Five Forces of Competition Model Case Study Example | Topics and Well Written Essays - 250 words

Five Forces of Competition Model - Case Study Example The second force considers the threat created by new market entrants. The railroad business requires huge capital in starting a business operation. Moreover, potential new players lack access to land that is essential for the development of rail networks. The advancement of other transportation systems also hinder the widespread investment in this industry. For current players, the market remains stable as the rate of receiving new entrants is low. The bargaining powers of buyers stands as the third force (Hill & Jones, 46). In the railroad industry, buyers possess little bargaining power. The charges incurred in transportation are a dictate of legal laws regulating prices. Therefore, buyers lack power in price control. Moreover, the importance of goods transported through rail such as agricultural products limits the bargaining power of the buyers. The fourth force suggested by Porter considers the power of suppliers. In the case of railroad transport, suppliers hold a significant power. Union Pacific Corporation notes that the companies in the trade over-rely on specific suppliers for locomotive parts. Consequently, the withdrawal of one of the suppliers serves as a major challenge for these players. Suppliers in this industry control major processes of operation. The fifth force evaluates the threat of substitutes. The transportation industry offers substitutes in the shipping and air freight industries. Shipping costs sign ificantly cheaper while air transport remains faster. However, railroads remain significant due to their large operations on the land. Their major substitutes primarily operate in the air and water. Based on this analysis, the railroad industry stands out as unattractive. Challenges of competition create substantial problems. Moreover, the high cost of operation and the power of suppliers makes the industry unstable and unsustainable by new

The End of Euro Disneys as a White-knuckle Ride Essay

The End of Euro Disneys as a White-knuckle Ride - Essay Example It is not expected for growth in the European sector to be experienced until 2010 or 2011, which will require Disneyland Europe to find innovative methods to draw higher crowd volumes and ensure profit success. Additionally, rising commodity prices which will be felt in 2009 will seriously erode the potential for profitability in this year, with the business forced to cut costs where necessary and appropriate. One publicity expert identifies that theme park industries are highly competitive and strategic success involves the volume of guests which pass through the entrance turnstile every day (Kohl, 2000: 48). Further, the author identifies that attendance is so widely important that many executive leaders have hourly tourist counts pumped into their mobile devices for the sake of tracking customer numbers (Kohl). This is especially true at Disneyland Europe which relies on customer volumes to generate annual profit. Getting higher sales volumes, however, in the midst of the current credit crunch requires understanding competitive behaviors whilst redesigning Disneyland Europe with a new, modernized logo to attract the contemporary consumer. Readjustments to marketing will be the proverbial saving grace for Disneyland Europe in the next five years. In 2009, Disneyland Europe must make a stronger effort to understand its customers. Since over 40 percent of all customers are French, repositioning the EuroDisney brand to focus on French lifestyle can ensure a higher revenue stream during the current economic crisis. This will be increasingly difficult beyond 2008 and will require research into existing consumer behaviors in French markets. Snyder (2002) offers that the French tend to link Disneyland Europe with American culture, giving them a negative perception of â€Å"cultural imperialism† in which the theme park is  attempting to force American lifestyle into a proud, French culture. Negative cultural perceptions must be eliminated whenever possible in the new marketing model.