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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 ply to be Bargacing power of consumers BargainingLeverageBuyerVolumeBuyerInformationBrandIdentityPriceSensitivityThreatofBackwardIntegrationBuyerConcentrationvs.IndustrySubstituteavailability BARGAININGPOWEROFCONSUMERSBuyersarePOWERFULif:BuyerareWEAKif:BuyersareconcentratedfewbuyerswithsignificantmarketshareProducercantakeoverowndistribution/retailingProductisstandardizedUniqueproductandbuyercannoteasilyswitchtootherproductBuyerpossesacrediblebackwardintegrationthreattobuyproducingfirmorrivalManybuyershasnoinfluenceonproductorprice A speculation of strategic management that focuses on relating a firm to the agonistical purlieu within which it plights. (The mod Penguin railway line Dictionary, 2003) combative Rivalry If you forget the competitive environment in which you operate you could lack your...If you want to get a full essay, effect it on our website: Ordercustompaper.com

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