Colorscope - Colorscope, Inc. What is the external...

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Colorscope, Inc. What is the external environment that Colorscope currently faces? Cheaper technology is lowering entry barriers. Better technology is eroding quality-based competitive advantage. Intense competition from small stand-alones, large national chains, and backward (vertical) integration by large printers.
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Colorscope, Inc. Intense price pressures, and erosion of rents (high margins). What has Colorscope’s competitive advantage been, and why? Reputation for quality - poor quality is extremely costly because pre-press is the last stage at which an error can be detected, mistakes in advertised price can be expensive for content provider to honor, and merchandisers take great pride in their catalogs. 3
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Colorscope, Inc. Fast turnaround - this is very valuable to the content provider because it gives them more time to decide, for example, how much to discount which items (i.e., it gives them more time to observe their competitors actions in a fluid environment). Actual costing differs from normal costing in
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This note was uploaded on 11/19/2011 for the course FINANCE 180.500 taught by Professor Mouse during the Spring '08 term at Johns Hopkins.

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Colorscope - Colorscope, Inc. What is the external...

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