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.
One of the competitive advantage that cisco has over QUMU is networking. Cisco’s stand out is their stronger network focus, which allows them to win far more effectively with desktop virtualization than its competitors. In contrast, Qumu focuses on innovation and by building capacities and spending money on research and development. By focusing on these Qumu, new competitors are less likely to enter the market the industry where the established players such as Qumu Corporation keep defining the standards regularly. It significantly reduces the window of the extraordinary for the new firms and discourages new players in the
As Lyft continues to expand its presence in the transit market, external threats become their greatest concern. Lyft is vulnerable to many threats that could affect their financial position and relative market value. Thus, Lyft can expect a decrease in performance because of the factors beyond their control. With increasing competitors for ride-sharing services, large existing competitors such as Uber own a significant relative market share. Additionally, driver and customer loyalty which are influenced by online reviews (technology), can dictate the market strength for Lyft.
Competitive advantage is being run for and more companies are investing in IT in order to reach quality and quantity of goods and services. They are replacing their operating models by using Internet and new software’s. Organizations that are making changes in their sectors by including information technology innovations are gaining competitive advantage. This is called Schumpeterian competition. This turn towards innovations
Blockchain presents data security and privacy implications that would need to be addressed. Some of the current ‘big player’ moves into blockchain are really little more than a sop to the markets to be seen to be ‘doing something’ with blockchain. Some of the startups could be massively disruptive. Only time will tell. However, digital disruption is a business reality in today’s world.
Direct-to-consumer is a full opportunity for FMCG companies, particularly in the e-commerce channel. Recent research have proven that FMCG companies’ executives are underestimating the potential of e-commerce for their business and might be missing on opportunities to prosper on many levels. Manufacturers have started to explore the opportunity to become distributors, to offer a full branded experience to their consumers and go beyond their usual strategic business area. Nestlé launch of Nespresso products and owned stores is a clear example that manufacturers can become much more than just brands and suppliers to retailers : they can be excellent service providers, bring a true added-value to their consumers, a strong brand connection along with additional business and
Disruption is effectively a more violent form of competitive innovation. What Christiansen called ‘new market disruption’ occurs when a new product meets a new customer need – or even better – creates customer desire – like Apple did with the iPod and iPhone. What real disruption does it forces consumers to ask the most primal questions about market places. Planning for digital disruption • Adopting digitally disruptive technologies and processes should be a calculated move after careful and detailed analysis of a company’s risk appetite and its capacity for continual change. • Digital disruption is about creating better brands, resulting in better dialogue with its customers and getting its brands to the market in a faster and more efficient way.
PESTLE Analysis on Walk-in Closet Type E-Commerce business Political • Political Conflicts • Government supporting E-Commerce • Cyber Security Walk in Closet operates under the influence of political factors. Political factors include political conflicts; government changes for example changes in the trading policies. Political Conflict in South Africa in recent times can be seen as a threat to a business like Walk-in closet because political conflicts can lead to decreased opportunities such as walk in closet expanding its reach to other parts of South Africa and therefore diversifying its business. Since E-commerce is a relatively new form of trading, the cyber security maybe a threat to the business. The threat would be that people would be less inclined to shop online.
Cyber risks lead to operational impact, as it affects the daily operations of companies in the industry. For example, companies might face damage to its reputation, have a fall in its share price, as well as disruption of business activities. Thus, the presence of cyber risks is not beneficial to companies as it leads to consequences, which are not favorable in the perspective of a company. b. Technological and Competitor risk Possible risk in the future that could affect the company would be the combination of competitor and technological risk.
Among the different risks that Microsoft Ltd is facing is financial risk. Financial risk is the potential of losing money. Competitors of Microsoft Ltd are rapidly developing and deploying cloud-based services for consumers and business customers. These competitive pressures may result in decreased sales volumes, price reductions, and/or increased operating costs, such as for marketing and sales incentives, resulting in lower revenue, gross margins, and operating income The company is devoting significant resources to develop and deploy their own competing cloud-based software plus services strategies. In addition to software development costs, they are incurring costs to build and maintain infrastructure to support cloud computing services.