Sample Coursework Paper on Physical Fitness

The basic method of dealing with the threat of substitutes in the industry has been to develop loyalty among the customers. This way the industry ensures that substitutes do not survive because its loyal customers do buy anything else except the recommended training devices. In this respect, the force of substitutes is low in the industry (McGuigan, Moyer and Frederick 381).

As with regard to new entrants, BOSU has established a strong alliance with professional trainers that recommend its products to their clients and it has registered its products with fitness quest. Consequently, even if the threat of new entrants is high because of the high profit margin, BOSU has established barriers to new entry in the industry (Hill and Jones 43).

In relation to the fact that BOSU has established strong mechanisms to counter its competitors, rivalry in the industry can be regarded to be high. In addition, the fact that other companies fight BOSU by reducing the prices of their products, then rivalry in the industry can be regarded to be high (Henry 80).

As for suppliers, these people seem to have no power of influencing the industry because BOSU has been able to establish some barriers to hinder new entrants from entering the industry. For this reason, suppliers do not have influence on the commodities they supply. Accordingly, the force of suppliers is low in terms of influencing the industry (Hill and Jones 43).

Last, in relation to the fact that BOSU has a well-established relationship with professional trainers that influence buyers’ decisions, then buyers have low force in the industry. In fact, as seen from the case study, buyers have no choice other than to purchase BOSU’s products as recommended to them by their professional trainers; thus, the force of buyers is low (McGuigan, Moyer and Frederick 381).

 

Work cited

Henry, Anthony. Understanding Strategic Management. Oxford: Oxford University Press, 2011. Print.

Hill, Charles, and Jones Gareth. Strategic Management Theory: An Integrated Approach. Boston, MA: Houghton Mifflin, 2010. Print.

McGuigan, James, Moyer, R., and Frederick Harris. Managerial Economics: Applications, Strategy, and Tactics. Mason