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Essay text:
They should keep a watch out for what strategies competitors may try.
Potential Entrants • Economies of sales is difficult to achieve because it’s difficult to spread out the fixed costs over a large volume and hence the business is in the hands of smaller competing firms.
• URS enjoys cost advantages from being in the business for 13 years such as favorable locations, raw materials and the brothers’ knowledge and experience.
• URS’s biggest advantage is their product differentiation & brand reputation.
• The capital requirements and switching costs for this business are also high, good for URS!
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