Australian electronic tablet industry Essay Example | Topics and Well Written Essays - 2250 words

Australian electronic tablet industry - Essay Example Apart from assessing the demands and wants of consumer the report will analyze the porter’s five forces with respect to the electronic computer industry within the Australian market. The report will also highlight on the cultural differences between the two countries based on Hofstede’s cultural dimension model. The key finding of the report is the existence of huge demand for tablet pc in Australia and some forecasting agencies have predicted that the sales figure will be skyrocketing in the years to come. Table of Contents Table of Contents 3 Threat of new Entrants 5 Economies of Scale 5 Brand Loyalty 5 Capital Requirement 6 Analysis 6 Threat of substitutes products 6 Switching Cost 6 Buyer Loyalty 7 Analysis 7 Bargaining power of buyers 7 Number of customers in the market 8 Availability of Substitutes 8 Analysis 9 Bargaining Power of Suppliers 9 Degree of supplier concentration 9 Availability of substitute inputs 9 Analysis 10 Existing Rivalry 10 Industry growth rate 10 Demand for product 10 Analysis 11 Recommendations 11 Hofstede’s cultural dimension 13 Cultural dimensions of Australia and Germany 13 Difference between two cultures 14 Recommendation 14 Conclusion 14 Reference 16 Threat of new Entrants New entrants are described as the companies that are presently not competing within the given industry but has the potential to compete in the industry if chooses to do so. Economies of Scale Economies of scale are about the decrease of unit cost of production when the company starts to manufacture more. Some of the sources include a) cost reduction through mass production. b) Discount availed through bulk purchase. c) Spreading fixed cost of production over volume of production. d) Same advertisement cost of large volume of production.1 Therefore Supernova limited can go for large scale production in order to grasp the cost advantage but before taking the decision they can go for a pilot test or test marketing. Brand Loyalty Brand loyalty is exhibited by consumers when they are more inclined towards the products of the established players of the industry.2Companies can create brand loyalty by using strong advertisements, superior product quality and providing after sales service. In a recent study, it has been observed that Australians do not pays extra for the sake of brand names; rather they move towards cheaper brands which offer good value for the products. Therefore, Supernova limited has to retain the loyalty by maintaining a fixed level of price and also satisfying the customer needs. 1. Gareth Jones and Charles Hill, Strategic Management Theory: An Integrated Approach (US: Cengage Learning, 2009), 44. 2. William M. Pride and O.C. Ferrell, Marketing (US: Cengage Learning, 2011), 400. Capital Requirement Capital requirement is the amount needed for the cost of production and considering the fact that the firm is a new entrant in the market, the total cost will also include the whole set up of the company to st art its operation. The entire set up will include manufacturing in the factory, raw materials, labor charges and all other variable cost. Since the company does not have any restrictions in the financial segment they can undertake all the required operations. Analysis Since the company