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Most suppliers do not have any authority to affect the availability or the price of products. Just like most movie rental companies have a marketing strategy that stocks more movies that have been recently introduced compared to the old ones. Most of the companies are charging low monthly charges resulting to increased rivalry especially in the U. Blockbuster Inc. This is obvious because the company moves on with customer preferences. Due to growth in modern movie production, rivalry and marketing has become fierce as firms attempt to increase their market share. Market inputs such as the efficiency of supply chain, expertise of the suppliers and the financial capacity of the firm to convince suppliers to work harder. There is a barrier for new entrants in this industry are as a result of the research and development undertaken in the market. A statement posted on (myreviews. has effectively utilized this strategy to examine and monitor the companys performance with specific regard to the customers. Some supply chains are also China Air compressor Factory feeble and may not support a huge market base resulting inefficiency in customer service. The performance and quality provision is usually very important for the suppliers. They are also not faced with shortage of inputs or logistic capability.S where its major rival, NetFlix reduced its monthly charges by almost 5%. In some cases, suppliers may refuse to work leading to shortage and customer mistrust. Our company also accepts trade-ins of used DVDs, which are sold alongside the existing stock of previously rented movies in order to create a more robust selection of titles for trade The threat of substitute products usually increase among those customers may fall prey to the black market and pirated products. Also with many new entrants into the video rental market, there is a noticeable decrease in profits and it is expected that the profits will continue to reduce as long as marketing strategies and new business models continue to come up.

This porters force is where profitable markets and companies that have a competitive edge in terms of high revenue will out-compete the ones that are still financially weak. Over the years, there has been decline in the growth of the industry although new markets are up-and-coming with high growth levels,Typically the company puts more emphasis on market forces and that it does not brand new releases as favorites for Blockbuster. Price negotiations and discounts are as such not appropriate in this case because of logistical matters in preferences and customer information outreach.. Most buyers however buy as individual rather than group. However, leisure game products are relatively cheap because it does not require technical expertise which is the norm in athletic wear and quite expensive. Some rivals are also very aggressive and may extend their rivalry to non-price approaches such as marketing and innovations. Blockbusters market research has been able to outline the companys market balance and capabilities in terms of the customers opinion on the quality of the DVD rentals and viable competition from other companies.com) website explains that The large volume of new release copies is typically sold by this company after the initial renting rush. These and other different issues need to be addressed at length before deciding to adopt them as a way of improving productivity. Blockbuster has been able to contain most of their competitors but the problem lies in the price adjustments.

As in the case of prices, some suppliers give charge excessively high prices leading to poor customer and company relationships. The bargaining power of the customers may put the firm under pressure in terms of price changes and buyer volume in terms of switching costs in the rental market. Consumers do have power because of low switching costs.99. In this era of online marketing and improved technologies, it is very easy to switch alternatives easily.

The costs of products has become relatively low, substitutes have become readily available with slight features for segregation. This company spends a lot of money for marketing and promoting the products by competing firms through various channels in a bid to communicate to the target consumers who channel their money to purchasing the firms products. in the home entertainment sector is ripe just like in other sectors. The leadership of this company should be in apposition to promote employee participation, innovation and new product development. In the long run it will lead to the breakdown of individual relationships which affect their productivity in general at the company.