Str_WY Essay Example
The five forces are used to analyze the level of competition of a given company in the market, especially in this case the Qwerky writer’s industry. Includes, Threats of new entrants, bargaining power of suppliers, bargaining power of buyers, Threat of substitutes and the industrial rivalry. It ensures that a firm applies its core competencies to the business strategy. The model includes the three forces of horizontal competition and two from the vertical competition.
Firstly, the threat of new entrants into the market. This is brought out by increased profitability that has increased returns attracts more rivals such as LOGITECH K380 and ZAGG limitless. In the example, the Qwerky writers have emerged the markets and plowed good returns on their sales. However, the entrants may be affected by the economies of scale, government policy, capital, customer loyalty. Secondly, the threat of substitutes in the market may affect the functionality of Qwerky writers like due to perceived level of product differentiation and quality.
Thirdly, buying power is high if the buyer has many alternatives and low acting individually. Fourthly the suppliers of the Qwerky writers may determine their skills through the degree of differentiation and strength of distribution channels. Lastly, the industry rivalry is the intensity of competition from the various companies such as Stenotype keyboards which are faster and have a high level of accuracy. The LOGITECH K380 multi-device Bluetooth keyboard which is the most newly preferred keyboard and ZAGG limitless keyboards writers. Apparently too the above companies may offer a huge competition in the market.
In order to launch and produce the Qwerkywriter in Thailand, China or India a comprehensive business level strategy should be put into place. It ensures that they have increased profit maximization and acquiring the markets. By incorporating complementary strategic alliances as one of the business level strategies would hedge and make the sales of Qwerkywriter industries grow. The complementary strategy alliance includes the vertical and the horizontal strategies. It is a strategy to ensure it covers all the potential competitors. By having also, the alliances with the buyers who may pose competition too. Bearing in mind that the companies too in china or Thailand have advancements in technology.
This strategy aims at combining the partner’s firm’s assets in a complementary way and creating new value. It includes the distribution, supplier or the outsourcing alliance to ensure the Qwerkywriter is widely marketed. It relies on the upstream or downstream partners to build a competitive advantage over other companies. The vertical strategy aims at using their skills and capabilities at different stages of the value chain to create value and horizontal strategy in combining the resources and skills to create value at the same stage in the value chain. It focuses on the long-term development and outweighs any competition later on. Due to increased sharing of R&D expenses and technology standards will not only speed up the process but also enhance quality of the product. It also creates an international linkage among the countries in utilization of economies of scale.
The Qwerky industries have a choice to market their products into Europe, Oceania and the United States because they already have a market and their brand name is highly renowned by the people. Therefore, its entry to the market will be no many barriers. There is also a ready market for the Qwerkywriter since most of the people are on the use of technological gadgets. It campaigns have also increased the awareness in the region too. The business level strategy of uncertainty reducing strategy may be employed to hedge against the risks and the uncertainty of the sale of the product. The areas become of interest also due to their disposable income, and high educational standards are correlating. The target segment is the people with a high disposable income and the elites in the area. Taking into account of the Qwerky writer retail price which is at USD 329 therefore the target market is mostly in the developed worlds or countries such as Oceania, Europe and the United states. The success and prosperity of Qwerky writer is much more determined by the disposable income and a ready market offered by the countries
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