Midterm Paper Essay Example | Topics and Well Written Essays - 500 words

Midterm Paper - Essay Example Modern computers and technologically improved mobile phones have become close substitutes to television. However, it is very difficult for new players to enter the industry due to the high entry cost. 1b. According to Edwards, from a resource based view of the firm framework, it can be observed that the company nowadays increasingly focuses on sales of television sets, which provide standard features such as 3D displays. As part of this strategy, the company has recently announced an extensive reorganization of the unit. The company â€Å"has eliminated 30,000 jobs, entered into joint manufacturing ventures with rivals, and shed assets.† (Edwards, 2011). In addition, the company sold a number of its production plants. 1c. Referring to the structural characteristics of modern television manufacturing industry, the Sony’s strategy may fail in the long run. As discussed, television sets are being largely replaced by the modern computer and mobile phones. At this juncture, it is a cumbersome task for the company to survive the market competition by focusing only on the products’ standard features. 2a. In the words of Tracy, online retail industry is a rapidly growing market sector and this immense growth can be attributed to the industry’s ability to reach millions of potential customers at cheap cost. Market forecasts show that online retail industry would become one of the world’s most profitable industries by 2015. Nowadays, marketers are increasingly focusing on online shopping with intent to serve the interests of customers at a fairly low cost; and this situation is significantly intensifying the competition. Buyer power is higher in the online retail industry because of the stiff market competition whereas suppliers have a weak bargaining power over their clients. However, threat of substitutes is relatively high in the online retail industry although there are a