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POTENTIALENTRYOFNEWCOMPETITORS Lorealscompetitorsarecovergirls,avon,revlon,andsoonBesides,localcompetitorssuchassafi,sendayutinggi,andsoon.Thethreats:Lorealsproductsareluxuriesthatcouldbehurtbyaneconomicdownturn. howeverTheyareabletobeglobalandtoactlocal(marketleader)SuitResearch&DevelopmenttodifferenttargetgroupsHighqualityEffectivedistributionsystem Substituteproductsrefertoproductsinotherindustries.Athreatofsubstitutesexistswhenaproductsdemandisaffectedbythepricechangeofasubstituteproduct.Aproductpriceelasticityisaffectedbysubstituteproducts. POTENTIALDEVELOPMENTOFSUBSTITUTEPRODUCTSThenumberofchemicalsinshampooandotherbathandbodyproductsisfrightening.Yourskinisthelargestorganonyourbody.Whatevergetsputonyourskingetsabsorbedintoyourbody,intoyourbloodstreamandintoyourorgans,ashasbeenprovenbymanystudies.Essentially,whateveristoxictoputinyourmouthistoxiconyourskinaswell.

E xample: BARGAININGPOWEROFSUPPLIERS Bargaining strengthhighwhen:?Manybuyerandfewdominantsupplier?Undifferentiated,highvaluedproduct?Switchingcost?SubstituteproductareunavailableinthemarketplaceThepowerfulofsuppliertoanindustry,thelessprofitableth industry endure to be Bargacing power of consumers BargainingLeverageBuyerVolumeBuyerInformationBrandIdentityPriceSensitivityThreatofBackwardIntegrationBuyerConcentrationvs.IndustrySubstituteavailability BARGAININGPOWEROFCONSUMERSBuyersarePOWERFULif:BuyerareWEAKif:BuyersareconcentratedfewbuyerswithsignificantmarketshareProducercantakeoverowndistribution/retailingProductisstandardizedUniqueproductandbuyercannoteasilyswitchtootherproductBuyerpossesacrediblebackwardintegr ationthreattobuyproducingfirmorrivalManybuye! rshasnoinfluenceonproductorprice A theory of strategic heed that focuses on relating a firm to the competitive environment deep down which it plights. (The New Penguin railway line Dictionary, 2003) Competitive Rivalry If you parry the competitive environment in which you operate you could lose your...If you indirect request to get a full essay, effect it on our website: OrderCustomPaper.com

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