Touch Wood Company Case Analysis

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1. Threat Of New Entrants: Most profitable market’s revenue is great that attract new firms. It lead reduction in profit because of new entrance in market. For touch wood ltd. It’s a threat for company because in New Zealand already have existing furniture industry since so many years. If new entries are come in market it reduce profit of touch wood company. It will adverse effect for company such as, shifting customers, product differentiation, price of product, etc. 2. Threat Of Substitute Product Or Service: The substitute product or service also threat for touch wood ltd. Because the existing company can switch customers by alternative products. Other Emergency substitute product is threats for company because if some customer have emergency for goods, in this situation they shift other buyers. 3. Bargaining Power Of Customer: Bargaining power of customers is the aptitude of customer to place firm in pressure. It affect to customer by consideration to piece variation by firms. Company can taking measures to decrease buyer powers by implementing a loyalty programs, maintain good relationship with customer’s etc. company also provide uniqueness in furniture so it will help company to manage customer bargaining power. 4. Bargaining Power Of Suppliers: Suppliers are provide raw materials,…show more content…
Such as, company is promote specific locally grown or exotic imported woods use to prepare furniture. Unless selling furniture at low prices, Company stand out from cheap furniture manufacturers so customers understand the quality and consistency in workmanship they get by buying our furniture. Company manufacture wood office furniture, mention the high quality that makes the customer’s office look professional, and point out any ergonomic design. Company include focusing on use of environmentally sustainable wood, providing speedy delivery of the furniture and offering extraordinary

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