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 picking to produce their own raw material (TBD, needs more than real information) c.High switching cost for manufacturers (machines are beauteously tuned, and it cost the manufacturer a lot of currency to change) d.Suppliers must grass in high volumes, high intractable cost (TBD is it a weakness or a specialization?) 2.High threat from substitutes a.Other convergence can accomplish well ( material diapers) b.Need to make disposable diapers seamy and halcyon to use so they will differentiated from cloth diapers c. trade-off between price to performance is increasing, (low price substitutes put one acrosst have the same performance) 3.Threat of new entrance drab a. defect identity is real important (Pampers & Huggies) i.Millions are washed- step up on advertising i i.Shelf space is hard to get b.Huge set-up costs = machines can cost hundreds of millions $ c.Economies of scale takes a long firearm to reach the minimum level of increaseion d.Access to distribution is in truth important (because of economies of scale) e.Very hard to not roll pop portion 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 really tender to price (TBD young parent usually are actually price sensitive?) d.Substitutes are a vailable 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 heavy 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 unspoilt essay, order it on our website: BestEssayCheap.com

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