A firm may produce a product in a particular industry while another industry produces something similar with a variety of characteristics but not exactly alike. The consumer may favor one substitute product over the other one from another industry. The firm could be affected by competitors in the same industry that don’t offer substitute products. The substitute originates on the outside of an industry in the firm. The substitute can put a limitation on the price of the substitute in the firm although it is made outside the industry. The firms that are prosperous will be have some or no substitutes. For example, the Sam’s Club have many different products sold in their store but they carry their store name brand. Publix sells many different
In addition, the bargaining power of the sources of inputs is high. The switching costs from one supplier to another are high because there are not many substitutes for the particular input for metal products. Besides, the number of suppliers who produce raw metals is small. The threat of substitute is high. There are many different kinds of substitutes for metal product company. These companies may also produce a large variety of product like Slade Company. Therefore, the substitute is low for this market. Only companies that produce high quality are able to not be substituted by the others.
In this article, Journalist Christopher Tkaczyk takes the reader through five days of working at Publix Super Markets. In his day by day account, his main focus is to find the secret as to why Publix's has the "happiest, most motivated workforce in America". He takes a turn at each department in the super market and will see first-hand how the associates interact with the customers He discusses not only the employee satisfaction but he will show a glimpse in customer satisfaction. He explained that Publix's goal is to have their new associates achieve full-time status. The article touched on the loyalty of its workers and how the “annual turnover rate is a miniscule 5% - which makes a mockery of the retail industry average of 65%”.
Threat of Substitutes: Substitution, price-to-performance, and altering costs are all factors that determine the threat of substitutes. Bob’s app informs individuals about products, services, hours, classes, and much more. Gold’s Gym is a corporate fitness facility that created an app to record progress and report health statistics. Gold’s idea differs from Bob’s which decreases the threat of substitution.
1. Publix Supermarkets is a company that prides itself on providing the best customer service to its customers. This includes updating prices, products in-stock, and each store has a properly trained staffed. The company developed an innovative IS, an automated ordering process which allows the grocery department to receive an accurate order.
savings, just like almost everyone else in the industry; however, that is not exactly what they are
Publix. Where Shopping is a Pleasure. In the good United States, people love to eat. Not to say these individuals are not appreciative, but many citizens tend to indulge and appear to take their privileged resources for granted. After all, this country offers a plethora of retail choices ranging from farmer’s markets, meat markets, and neighborhood bodegas (a.k.a.
Monopolistic competition describes a market structure in which relatively many firms supplies a similar but differentiated product, with each firm having a limited degree of controls over price (Mastrianna, 2013). Monopolistic competition also definition with a large number of seller produces different products (Nordhaus and Samuelson, 2010). Monopolistic competition has many sellers to rival for the same group of customer.The major characteristic of monopolistic competition is product differentiation. Product differentiation means the product have either or imagined characteristics that identify the product as unique with their own brand of the product. For example, personal computers have different character such as speed, memory, hard disk, modem size and weight. Personal computers are differentiated sold; they can sell at slightly different prices in market (Nordhaus and Samuelson, 2010). A monopolistic competition is a free entry market. Firms can enter or exit the market without restriction until the economics profit were driven to zero on the market (Mankiw,
Topic A (oligopoly) - "The ' An oligopoly is defined as "a market structure in which only a few sellers offer similar or identical products" (Gans, King and Mankiw 1999, pp.-334). Since there are only a few sellers, the actions of any one firm in an oligopolistic market can have a large impact on the profits of all the other firms. Due to this, all the firms in an oligopolistic market are interdependent on one another. This relationship between the few sellers is what differentiates oligopolies from perfect competition and monopolies.
Super Markets are few and far between in the south. There are plenty of different variations within a very small region that when one becomes your favorite it’s usually because if convenience. However throughout the local community of Jacksonville and most of Florida, Publix Super Markets have made a very valuable impression on its current consumers. Founded by George W. Jenkins on the idea of what makes a company successful is how they takes care of their customers but also their employees. Publix being one of the top eight privately traded companies in this industry as labeled by Forbes America’s Largest Private Companies List leaves those asking what makes Publix so different.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
Publix strives to utilize the industry-wide differentiation strategy. Although Publix isn’t open 24/7 and does not have self-checkout (which also plays a role in its strategy), it focuses on providing the best customer service and facility presentation. The grocery store chain sets itself apart from the competition by keeping their stores as neat, organized and clean as possible; as well as Publix strives to provide the highest degree of customer service and accommodation as possible. Not only is the staff friendly and knowledgeable, they are encouraged to assist customers to the best of their abilities, they even help with carrying out the groceries to your car and assist in loading. As mentioned before,
There are many industries. Economist group them into four market models: 1) pure competition which involves a very large number of firms producing a standardized producer. New firms may enter very easily. 2) Pure monopoly is a market structure in which one firm is the sole seller a product or service like a local electric company. Entry of additional firms is blocked so that one firm is the industry. 3)Monopolistic competition is characterized by a relatively large number of sellers producing differentiated product. 4)Oligopoly involves only a few sellers; this “fewness” means that each firm is affected by the decisions of rival and must take these decisions into account in determining its own price and output. Pure competition assumes that firms and resources are mobile among different kinds of industries.
Seeing the success of Trader Joe’s, many competitors are trying to imitate their business model. Wal-Mart started their Neighborhood Markets on 1998 storing only grocery and pharmacy item. In 2011, Wal-Mart started Wal-Mart Express, an even smaller version of the original supermarket and rapidly growing. This year, Fresh City Market started operating in Purdue University, Indiana focusing on fresh food. The small size grocery segment is growing and there are already multiple players in the market to take a chunk of that.
Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive.
I- Is it difficult for competitors to successfully imitate or substitute? Do firms without the resource/capability face a cost disadvantage in obtaining or developing it? In the confectionary industry there are an...