By comparison firms operating within Iknoors markets sell their services at

By comparison firms operating within iknoors markets

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few substitutes, most of them provide high quality services and products but are expensive. By comparison, firms operating within Iknoor’s markets sell their services at affordable prices than substitutes, with satisfactory quality (Armstrong et al. 67). In such a way, the inference drawn here is that purchasers are incapable of switching to firms providing substitute services or products. This translates into limited threat of alternative products is these industries. How Iknoor can tackle the Threat of Substitutes Despite the limited number of firms offering services that can substitute those offered by Iknoor, understanding how to offset their market presence is critical. Notably, the organization can embark on the provision of high quality trucking services. Without any unique products in the market, buyers are only enticed by services or goods that match their preferences (Safari, Farhang, and Rajabzadehyazdi 72). Therefore, contractors can be attracted by Iknoor’s services since the firm provides quality trucks and related services at low prices compared to other organizations that offer quality trucks at high prices. In addition to offering quality goods, Iknoor can differentiate its brand portfolios. According to Baumgartner and Romana, product differentiation ensures that purchasers perceive a company’s offerings as unique, which guarantee that they are unable to switch among firms selling substitutes but lack any unique benefits (90). In this regard, Iknoor should integrate various unique benefits to prospective
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Surname 17 consumers by evaluating their preferences using market research, and customizing them based on customer needs. Rivalry among Existing Firms (High) Iknoor operates in two industries with several competitors. The trucking and construction industries have various small and large organizations operating within Ontario or the entire Canada. This implies that any corporation within the market cannot make any strategic move without others noticing. As such, companies restructure their corporate processes based on what other industry rivals’ strategies to become competitive. Additionally, the large number of competitors within the market suggests that most have varying shares in the marketplace (Arain 106). To increase their reach in the industries, several players engage in aggressive marketing and deceitful business practices to gain relevance and become market leaders. The inference drawn from this is that rivalry amongst existing organization is a strong force in these industries. What is more, the trucking and construction industries are forecast to grow in the coming years within both Ontario and the greater Canada (Barla et al. 265). With these growth trends in different market segments, it is likely that more players will be attracted to the industries while existing firms can engage in competitive actions to capture market share in newer niches. This implies that a growing market will further exacerbate the rivalry among prospective and existing organizations within the two industries.
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  • Fall '15
  • Mr. Njoroge

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