Do Industries Change Because of Newcomers and Outsiders?

Title
by
A Dissertation
Submitted to [Name of Department]
[University Name]
In Partial Fulfillment of the Requirements
for the Degree [Degree Classification]
[Month Year]

Abstract
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more than one page. Write the abstract last, when you’ve completed the rest of the
dissertation.
State your research problem and objectives:
· Briefly describe the problem or question your dissertation addresses.
· State your specific objectives.
· Use the present or simple past tense.
Describe your methods:
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Summarize your key results or arguments:
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Table of contents
Introduction
Literature review/theoretical framework.
Methodology
Potential Implications
Conclusion
Reference list

Do industries change because of the so-called ‘newcomers’,’ outsiders’, and
‘second raters’ who are creating new products or changing ones that segment
the market?
Market segmentation refers to the process of defining or dividing a homogenous
market into different small sections. The market segmentation process is illustrated as the
STP(segmenting, targeting and positioning). Newmarket entrants or penetrators have the
possibility of either having a positive market reception or hostile reception. The market
penetration strategy and the product being offered are key determinants of how successful a
business will be (Min, Kim, and Zhan, 2017). Product differentiation that targets particular
customers might be a threat for a big and already established business. The research aims to
determine if the industries are changing because of the newcomers, outsiders, and second-
raters who are creating new products or changing ones that segment the market. In order to
analyze I will be defining and identifying who the outsiders are. The thesis aims to gain an
understanding of market segmentation.
The Dissertation focuses on the drinks industries, including the Red Bull company
and the Coca-Cola Company. Red bull company is a company that manufactures energy
drinks. It is well-recognized since they are among the topmost suppliers of energy drinks in
the drinks market (Bergstrom, 2021). The red bull company faces a lot of competition from
the newcomers, outsiders, and the second-raters in the market. The competitors have
implemented new strategies based on the red bull company's weakness and have developed a
way to compete locally and globally.
The coca-cola company is a company that deals with the manufacture of soft drinks
like juice and soda. The Coca-Cola Company is well recognized in the markets since it had
conquered the markets in the past. The company has faced a lot of competition from

newcomers, outsiders, and the second-raters in the modern market (Ann Butler, 2020). The
competitors in the soft drinks market depend on the weakness of huge companies like Coca-
Cola hence making their way in the market both locally and internationally.
Newcomers attack intractable problems, take huge risks and force the rest of the
industries to look beyond the edge of what seems impossible. They seek outlandish goals,
aiming to transform the system whose dysfunctions help create major problems. In this way,
they uncover new ways to disrupt established industries while creating new paths for the
future. They establish new ventures to deliver goods and services which currently are not on
the existing market or previously undiscovered markets. Greg Dees of Duke University has
argued that ‘markets do not do a good job of valuing social improvements, public goods and
harms, and benefits for people who cannot afford to pay.
Businesses might not entirely change their means of operation, but if the entry or a
competitor company threatens the profitability of the existing company, existing firms might
consider changing their strategy (Luvusi, Murigi, and Muthoni, 2019). An important factor for
existing businesses to consider is the threat potential of a new entrant is the size. The size of
a company will determine the resource capacity to present a threat. The second factor is the
market type; different industries possess entry barriers. The bigger the market, the more
difficult it is to penetrate. Market size creates potential positive impacts on both the entrants
and existing firms. These advantages range from enjoying economies of scale, absolute cost
advantage, and differentiation. Large market entrants have better chances of penetrating a
new market or offering a differentiated product.
The goal of every new market entrant is to tap into the profits. For an entrant, the
business commences once sales are made. If the new entrant has a better strategy in
offering services and products, then this might pose a risk or the competing firms. These
strategies can range from offering huge discounts, customized customer services, and
products (Min, Kim, and Zhan, 2017). If a new entrant gains the upper hand in the market,

the existing firms might have to either change their services and products, reduce their
prices to make more sales to have a competitive edge with the new entrants, or completely
modify their operations strategy. These changes might come at the expense of enjoying low
profits and reducing consumer rates.
The success of the industry can be measured by the number of newcomers that are
trying to enter the market. At one point the industry gain success and high sales when there
are a lot of services and customers and very few people who are providing the services.
After this stage, the industry is being targeted by the people and the investors and they start
investing in the business where they believe that they can gain the same sales rate and the
same profit. Some newcomers enter the market and gain success but due to the entrance of
a lot of newcomers, the value of the industry starts to decrease. The reason is that when
there are too many suppliers, the competition starts to rise and in order to make the product
reach the audience, the manufacturers start to reduce their prices. This brings in less profit
and the competitors all have to reduce the prices, thus making the entire value and the profit
of the industry gets to the lowest (Jørgensen, 2019).
The industries tend to change whether in a small span of time or after a decade but
they do change. This change can easily be calculated and can never be stopped, therefore
many organisations make up their future plans when they get the idea that the industry is
about to change. The change is mandatory and unavoidable because of the product life
cycle. Every product has its life cycle and it is meant to die after getting to the highest limits.
The life cycle of the product includes four stages. The first stage is an introduction that is all
about the idea of how the product is being formed (Benghozi, Salvador & Simon, 2018). The
second stage is growth in which the product gains the attention of the customers and it starts
to reach towards its growth. The third stage is maturity, as more and more customers and
people start to get to know the product, the more it starts to get mature. In the maturity stage
the growth of the product reaches towards the top and then after that it starts to decline
because of a number of reasons. The reason can be that the public is no longer in need of
the product, there can be an alternative of the product, there can be other competitors who