Competitive environment and strength of a company, Business Management

Competitive Environment and Strength of a Company

Over the years the growth in Glass industry had slowed down and margins are shrinking in high volume markets. The reason attributable to it is the logic that initially demand was huge and growth for market was tremendous on account of rapid infrastructure development that was taking place fuelled by rapid industrialization. The first mover advantage always existed and the one like XYZ Glass who entered market at that time were able to capture huge markets and earned good money but as more and more competitors joined in processes improved, production cost lowered and it lead to price competition leading to shrinking margins for high volume demand product and those companies who were vertically integrated or had lower cost of operations survived while other started bleeding. The other story was of business focussed on making available products that were customized to demands and require less efficient product cycle and high quality output. Because of its typical issues involved it offered very lucrative margin but volume was not very attractive for big players to foray into it as it reqd. Completely different operation and mgmt. Style.

To talk about company's strength it would clearly be one in the second type of markets - speciality products. Since its inception in 80's company has always focussed itself into speciality products segment by offering converted pieces from large sheet which at that time was integral part of this segment. Over time as segment got redefined and many competitors with better and faster production technique having vertical integration entered they shrunk margins making it no so attractive for companies like this. This speaks that company's strength is to offer products that have to be customized and produced and require precision and quality control and an increased amount of individual effort. They are not the one who is into volume games.

 

Posted Date: 3/2/2013 1:31:20 AM | Location : United States







Related Discussions:- Competitive environment and strength of a company, Assignment Help, Ask Question on Competitive environment and strength of a company, Get Answer, Expert's Help, Competitive environment and strength of a company Discussions

Write discussion on Competitive environment and strength of a company
Your posts are moderated
Related Questions
Question 1 The world economy is globalizing at an accelerating pace. What do you mean by globalization? Describe the merits and demerits of Globalization Question 2 The

QUESTION a) (i) Clearly differentiate between the two primary types of Internet e-banking websites and outline the risks associated with each one of them. (ii) Why do we use

The assignment has been designed to marry the theoretical analysis and practical application of the concepts of 'Managing Operations'. This assignment will therefore require studen

Question 1 Identify and assess the different IRR measurement techniques implemented in a bank Question 2 Describe the use of VaR for capital requirement for market risk Ques

contrast the advantages and disadvantages on just-in-learning

My response to both questions was yes. I an of the view that if the purchase of a cell phone is required to ensure business continuity, every one should key into the decision.

what questions will you expect from investors and what are the possible answers?

QUESTION 1 The following are six major types of systems that serve the various organizational needs: Executive Support Systems (ESS) Management Information Systems (MI

Briefly introduce the subject and describe its key business or operations. Appraise how it plans and manages quality. Analyse how quality can be used to support the strategies o

QUESTION 1 An effective team is one which achieves its tasks and satisfies its members. (a) Show, with examples, the characteristics of an effective team? (b) Describe ho