Industry Analysis - Diapers

Disposable Diaper constancy (DDI) 1.Bargaining power of providers Medium a.In general, the biggest supplier of the DDI are the raw material manufacturers b.Companies today consecrate the plectrum to produce their own raw material (TBD, needs much real information) c.High switching cost for manufacturers (machines are alrightly tuned, and it cost the manufacturer a lot of currency to change) d.Suppliers must manage in high volumes, high intractable be (TBD is it a weakness or a specialization?) 2.High threat from substitutes a.Other crossroad can accomplish well ( fabric diapers) b.Need to make disposable diapers affordable and halcyon to use so they will differentiated from cloth diapers c. trade-off between price to performance is increasing, (low price substitutes hold proscribedt have the same performance) 3.Threat of new entrance gruesome a. defect identity is real important (Pampers & Huggies) i.Millions are pass on advertising ii.Shelf sp ace is hard to get b.Huge set-up costs = machines can cost hundreds of millions $ c.Economies of scale takes a long opus to reach the minimum level of fruition d.Access to distribution is sincerely yours important (because of economies of scale) e.Very hard to not roll pop constituent by region 4.Bargaining power High a.Customer pick out with their pockets b.Brand is extremely important and there is a fine differentiation between the well- known brands (pumpers and huggies) c.Customers are precise en to price (TBD young parent usually are rattling price sensitive?) d.Substitutes are available e.Buyers are very informed about products (already from hospitals), (TBD, is this counts for something?) 5.Competitive rivalry a.No exit barriers b.Industry is very arduous c.Large fixed costs d.Very little alteration of manufacturers e.Very low product differentiation everyone is offering the exchangeable products i.They need to differentiate by using cou pons, giving samples. f.Low R&D advancement! in recent daysIf you want to get a unspoiled essay, order it on our website: BestEssayCheap.com

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