So as a group, the customers of Lululemon have a high level of bargaining power. This is why it is so crucial for Lululemon to create and build relationships with customers in order to make them customers for life. There is a large variety of sports apparel brands making the buying power of consumers high. With a variety of sports apparel brands the difference between their products might not be that different after all. This makes it very important for Columbia has to create brand loyalty within their customers.
Yet, there are strong entry barriers ranging from the large investment costs needed to secure the high quality inputs and technology needed for making goods in this market, the cost of branding, lack of expertise in quality management as well as relationships needed to distribute items produced. For these reasons, the threat of new entrants is significantly reduced in the luxury goods industry. Availability of substitutes The luxury goods industry has a variety of substitutes ranging from counterfeit luxury goods items to accessories available on the mass fashion market. These substitutes, however, are selected on their basis of attractiveness and price yet “knock off” products are selected in the case where those in their social circles do not readily identify them as counterfeit since prestige is what the luxury goods market thrives on. The availability of substitutes is thus a moderate force since reputation is a major reason for individuals purchasing luxury
However, the advantages of group risk cover are best displayed in large companies, while small companies often cannot afford this cover. Due to the limited protection offered by group risk cover, employees may prefer individual insurance or may be disinclined to seek employment elsewhere for fear of losing their current
Even more, since a 401(k) plan is not insured, it is possible to lose money based on the investments you have invested in. Risky investments are meant to either result in a large capital gain or a large capital loss; however, remaining conservative will not guarantee you payout you desire. Therefore, it is recommended to spread out your investments to minimize the possible capital losses (Advantages and Disadvantages to 401(k) Plans, (n.d.), p. 1). Consequently, employers are able to limit employees on how much they would like to contribute; with this intention, the employee would not be able to save as much as he or she wants
The technique used by the company, moisture-wicking fabrics is designed to accommodate different climates. After beginning to use high innovative textile for the sports apparel, the company observed an increase in sells which made it well known to sell globally from the North American market. Presently, Under Armour targets a wide range of customers with a business strategy to take over the sportswear apparel market. The distribution channel of Under Armour products is via wholesales and retails. Despite the fact that Under Armour is quite a small firm in relation to its major competitors, Nike, Adidas, Columbia Sportswear, and SportHill; the company has the aura of products being loved by athletes at all sporting levels.
Selling well-designed and very expensive products, Nike is positioned as a premium brand. It is recognized for the quality and has gained the reputation all over the world. Due to its higher quality, its Prices are usually higher than the normal brand which makes the customers to perceive it as high-end product. Some of the major competitors of Nike include Adidas, Reebok, and Under Armour. Illustration 1: Nike’s revenue break- down by product category: 2Q15 Case Study: A Compelling Logo and Tagline: In Greek mythology, the name-Nike is associated to the “goddess of success”.
Furthermore historical cost is more relevant for investor to make a wise decision because they are relying on the factor of “how much has already been earned rather than how much they can earn”. Mostly some of people like to use this approach because it helps to minimize the risk of manipulation of figures by the managers. However there are some disadvantage from applying historical cost approach which is we are unable to guarantee the quality of the information
However not many people want to have responsibility for a child that isn’t biologically theirs. Also, many people believe that adoption is expensive. Adoption can be expensive, but so is everything else in life. Adoption is a selfless act, the expenses and costs of it should not be significant. The final problem is that international adoption can lead to human trafficking.
Bargaining Power of Buyers The level of bargaining power of buyers is moderate because one of the reason is Coles does not have much competitors to compete with.Their Consumers can switch brand easily because they are very sensitive to price and will compare and choose the cheapest alternative. However, the Federal Government and ACCC has set a restriction to lower down the competition barriers to allow new competitors to enter the market which will widen consumers choice and lead to increase of bargaining power of buyer level to high. Threat of Substitutes The level of threat of substitutes is high, this means that Coles has a lot of indirect competitors such as farmers’ markets, specialist grocery stores and convenience stores. These indirect competitors posed a serious threat to Coles. If a farmers’ markets were to expand in offering more variety of products, they would be able to compete directly with supermarkets.
In this regard, there is an opinion that professionals do not look in the direction of crowdsourcing, as they value their time to spend it for nothing. • Also crowdsourcing is not always the cheapest way. For example, the creation of a logo or design is often cheaper to buy by a cheap designer. Also the need to allocate resources to viewing options, communication with the audience, advertising support also require resources. • Another disadvantage is the leak of information.
The Department Stores industry is a highly competitive retail industry. The level of competition is so intense. Not only these competitors produce similar products, but also offer same services to consumers. In order to excel its business and social image in the world, each firm has used a unique effective strategy to maintain its position in the overall market industry. Target Business Strategy: Differentiation Strategic Position: Like almost every company operates in the industry, it is true that Target competes by offering low prices and maximizing savings; however, that is not exactly what they are trying to sell.