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Do Significant Entry Barriers Exist?

Essay by   •  March 11, 2016  •  Case Study  •  616 Words (3 Pages)  •  1,056 Views

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6. Do significant Entry Barriers Exist ?

       a. What are they ?

Yes there are entry barriers that exist since there are other big companies that are involved in this industry. The barriers to enter for this product are moderate, with the level of initial capital investment required being the most significant barrier. Prospective operator that unable to secure sufficient capital for these investments will find it hard to enter this kind of industry.

7. Are there any close substitutes for the industry products or services ?

        Yes, there are close substitutes for the industry service like Eureka Forbes, Ion Exchange, Singer , The Delta: a copy of Aqua guard , Alfa Water Purifiers , Symphony’s Spectrum , The Sam Group : “Water Doctor” purifier and Batliboi.

  1. Do they provide pressure on price change in industry ?

The industry needs huge investment to develop operational efficiency, appropriate customer services, flexible supply, and deployment of innovative smart technologies. And Yes They provide pressure on price change.

8. What are the basic strategies of the competitors ?

        The basic strategy is merging to and acquiring companies which are related. This strategy aim in expanding the market and increasing market share. Identify the best way to enter market through branding and positioning.

        a . How successful are they ?

Many Indians felt the need for improved water quality. Its stage is in early growth stages million households of middle- and upper- middle-class households in the United States and the European Union. 4 million households who had similar values and

Lifestyles. 50% of our target market used boiling to make clean water and 40% of our target market used a mechanical device to improve their water quality.

9. To what extent is the industry global ?

This growing population is has created for efficiency in water market. The water market includes water utilities, waste water management, and sanitation management through water, among others. The water industry is estimated to grow by 4-5% in yearly basis and water utilities account near about 50% of this industry.

  1. Are they any apparent advantages to being involved in more than one country ?

Yes, by having  water utility industry comprise of the companies offering safe and suitable distribution of water and services such as wastewater treatment. Mostly the companies providing this services are local government body. However the recent trends show the involvement of private companies in water market. The water utilities all over the world function in different arrangement such as integrated water system and utilities separated by functions, among others. And to help gain market share.

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