Threat of Substitute Products or Services For the Second Furniture Market

下面为大家整理一篇优秀的paper代写范文- Threat of Substitute Products or Services For the Second Furniture Market，供大家参考学习，这篇论文讨论了替代产品或服务对第二家具市场的威胁。替代产品或服务的威胁能够推动两个不同的企业相互竞争，因为他们所生产的产品是相互构成波特五力模型的一部分。因此，对二手家具市场最具威胁的替代品是新家具市场，新家具市场占有较大的家具市场份额，具有较高的品牌知名度。

WEEK

-Number of substitutes

Threat of Substitute Products or Services that is able to push two different enterprises compete with each other due to the products they produced are constitutes for each other forms one part of Michael Porter's Five Forces. The most threatening substitute for second-hand furniture market, therefore, is new furniture market which possesses a large share of furniture market and is of high brands awareness. For example, there are lots of famous brands in America such as BoConcept, Mitchell Gold, Bob Williams, Ikea and Ashley that are of numerous physical stores all over the world and have plentiful furniture to choose because of their novel styles.

MODERATE

-Performance of substitutes

For second-hand furniture market, there is less possibility of finding the original manufacturer to maintain the furniture that is suddenly broken on account of its purchasing vouchers have already lost and nowhere, by contrast, new furniture market is of great ability to do this. Moreover, new furniture is made of new materials, the quality of which is assured. While wormholes are easy to spring up on the materials of used furniture. But there is one weakness that new furniture give off an unpleasant smell should be focused by the competitors, for some buyers would rather purchase an old furniture than buy a new one concerning their residence comfort level.

STRONG

-Cost of changing

Nowadays, most of new furniture are made in an automatic workshop, which has reduced the labor costs greatly compared with the old furniture that need to be re-treated. In fact, a majority of old furniture are required to be re-treated before they are sold to others. That is to say, even though the old furniture were recycled in lower price, their owner still needs to pay labor costs of re-treatment. Therefore, the merchant who recycled these used furniture intends to sell them in a much higher price, which perhaps could be higher than a new one. As a result, customers are easy to choose the substitutes for the old furniture.

Reference

Dobbs, EM 2014, ‘Guidelines for applying Porter's five forces framework: a set of     industry analysis templates’, Competitiveness Review, vol. 24, no. 1, pp. 32-45.

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