barriers to entry forces

2c in order to overcome the popularity of existing

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2c In order to overcome the popularity of existing brands. 2d In order to access skills and key raw materials. The new firm would need to spend a good portion of its money towards training, in order to develop a strong staff. 3. How much capital is required to enter this industry (give a qualitative response such as “very high” compared to other industries or “very low” compared to other industries)? The capital required to enter this industry is very high. 2
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4. Does your firm have any unique capabilities or skills that would make a newcomer find it difficult to compete with you on price? Explain 5. Does your firm have any unique capabilities or skills that would make a newcomer find it difficult to compete with you on quality or features? Explain Because Macy's is consumer- centric, the stores customize to the region the store is located. By individualizing and personalizing a shopper's experience through geographical location, it will be difficult for the company to duplicate this method without using extensive research, which will cost a lot of money. 6. Will a newcomer have to “steal” market share from existing players in order to enter this industry or is the industry growing so fast that no one will suffer from a new entrant? 7. Does any new entrant have to obtain licenses or any other form of regulatory approval in order to enter this industry? Explain 8. What action are you likely to take if a new entrant comes in and competes with you in your market? Will you reduce price? Will you innovate? Depending on what this new entrant does, Macy's could imitate the specific area in which the new company is excelling. If the company decides to do something new, Macy's should innovate. A company's competitive 3
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advantage is what compels people to come to its store, which is why Macy's should create a new feature or come up with a new strategy in order to retain customers. COMPLEMENTS 1. Are there firms in other industries that significantly affect the demand or price or value of the products/services in your industry but are neither buyers nor suppliers to firms in your industry (e.g., Killer Apps for the computer industry; airports for the airline industry etc.). Yes _____ No ____ 1a. If yes, identify these industries BUYERS 1. Who is the typical customer in your industry? An individual or a firm in another industry?
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