Differentiation of Inputs Refers to valued, unique and tangible product differences that exist only in your suppliers products. A supplier whose product or service is unique or has special attributes that you desire restricts your ability to shop around. Refers to any cost incurred by you to switch to another or a new supplier Any cost associated with changing supplier reduces the frequency that businesses will change suppliers.
In part, this is due to new technologies that have been developed to advance exploration into new areas with harsher weather conditions and greater water depths. However, there are many competitive forces affecting this industry, brought about by a mix of the market and environmental concerns.
In addition, consumers, retailers and suppliers for oil and gas products influence the distribution and market share for the industry.
The 'Go Green' Campaign From environmental organizations to federal and state energy policies, there has been a sustained campaign for zero-emission products.
Today there are several substitutes for both oil and gas when it comes to domestic use and transportation. People have options for electric cookers in the home, electric cars and electric trains.
As the market gradually adopts these green energy use practices, offshore oil and gas exploration faces the threat of limited market and investment dollars in the future.
Disaster Response and Safety Management One of the key issues facing the offshore oil and gas industries is complacency on the part of operators. This can lead to lapses in concentration and taking shortcuts to save time when performing routine work. Failure to follow laid down procedures can easily compromise safety.
A minor accident can blossom into a catastrophe such as fire, oil spills and fatalities, exceeding the capacity of the company's response strategy.
It can be a challenge getting help in case an accident occurs due to location. Enacting robust safety management programs that are constantly reviewed and updated can be expensive but is necessary for expedited disaster response.
Threat of New Entrants The offshore oil and gas business is very lucrative, especially for the established players in the industry. However, despite the huge capital required, investors go the extra mile to get into this business, with new entrants forming a large number in many markets.
These new entrants act as a very crucial competitive force as they come in with new ideas and technology, threatening to dominate the offshore markets.
The older companies may find it expensive to upgrade their systems or replace them altogether to conform with changing technology, giving the new entrants an edge.
Security Threats Offshore oil and gas installations are susceptible to attack from various quarters. With the advent of digitization and information systems management for data generated by the plant, there is potential risk for a cyberattack by hackers. Internal sabotage can also be effected by current or former employees who may be dissatisfied in some way and want to get back at the company.
Such sabotage may take the form of damage to equipment, disruption of processes or deliberate destruction of data. Other sources of threats will depend on the location of the installation and include terrorism, piracy or organized crime. References 2 Journal of Energy Security: Protecting Offshore Oil and Gas Installations: Security Threats and Countervailing Measures About the Author Dr Jack Gordon, the Chief Technology Officer at Strontium Logistics, is a year veteran of the engineering and marketing business who favors stiff drinks, good debates and developing innovative digital marketing strategies to help companies grow.Threat of New Entrants The cell phone industry is highly concentrated.
Following the recent Sprint/Nextel merger, only four firms actually control 80% of the current market. Low threat of new entrants due to the already competitive nature of the industry, high investment levels required for start up, high risk of no return on investment if a new drug cannot be created and the specialised knowledge required to be able to produce these new drugs.
Digital Cameras Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast - The post focus feature was introduced to the industry by Lytro through a light-field camera model, which was followed by Panasonic but with a slightly different feature called refocus.
and the threat of new entrants and regardbouddhiste.comon: State Tower, 90 State Street, Suite , Albany, This research report analyzes the digital camera industry, which does not include digital cameras in mobile phones and tablets.
Growing popularity of social networking and the trend of sharing images over various platforms have led to the growth of the digital camera industry. Your analysis of the threat of new entrants seeks to identify the “barriers to entry” or the things about your industry that will make it harder for a new entrant to shift into your industry.
To analyses the threat of new entrants to your industry, you will need to consider the following factors. Entrants with drivetrain innovation can’t build a business model moat around the idea without a production base.
China is the largest producing (and consuming) nation. The global center of production shifted over the years and tends to follow consumption.