Infolinks1

Thursday 31 May 2012

Porter's Five Forces Model Example


Threat of New Entrants / Entry Barriers

Economies of Scale
The trend continued towards dedicated manufacturing facilities combining product line production in fewer large plants to gain economies of scale. All the major home appliances manufacturers were heavily engaged in renovating and building production facilities to gain economies of scale, improve quality, and reduce labor and material costs. So it would be a high barrier for the new entrant.

PEST Analysis of Beverage Industry

Political/Legal Factors

Food and Drug Administration (FDA) Regulation

All the food products manufacturers and producers are under the control of FDA. For instance, the food and drug administration certifies and tests new ingredients such as high concentration sweeteners prior to they are permitted to be used in beverages and soft drink production.

What is inflation and its causes


Inflation is a process in which there is continuous increase in the general price level and the money is continuously losing its value. In the words of Gardner Ackley, “Inflation may be defined as a persistent and appreciable rise in general level or average of prices”. It may here be noted that rising general level of prices does not mean that prices of all goods are necessarily rising. Even during inflation, the prices of some goods may remain relatively constant and a few others actually falling.