Essay About Substitute Products And Higher Price

Industry Analysis – Binh Duong Market
Industry analysisThreat of substitute products: Average In addition to natural flowers that are more expensive and having shorter usage time; the artificial floral products are potential to the Binh Duong market. This product has similar color to the natural flowers as well as a long lasting age. Customer also takes less time to take care of them compared to tradition flowers. In fact, artificial flowers are the new entrants of natural ones. However, the owner of coffee shops can buy other materials except our dried flowers and decorate their shops by themselves. Bargaining power of customers: Average Given the fact that this type of products is new to Bind Duong people, customers are likely to pay higher price to purchase this attractive and enduring product as well as our service. However, this type of products is quite popular in several proximate areas in Ho Chi Minh City. Hence, customers are able to compare the prices and bargain for a cheaper price.Bargaining power of suppliers: HighSince the company is a small enterprise that is in the early stage to enter Binh Duong market. Due to the low sale forecast, the products orders quantities is fairly small; hence, the suppliers might sell their products with higher cost. On the other hand, the number of suppliers is limited to several flower importers in Dalat City. The flowers are imported from Thailand, China or Japan. The importers have great power to decide their selling price; since the company might have less information of the original price of the flowers.