Rivarly among competing firms
Rivalry inside our industry is not really high, due to there are not many companies that offer that kind of product, we are a company that look for offer a product in large volume for our customers, also give them a high quality and a new experience at the moment to buy our products.
On the street there are many people who sells handicrafts but they do not have a high specialization in the industry, so our strongest competitors are them who provides handicrafts in a serious company like “Artesanias de Colombia”.
Potential entry of new competitors
As has been observed in macroeconomic analysis, the government is supporting the handicrafts production, and promoting employment, which has led to more competition, not only in product quality but also in offering lower prices. Being a new organizations in the industry, we do not have a high volume production or a large capital injection, so our costs tend to be higher, unlike Colombia Handicrafts, our bigger competition, that has been leading into the market for a long time and has with greater customer loyalty. Therefore, our responsibility is to monitor trends and ensure that the market impact of new companies to be lower, thus maintaining a competitive advantage in the long term.
Potential development of substitute products
The main substitute products we found are those handles and accessories that are not handmade and probably, they have a lower price, better marketing and increased use of technology which would generate a higher production.
In order to compete with these threats and achieve our vision (which is to be recognized by our excellent handicrafts in Colombia), we have to create strategies that can help us to be more competitive with alternative services
Bargaining power of suppliers
The power of suppliers in our industry is really big; due to there are many companies that could provide us the raw materials to work in our products.
In our firm ArtisManus, we work on handmade handicrafts, thats why is important to chose the best supplier among the options that we could have to create a great product with the best quality possible.
For example, an important product necessary to make our handicrafts, is thread, because many of our products are made with thread. We could find many suppliers for this material that have a favorable location for us like: Zafiro or hilos Bufalo.
Bargaining power of consumers
Bargaining of customers could be the most important factor for us inside the industry because we have to work hard the get the loyalty of our customers. This industry is an unpopular bussines in Colombia, because people usually do not go to buy that kind of product frecuently, and that is where we have to work on. But this is a really hard work so we need a good strategy in advertising to give to know our product in the market.
Also we need to have a differentiation of our competition because it could be a great competitive advantage to get the loyalty and the attention of new customers.