Diagnostic of existing complex influences of Rivalry, which is one of Five Porter ‘s Forces on Business
In general speaking, influences of the intensity of rivalry between firms are regulated by the following features of industry (QuickMBA Strategic Management, 2010):
Number of Firms: the most firms are present in the field of the market in looking for an advantage; the more intensity is achieved in competition. Rivalry intensifies when goods or services share similar market.
Slow market growth: in markets in expansion process, is easy to improve revenues because it is a consequence of market ‘s growing; other way, firms have to fight for market share.
High fixed cost: firms have to maintain high levels of production to achieve the lowest This can occurred e.g., when your assets are so specific that is impossible to be sold to other buyer in another industry.
A diversity of rivals: when different cultures, histories and philosophies are present as your rivals, this can makes an industry unstable.
Industry shakeout: sometimes and for a particular circumstance, suddenly market start to growth and potential for high profits motivates new firms to enter a market and traditional firms to increase production, so many products creates a situation of market ‘s saturation with intense competition, price wars and company failures.
As an outcome of strategic planning process carried out in the organization selected, recommendations were issued to design a pilot plan focusing in the following topics and applicable on the main product:
Variation of Price in order to obtain a temporary advantage
Improve the differentiation of the product, improving characteristics, implementing innovations on manufacture processes and on the product itself.
A better and creative use of distribution chains as vertical integration or innovative use of new but not traditional distribution channels e.g. This action plan is based in giving empathy in close the gap between styles of learning and styles of teaching to obtain the maximum gain in transmission of knowledges from lecturers to
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