Capital Corp Merchant Banking Consulting

Presently, MRE is not in a strong competitive position within their industry. While the barriers to entry are high due to the costs of R&D, they face an intensely competitive landscape. This threat will become even greater over the next few years as their primary patents begin to expire. Competitive rivalry is high amongst the industry, and MRE has been losing ground to its rivals. Due to the current recession, buyers are becoming more price sensitive, which is increasing the likelihood of them choosing generic alternatives.

Another setback for MRE will be to face the forecasted unfavorable exchange rate exposure from their non-US sales. They are currently utilizing a combination of hedging techniques in order to minimize this exposure. The combinations of these factors are putting intense pressure on MRE to boost its performance in future years.