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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 run to be Bargacing power of consumers BargainingLeverageBuyerVolumeBuyerInformationBrandIdentityPriceSensitivityThreatofBackwardIntegrationBuyerConcentrationvs.IndustrySubstituteavailability BARGAININGPOWEROFCONSUMERSBuyersarePOWERFULif:BuyerareWEAKif:BuyersareconcentratedfewbuyerswithsignificantmarketshareProducercantakeoverowndistribution/retailingProductisstandardizedUniqueproductandbuyercannoteasilyswitchtootherproductBuyerpossesacrediblebackwardintegrationthreattobuyproducingfirmorrivalManybuyershasnoinfluenceonproductorprice A system of strategic management that focuses on relating a firm to the matched milieu within which it plights. (The new-fangled Penguin railway line Dictionary, 2003) agonistical Rivalry If you forget the competitive environment in which you operate you could ache your...If you want to get a full essay, effect it on our website: Orderessay

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