ATIS, Ayana Dawn S.

180039 / BUSTRA - C

December 19, 2020

CASE 1

1. D. A Threat
The displacement of wide-body vehicle by midget vehicle in the late
1970’s is considered a threat. Because the market trend changed from
dominantly using wide-body vehicle to midget sized ones. Also, Flores
Motors could be considered as a competitor.

2. A. A Strength
Palmera’s large cash reserves relative to the smaller vehicle
producers would be considered as a strength. Because they have large
cash reserves, it would be easy for them to buy the necessities needed for
establishing their ground in the small vehicles market.

3. C. An Opportunity
Palmera’s large bureaucratic organizational structure and complex
decision -making procedures relative to the entrepreneurial small firms in
small vehicles would be considered as an opportunity. These can be
considered as openings or chances for them to enter the market.
Compared to other firms, they already have all the requirements needed
and so it would be a waste if they would let this opportunity lose.

4. D. A Threat
In Flores’ perspective, Palmera’s entry in the scene of small vehicle
industry is a threat. Since Palmera’s came from the wide-body vehicle
industry, they have the resources to easily penetrate in the small vehicle
industry, as such, it would be hard for Flores to compete with them.