Miller Company managers realize that Jim's Corporation may attempt to enter their market. What steps might they take to dissuade Jim's Corporation from entering? What factors are likely to determine whether they will succeed? What actions taken by Miller in the past might play an important role in influencing whether Jim's Corporation enters or not?

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Business

Angelina Frazier

15 August, 01:49

Miller Company managers realize that Jim's Corporation may attempt to enter their market. What steps might they take to dissuade Jim's Corporation from entering? What factors are likely to determine whether they will succeed? What actions taken by Miller in the past might play an important role in influencing whether Jim's Corporation enters or not?

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Frankie Cooley · Answer 1

1) What steps might they take to dissuade Jim's Corporation from entering?

Taking into consideration Porter's five forces model, the aspects of suppliers, substitute products, customers and new entrants are crucial when a company wants to enter a market. So, in order to dissuade Jim's Corporation from entering, Miller Company can improve their relationship with customers, to nurture a loyal customer base. They can do the same with suppliers. Eventually, they can create a more diverse product/service portfolio and make their products more price-competitive to decrease the threat of substitutes.

They cannot influence the threat of new entrants, as that is mostly related to economic policies of the government.

2) What factors are likely to determine whether they will succeed?

Although it is possible to influence the aspects named in the previous answer, it is often a tough task to accomplish. Also, it is emphasized that the threat of new entrants is an important factor which cannot be influenced.

Brand loyalty is essential to make substantial progress here, as customers who are loyal are not likely to switch to another brand/company due to habit, preference and frequent switching costs.

3) What actions taken by Miller in the past might play an important role in influencing whether Jim's Corporation enters or not?

Their R&D and general product development is a process that takes a long time to show results. Therefore, if the company invested in the development and improvement of their product/service before, the results are to show by increased customer satisfaction and loyalty, which is a threat for Jim's Corporation. Also, great relationships with suppliers are essential to secure a steady place in the market.