Legislation and government action 4 Threat of Substitutes A threat from substitutes exists if there is an alternative product with lower prices of better performance parameters for the same purpose.
There are complementary, i. Lower transaction and search costs, shorter waiting times and lower costs. Xara Inc.
Neither organizational nor environmental complexity has been included in current Strategic Foresight literature.
The case company has close customer relations when creating a product for them, being able to make a prototype within two days and then discussing possible changes with the customer to ensure all wishes are met.
Supermarkets at this stage have attempted to exploit a sharing function in order to achieve economies of scale in relation to clothing retailing with other businesses operations in the company. Firms can The power of suppliers becomes visible when there are few suppliers in the market being able to dictate prices Porter M.
Porter, et al. Nevertheless, this shows that specialized, small companies have a good chance to establish themselves in this niche market.They classified quantitative methods as standardized, particular, and presence related aiming a prediction of the future. Porters approach on competitiveness among market participants. This is mainly due to the fact that the customers do not use their products as initially intended, but give them a new function. Low switching costs, especially in the case of similar or comparable products, lead to a high bargaining power of the buyers. Complexity of markets and the unsecure consequences of globalization encourage the desire for long-term- thinking. Such measures also have entailed the development of different forms of loyalty rewards such as loyalty cards which are widely used by clothing retailers, Mintel International Group It is fair to say that branding strategy plays a critical role in maintaining long term customer bases which itself reflects the increasing power of customers. It is difficult for small companies to survive whereas profit is consolidated in known brands and superstores Messe Frankfurt Group, Porter , p. Such a feature has been seen in recent years in the UK clothing retail industry with many of the major retailers experiencing significant reductions in profits, British Council of Shopping , Mintel, b. Currently customers do not perceive the quality The case company is offering in their products and therefore do not meet customer expectation on the predictable level according to Miller