abhishreshthaa
Abhijeet S
ACN, Inc. is a Multi-level marketing (MLM) company that provides telecommunications and other services and also provides independent representatives an opportunity to form a home-based business. Based in Concord, North Carolina, USA, ACN began operations in the U.S in 1993 as American Communications Network. It extended operations to Europe in 1999 and to Asia-Pacific in 2004, and now operates in 21 countries, on 3 continents.[5] As a reflection of its international operations, it changed its name to just the initial letters ACN.[citation needed] The company is a member of the Direct Selling Associations in North America [6][7] and Europe.[8] In the United States, ACN is an accredited member of the Better Business Bureau, where it currently has an A rating.[9] In 2010, ACN was placed #21 on Direct Selling News' Global 100 list of the top 100 direct selling companies worldwide.
POLITICAL
The threats of new entry pertain on how easy or difficult for new entrant to start competing (12Manage n.d.). The primary barriers of new entry are the high capital and investments that are needed in order to enter the industry. This is because it mainly focuses on the different technologies that are needed in order to come up with the quality and services that are being offered by the long time players in the industry.
ECONOMICAL
Aside from that, it is also important to consider the availability of the distribution channel which is very important in connecting with the customers. Furthermore, because there is long time player in the industry, brand loyalty of the customers is considered as inevitable. However, due to AFTA, the government offers friendly entrance policies for the possible new entrants.
SOCIAL
The threats of substitution pertain on the ability of the customers to go for substitute products that might be cheaper and accessible. In terms of the passenger car industry, the growing demands for bikes and motorcycles. More and more people are switching from using the passenger cars into using bikes and motorbikes due to two reasons, first is that it helps them to save money because of gasoline, at the same time, the consumer are becoming more aware of their environmental benefits. Thus, the quality of the substitute’s products, the willingness of the customers and the low costs of switching enables the threats of substitution high.
TECHNOLOGICAL
The bargaining power of the customers in this industry is somewhat high due to the homogenous or almost the same products, which divide the number of sales from huge number of competitors. But it can be maintained due to the huge number of buyers, primarily in developed countries, aside from the fact that the buyers are fragmented. Above all, the importance of quality of the products and services are important factors which affect the power of the buyer.
POLITICAL
The threats of new entry pertain on how easy or difficult for new entrant to start competing (12Manage n.d.). The primary barriers of new entry are the high capital and investments that are needed in order to enter the industry. This is because it mainly focuses on the different technologies that are needed in order to come up with the quality and services that are being offered by the long time players in the industry.
ECONOMICAL
Aside from that, it is also important to consider the availability of the distribution channel which is very important in connecting with the customers. Furthermore, because there is long time player in the industry, brand loyalty of the customers is considered as inevitable. However, due to AFTA, the government offers friendly entrance policies for the possible new entrants.
SOCIAL
The threats of substitution pertain on the ability of the customers to go for substitute products that might be cheaper and accessible. In terms of the passenger car industry, the growing demands for bikes and motorcycles. More and more people are switching from using the passenger cars into using bikes and motorbikes due to two reasons, first is that it helps them to save money because of gasoline, at the same time, the consumer are becoming more aware of their environmental benefits. Thus, the quality of the substitute’s products, the willingness of the customers and the low costs of switching enables the threats of substitution high.
TECHNOLOGICAL
The bargaining power of the customers in this industry is somewhat high due to the homogenous or almost the same products, which divide the number of sales from huge number of competitors. But it can be maintained due to the huge number of buyers, primarily in developed countries, aside from the fact that the buyers are fragmented. Above all, the importance of quality of the products and services are important factors which affect the power of the buyer.