Untitled Essay Research Paper Waterford Crystal a — страница 5

  • Просмотров 579
  • Скачиваний 5
  • Размер файла 20
    Кб

either coming on the scene or drastically affecting the new market share of Waterford due to the labor intensive craftsmanship needed for the high end crystal market. The Crystal market seems to be heading into the mature market phase that is indicated with slow growth. The demand for high end crystal is already fulfilled by the present companies of Waterford/Wedgwood (Ireland), Lalique (France), St. Louis (France), Baccarat (France) and Orrefors (Sweden). Bargaining power of Suppliers: Power of the suppliers is considerably low due to the relative abundance of the silica, red litharae, and potash, which are the basic ingredients to the sparkling multimillion dollar crystal industry. Bargaining Power of buyers: The bargaining power of the buyer is somewhat high when compared to

the necessities of a household. If the customer does not like what they are being shown, for whatever reason, they can simply leave the store without purchasing the crystal. The product that Waterford produces must be of value to the customer to make them purchase it over the competitors crystal. Threat of Substitutes: The threat of substitutes is moderate to low. When purchasing high-end crystal, the question is not one of price, but one of quality. In the US, if you want the best, then there is no substitute. You may select from one of the before mentioned high-end crystal producers, but they are competitors and not substitutes. Intensity of Rivalry: The intensity of rivalry is high, but less so in the United States, where nearly 70% of Waterford?s products are shipped. In the

United States, Waterford is a household name, so when people look for crystal, they look for Waterford quality. RECOMMENDATIONS n The Waterford division needs to coordinate their activities with the Wedgwood division to share knowledge on how to improve their profitability. A strong competitive advantage can be gained through the sharing of ideas across all of Waterford Wedgwood divisions. n They should possibly expand beyond its core business by using brand enhancing. n They should look at expanding into existing markets such as U.S. (which now represents 70% of sales), Britain, Japan, Australia and Northern Ireland as well as build sales in new markets such as Thailand, Taiwan and South Korea to keep globally competitive. n Being globally successful will allow Waterford

Wedgwood to cope more easily with localized fluctuations in demand and become less dependent on its U.S. market. n They should improve on operating efficiencies along with the ever increasing cost of their main core competency of skilled labor. n They should extend the growth rate of its new mid-priced Marquis line of stemware into all market areas. 10 12