For this reason, California faced with a electric power crisis. So power outage was occurred frequently and electric charge was risen sharply since late 1998.
③ Bankruptcy of PG&E
- As a result, PG&E (Pacific gas& Electric) suffered financial difficulties because energy supply costs had risen and selling prices had been regulated. They couldn't shift a burden to consumer. So, their deficit
of substitute Producers
The threat of substitutes to the automotive industry is fairly mild, especially in North American market. In North America, dwelling sites are geographically dispersed except for a few metropolitans such as New York. In addition, not many cities are providing subways in North America since it cost too much considering the number of passengers and profit they wi
for discounted prices for 20 minutes. Considering the fact that consumers had fragrances on blue light, he accelerated price competition with Wal-Mart through this new managing means.His Blue Light scheme, however, ended in failure. His strategy was to offer lower prices than Wal-Mart did by cutting off the funds for paper advertising to make up the costs, but the business eventually hit the skid
for all parties to be well educated regarding the consequences of bankruptcy. One example is the ability of a bankruptcy court to reduce the principal balance of a mortgage loan under certain circumstances. It is also wise for borrowers to understand the limitations of bankruptcy, however, so they don't take an imprudently aggressive stance with their lender.
Reorganization
Reorganization m
Threat of competitors:
Southwest or Jet Blue have low cost prices and positive profit.
Good consequence:
Get away from bankruptcy
Bad consequence:
Employees are dissatisfied for 2 reasons:
First, because decrease of salaries
Second, because executives have big bonuses at the same time
6 years later, this problem persist
$375 million of losses in the first quarter of 2009