Business transaction industry analysis threat of new

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Unformatted text preview: ajor currencies (USD , Euro) Global Factors ♦ Globalization – leading to more integrated markets ♦ Borderless business transaction Industry Analysis Threat of New Entrants ♦ LOW – Economies of Scale (truck, airplane, global network) – High capital requirement Intensity of Rivalry Among Competitors ♦ High – Global competitors – UPS, TNT, DHL (with equally strong resources) – High fixed cost and high exit barrier lead to aggressive competition Threat of Substitutes ♦ LOW – Minimal substitute products available for physical goods – Only some documents can be sent by Internet, Email and Fax Power of Suppliers ♦ Depend on type of purchases ♦ HIGH – Aircraft ♦ LOW – IT products – Truck – Maintenances and repairs Power of Buyers ♦ HIGH – Intense competition in express delivery industry – Low switching cost – More bargaining power for corporate customers (e.g. Dell Computers, Cisco Systems) Competitive Environment Analysis Competitive Environment Analysis ♦ Four leadin...
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This note was uploaded on 10/17/2013 for the course MGT 435 taught by Professor Staff during the Summer '08 term at Oakland University.

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