAWAY We find from the above analysis that the external environment factors in totality do not play a supporting role to the Indian cigarette industry by creating hindrances to the growth of the industry. The major negative impact is because of the taxation regime and the regulations being imposed by the government.
Accordingly, Etisalat’s packages are tricky to normal customer.18 Etisalat may provide good services but its customer service is the opposite. Accordingly, issue resolution is lengthy either customer support or technical support.11 Another weakness is the company’s research and development. The company focuses more on expansion globally. Opportunity Etisalat should consider redesigning their service plan and prices. Their current prices are higher than Du.