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ID number:457331
 
Author:
Evaluation:
Published: 07.12.2010.
Language: English
Level: College/University
Literature: 11 units
References: Used
Table of contents
Nr. Chapter  Page.
  Introduction    4
1.1.  Motivation for the Choice of the Problem Statement    5
1.2.  Problem Statement    5
2.  Methodology    6
2.1.  Methods    6
2.2.  Delimitation    7
2.3.  Financial Assumptions    7
3.  Threat of New Entrants    8
3.1.  Economies of Scale    10
3.2.  Product Differentiation    11
3.3.  Capital Requirements    12
3.4.  Switching Costs    12
3.5.  Access to Distribution Channels    13
3.6.  Cost Disadvantages Independent of Scale    13
3.7.  Government Policy    15
3.8.  Expected Retaliation    15
3.9.  Experience and Scale as Entry Barriers    16
4.  Bargaining power of suppliers    16
4.1.  Market dominated by a few large suppliers    16
4.2.  No substitutes for the particular inputs    17
4.3.  Supplier’s customers are fragmented    17
4.4.  Switching costs between supplier are low in China    17
4.5.  Forward integration of the supplier    17
4.5.1.  The buying industry is more profitable    18
4.5.2.  Economies of scale for the supplier    18
4.5.3.  The buying industry hinders the supplier’s development    18
4.5.4.  The buying industry has low entry barriers    18
4.6.  Government as a force in industry competition    18
5.  Bargaining power of buyers    18
6.  Threat of substitute products    19
6.1.  Competitive Rivalry between Existing Players    20
7.  SWOT Analysis    20
7.1.  Strengths    21
7.2.  Weaknesses    21
7.3.  Opportunities    22
7.4.  Threats    22
8.  Literature    24
Extract

According to Össur’s Annual report from 2009 even though this company is one of the most successful companies in the manufacturing of non-invasive orthopedics, it faces the risks of losing their position as Market leaders due to inappropriate assumptions of the market trends.
Following Össur’s annual report 2009 their future vision is to maintain leadership role non-invasive orthopedics market. Consequently the characteristics of the current and future market trends and globalization suggests that the only way of achieving such goal is to follow a well-structured and promising growth strategy.
Össur’s strategy indicates increasing profitability as one of its key points and this is to be done through efficiency and economies of scale. Össur will always strive to seek new opportunities for further optimization.1
The Asian market area presents a variety of characteristics that can offer promising and potentially profitable opportunities that matches Össur’s interests concerning their vision. There are several factors that are seen as strong motive to consider Asia to be a great market opportunity of growth.
The company is already located in China but not at a very significant scale compared to its activities in Europe and North America. They have an Asian head office, sales, marketing, distribution, R&D and outsourcing activities, however Össur Asia accounts only for 4% of the company’s total sales and 26% of the manufacturing is outsourced to Asia. This means that the already know the area and their main competitors making them able to adapt fast to local market trends when expanding the business establishing production. …

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