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Essay / Five Forces Theory of Eco-Drivers - 910
Threat of New EntrantsBarriers to entrants deter new competitors from entering the market and create more competition for established businesses. Profitable markets attract new entrants, which erodes profitability, unless incumbents have strong and sustainable barriers to entry. There are several major barriers to entry, including economies of scale, capital requirements, product differentiation, switching costs, and government policy. When it comes to our eco-powered engines, the most crucial barrier to entering this industry is patent protection. In China, there are 3 forms of patent protection: invention patent, design patent and utility model patent. By using the invention patent, the EPE would impose 20 years of patent protection. The EPE would request that the right be granted for a specific period with a minimum of 20 years for protection of the invention. This would reduce or eliminate competition with potential and existing businesses that pose a threat to entrants. Patent protection includes methods used in manufacturing, manufacturing materials, etc. Another major barrier to entry is the capital required to start a new business like eco-powered motors, which includes the cost of building or purchasing plant and equipment, and establishing plant and equipment. equipment. inventories. Additionally, product differentiation would also be a problem for new businesses because our business would have already marketed our product and have a number of loyal customers. Any new business should spend a lot of money to get their name out there and convince the customer to start buying their own engine. Another major problem for new companies to be competitive is the distribution of their products. This is a new industry that allows the distribution of paper products to be profitable in the long term. RIVALRY BETWEEN EXISTING COMPETITORS The degree of rivalry or intensity of competition is the final strength of the EPE five forces theory. This point is crucial to assess the completion that exists among current companies in the sector. Although EPE manufactures a single type of diesel engine for automobiles, there are other manufacturers that compete on the basis of product type. Existing competitors include: Anhui Quanchai Co. ltd (manufacturer and distributor of diesel engines) and Hebei Energetic-Ox Motor Group (a company consisting of 12 factories. Their main products include: electric motors, oils and filters for cars. Well that there are competitors in Industry competitor, EPE offers product quality guarantees, price guarantees based on materials, components and protective processes, environmentally friendly..