Reference no: EM133931023
Assignment:
Rephase these paragraph as best as possible
Threat of New Entry
Hydro-Air may face the threat of emerging companies seeking to enter the water supply industry because the barriers to entry are low and the government is seeking to privatize the water supply to cover the country's demand. Established companies such as the National water commission may pose a significant threat to Hydro Air based on brand loyalty. Also, the technology needed to operate in the market may easily be bought by these companies and would ultimately be able to weaken the position of Hydro-Air. Through the implementation of lower pricing and reduce costs of resources. Hydro-Air will be able to manage all these challenges and build effective barriers to safeguard its competitive edge.
Power of Suppliers
Hydro-Air outsources its generators from India. This may result in not getting the product in the agreed timeframe which will eventually affect the supply of the business. Suppliers in dominant positions can decrease the margins that hydro can earn in the market. Powerful suppliers can use their negotiating power to extract higher prices from the hydro-air lowering its profitability.
Buyer Power
Hydro-Air is targeting customers who want the unique factor of sustainable development and unprecedented advanced technological aspect of the product which means they are less to compare based on price but rather based on quality and product offering.
The threat of Substitution
The threat of a substitute product or service is high since there is very little difference in product offerings being offered across the industry. As a result, consumers may leave from one firm to another based on: how affordable it is to move their business and the existence of alternative options that may fare better with respect to quality and meeting their immediate needs. Especially in such a widespread industry.
Competitive Rivalry
The rivalry among the existing company in the industry is intense as the local market is highly fragmented. There are small companies operating alongside larger, recognizable brands while at least breaking even.
Key Success Factors In The Industry:
? Continued innovation and upgrading of our technologies and techniques.
? Implementing a strong management team.
? Continuous market research and growth of our market share.