November 30, 2011
Business cycle:
In what stage of life cycle is the industry and What are the implications of this for the intensity of competitions?
Walt Disney movie industry in completely saturated in the market since long time ago and growth is very low and sometimes there is no growth in this industry only the industry is trying to maintain the same profit as last years. In America movie industry is oligopoly. There are few big movie industries. Walt Disney have the implications of intense competition for now and in the future. To maintain the same industry for now and in the future by having the price leadership and brand loyalty it is trying to have more than 50% market share in this industry.
• The price of movie is moderate in this industry and Walt Disney has loyal customers from long time ago, because of the quality and cartons movies and it has potential competence in the market. So we can say that the threat of entry is so low for this industry.
• Walt Disney is completely independent because of their famous brands, well-know name during a century and stability in the market. Better than the competitors it is trying to have lower price and there is not much war price in this market.
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