If there are many competing suppliers in a sector, should a prospective entrant prefer collaboration to competition? What factors should influence its decision?

What will be an ideal response?


Are there many suppliers because the sector is immature and ripe for a shakeout? Or does it signify a
lack of scope to create distinctive advantages? A prospective entrant should be clear how its
objectives would be well-served by entering the sector. Is it to grow via diversification (exploiting a
loyal clientele); to acquire synergistic, complementary new products, services, skills or resources; or
are there other reasons? The answers should help the decision regarding direct competition,
acquisition or partnership. A strong, well-resourced enterprise can enter confident in its ability to
disrupt sector equilibrium by competing aggressively, with longer-term share gain in mind.
Acquisition may be attractive if the existence of multiple competitors prevents an acquisition
premium being demanded (chapter 11). Again, partnership may be attractive when the entrant has
much to offer a prospective partner and vice versa, because their resources and skills are
complementary.

Business

You might also like to view...

At which stage of meiosis is each chromosome composed of a single chromatid?

A. metaphase II B. prophase II C. telophase I D. telophase II E. prophase I

Business

Describe the types of details needed and the tone to use in a persuasive claim letter

Business

A manager acting in the role of a leader will

A. choose the best resources to most effectively and efficiently produce the organization's product or service. B. verify the quality of resources that pass through the organization. C. determine how organizational resources will be released in the environment. D. encourage workers to increase productivity. E. identify the various suppliers the organization will utilize to acquire resources.

Business

Alps Ski Co is looking for new markets for both its brick and mortar retail stores and its catalog division. Alps Ski Co would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for market segmentation of its catalog division.

A. behavioristic; geographic B. geographic; demographic C. demographic; psychographic D. environmental; demographic E. geographic; behavioristic

Business