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 natural selection to produce their own raw material (TBD, needs more real information) c.High switching cost for manufacturers (machines are precise(prenominal) wellly tuned, and it cost the manufacturer a lot of currency to change) d.Suppliers must apportion in high volumes, high intractable be (TBD is it a weakness or a specialization?) 2.High threat from substitutes a.Other intersection point can accomplish well (framework diapers) b.Need to make disposable diapers showy and halcyon to use so they will differentiated from cloth diapers c. trade-off between price to performance is increasing, (low price substitutes get int have the same performance) 3.Threat of new entrance inconsolable a. defect identity is real important (Pampers & Huggies) i.Millions are pl ayed out on advertising ii.Shelf space is hard to get b.Huge set-up costs = machines can cost hundreds of millions $ c.Economies of scale takes a long art object to reach the minimum level of returnion d.Access to distribution is sincerely important (because of economies of scale) e.Very hard to not roll pop division 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 very nut case to price (TBD young parent usually are very price sensitive?) d.Su bstitutes 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 operose 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 coupons, giving samples. f.Low R&D advancement in recent daysIf you want to get a liberal essay, order it on our website: OrderCustomPaper.com

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