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New Entrants: LOW

This document analyzes the competitive forces in the express delivery industry. It finds that new entrants face high capital requirements and low economies of scale due to the need for trucks, airplanes, and a global network. Industry rivals are highly competitive global competitors like UPS, TNT, and DHL, with aggressive competition due to high fixed costs and exit barriers. Buyer power is high with intense industry competition, low switching costs, and bargaining power for corporate customers. The threat of substitutes is low as few alternatives exist for delivering physical goods compared to documents.

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Fariha Khan
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24 views1 page

New Entrants: LOW

This document analyzes the competitive forces in the express delivery industry. It finds that new entrants face high capital requirements and low economies of scale due to the need for trucks, airplanes, and a global network. Industry rivals are highly competitive global competitors like UPS, TNT, and DHL, with aggressive competition due to high fixed costs and exit barriers. Buyer power is high with intense industry competition, low switching costs, and bargaining power for corporate customers. The threat of substitutes is low as few alternatives exist for delivering physical goods compared to documents.

Uploaded by

Fariha Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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New Entrants: LOW Economies of Scale (truck, airplane, global network) High capital requirement

Power of Suppliers: Depend on type of purchases HIGH : Aircraft LOW : IT products Truck Maintenances and repairs

Industry Rivals: HIGH Global competitors UPS, TNT, DHL (with equally strong resources) High fixed cost and high exit barrier lead to aggressive competition

Power of Buyers: HIGH -Intense competition in express delivery industry -Low switching cost -More bargaining power for corporate customers (e.g. Dell Computers, Cisco Systems)

Threat of Substitutes: LOW Minimal substitute products available for physical goods. Only some documents can be sent by Internet, Email and Fax

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