...Purdue extension EC-722 Industry Analysis: The Five Forces Cole Ehmke, Joan Fulton, and Jay Akridge Department of Agricultural Economics Kathleen Erickson, Erickson Communications Sally Linton Department of Food Science Overview Assessing Your Marketplace The economic structure of an industry is not an accident. Its complexities are the result of long-term social trends and economic forces. But its effects on you as a business manager are immediate because it determines the competitive rules and strategies you are likely to use. Learning about that structure will provide essential insight for your business strategy. Michael Porter has identified five forces that are widely used to assess the structure of any industry. Porter’s five forces are the: • Bargaining power of suppliers, • Bargaining power of buyers, • Threat of new entrants, • Threat of substitutes, and • Rivalry among competitors. Together, the strength of the five forces determines the profit potential in an industry by influencing the prices, costs, and required investments of businesses—the elements of return on investment. Stronger forces are associated with a more challenging business environment. To identify the important structural features of your industry via the five forces, you conduct an industry analysis that answers the question, “What are the key factors for competitive success?” Audience: Business managers seeking to assess the nature of their marketplace Content: Presents five...
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...WS5 Case Study Paper Christina M. Barden Indiana Wesleyan University WS5 Case Study Paper The initiatives and promotional strategies of organizations and corporate substructures differ greatly depending on each particular entities goals, interests, and objectives. While many choose to implement specific strategies to open up and increase their consumer market, some utilize techniques that are limited to maintaining current standings, as well as the groups that focus more on corporate agendas. The primary consideration is often times and more often than not intended to pinpoint a select group or favor a reserved population. In most cases, it is the ambition of those involved to identify exactly what these needs are and define it in a manner in which is easily introduced to those who need the information. It is best done by clearly establishing what the product is and how it is in fact different from the rest of the market, creatively introducing ways to increase and grow sales, stabilize sales, and showoff the value of what is already on the market (Kotler, 2009). Colgate is not new to the world of marketing; in fact, they have been marketing to the populations worldwide for decades (www.colgate.com). The marketing team in place for Colgate is responsible for the development and implementation of plans that are directed at the “establishment and maintenance of current and long range...
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..........4 Vision Of Fresh Direct.......................................................................................4 Mission Of Fresh Direct....................................................................................4 Goals/Objectives...............................................................................................5 External Analysis of Fresh Direct..................................................................5 Marco Enviroment.............................................................................................5 Industry Analysis...............................................................................................7 Industry Life Cycle............................................................................................7 Competitors.......................................................................................................7 Critical Success Factor.....................................................................................8 Opportunities & Threats....................................................................................9 Internal Analysis...........................................................................................10 Strengths & Weaknesses................................................................................10 Critical Success Factor...................................................................................11 Strategic Options...............................
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...4th Quarter 2010 | 25(4) THEME OVERVIEW: FUNDAMENTAL FORCES AFFECTING AGRIBUSINESS INDUSTRIES Kent Olson and Mike Boehlje JEL Classifications: Q13, L10, L22, M22, L80 Keywords: Agribusiness, Market Forces, Structural Change, Porter’s Five Forces Agribusiness industries are facing numerous challenges and opportunities resulting from various fundamental forces. An understanding of the forces that are shaping and shifting the competitive landscape is useful to not only understand the strategic positioning decisions of the firms in these industries, but also the dramatic structural changes that are occurring in the food production, processing and distribution sector. This series of articles discusses the fundamental forces creating change in the agribusiness industries, and how companies and decision-makers are being affected by, and adapting to, changes in these forces. We frame this discussion using the analytical concepts of value chains and Porter’s Five Forces. We describe the agribusiness value chain as two chains which become one at the consumer end (Figure 1). One value chain follows plants and plant products, and another chain follows animals and animal products. These two chains blend into one chain at the processing and retailing stages of the chain. We also view the value chain rather simply as four stages: (1) input suppliers; (2) producers; (3) processors and handlers; and (4) retailers. While the value chain could be viewed as specific for different products...
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...amazon global fullfilment strategyAmazon.com Supply Chain This area of the paper focuses on Amazon.com's supply chain and how it supports their business in the internet retailing environment. First, we have discussed Amazon.com's different operating models and explained the different supply chains that support those business models. After the business and supply chain models are defined we have discussed Amazon.com's supply chain network, inventory segmentation strategies, order sourcing decisions, overall replenishment and fulfillment process flows, intra-warehouse process flows, and transportation policies. This report analyzes the overall Amazon.com supply chain for United States distribution with a specific emphasis on the Media product segment. Amazon.com US Retail Product Segment Books, CDs, and DVDs and magazine subscriptions comprise the media product line at Amazon.com (Amazon.com 2002 Annual Report). Amazon.com began as an online bookseller and its first product line expansions were music and movies. As a result, the Media segment comprises a large percentage of Amazon.com overall revenues. In 2004, Media accounts for 74% of all revenues. Within the US, the Media segment accounts for 67% of all revenues. In dollar terms, the Media segment in the US generated $2.6 billion in revenue in 2004, compared 115 to $3.8 billion generated across all segments in the US (Amazon.com 2004 10-K Report). The pie chart below shows the breakout of revenue percentages by product and...
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...stock from one another. 1977 – Illinois becomes the tenth state to have a Wal-Mart store. 1983 – The first Sam’s Club, the company’s first members-only warehouse store, opens in Oklahoma. The new club is setup to compete with Costco, which first opened for business customers in 1976. 1987 – Wal-Mart celebrates its 25th anniversary. After 25 years in business, the company boasts some 1,198 stores with $15.9 billion in sales that year. 1988 – The first Wal-Mart Supercenter opens in Missouri. Those stores, which now encompass some 109,000 to 220,000 square feet, contain a traditional Wal-Mart and a supermarket. 1990 – Wal-Mart becomes the number one retailer in the United States, with some $26 billion in sales. Wal-Mart also purchased grocery distributor McLane Co., which was sold to Warren Buffett’s Berkshire Hathaway in 2003. 1991 – Wal-Mart opens its first international store in Mexico City. The company also continued to increase the number of Sam’s Club by merging with The Wholesale Club Inc. of Indianapolis. Those 28 stores were then integrated into the Sam’s Club chain. 1992 – Wal-Mart co-founder Sam Walton dies at the age of 74. His brother and Wal-Mart partner James “Bud” Walton dies three years later. 1993 – The Wal-Mart International Division is created to increase the company’s ability to expand overseas. 1995 – With the opening of the first store in Vermont, Wal-Mart has stores in all 50 states. 1995 – The company’s 1,995 Wal-Mart stores, 239 Supercenters, 433...
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...Rachel Louise (Long) Bowman was born December 2, 1940 and was the fourth child born to Raymond Fielden Long and Opal Esther Long. Rachel, pictured sitting in a chair, was born in Bluffton, Indiana in one bedroom of their small home. The doctor who delivered Rachel initially presumed that Rachel had died during the birth as she appeared not to be breathing or crying. Her father, Raymond was in the room when the doctor told him and Opal the somber news. Immediately Raymond fainted onto the bedroom floor. Rachel’s maternal grandmother was also in the room and was the first to notice Rachel beginning to cry, which signified she was alive. Rachel’s parents were both from small towns south of Indianapolis, Indiana and had deep family roots there. Raymond Fielden Long, Rachel’s father, was born in 1908. He worked in many trade work jobs that included janitorial work and working for the Buick car company. Opal Esther Long, Rachel’s mother, was born in 1916. Opal’s maiden name was Frantz. She spent most of her working career at Saint Joseph’s Hospital as a central supply person and worked in sterilizing the hospital. Rachel’s parents met, married, and started their family in...
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...Krispy Kreme Case Study: Adapting to the Changing Needs of Consumers By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson Table of Contents Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ....................................................................................................................................... 4 External Environment Analysis ........................................................................................................... 6 General Environment ................................................................................................................................ 6 Industry Environment ............................................................................................................................. 10 Competitive Environment ....................................................................................................................... 12 Internal Environment Analysis .......................................................................................................... 17 Peformance...
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...Krispy Kreme Case Study: Adapting to the Changing Needs of Consumers By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson Table of Contents Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ....................................................................................................................................... 4 External Environment Analysis ........................................................................................................... 6 General Environment ................................................................................................................................ 6 Industry Environment ............................................................................................................................. 10 Competitive Environment ....................................................................................................................... 12 Internal Environment Analysis .......................................................................................................... 17 Peformance...
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...Demand of Pepsi Julliet Indiana Wesleyan University February 21, 2012 Abstract Pepsi is a popular cola brand that is available for purchase at many convenient stores, grocery stores, department store, vending machines and restaurants. It is in an Oligopoly industry. One market place can have a stronger market share than another market place. There are several determinants of demand which can influence the shift in the demand curve left or right or decrease or increase in the demand. Demand of Pepsi Pepsi cola is a cola/soda-pop beverage brand from PepsiCo. PepisCo is known as an Oligopolistic industry. There aren’t that many firms the market that Pepsi cola is in. Pepsi cola first made a public appearance in the 1890s as “Brad’s Drink”. It later became known as Pepsi. It was trademarked on June 16, 1903 and its first logo in 1905. Pepsi made a world appearance in 1909 with the first celebrity endorser, Barney Oldfield. Due to the high price of sugar, which was in high demand, during WW1, Pepsi Cola Company went into bankruptcy. It bounced back in 1936 and started to sell a 12-ounce bottle for 10 cents. Because price is a main determinant of demand, the price was then drop to 5 cents. This price boosted the sales for the company. The company started to market to African Americans. The strategy was done to help market to others who can enjoy and contribute to the brand and the new popularity of Pepsi. In 1975, Pepsi was voted most favorite beating out its rival Coca-Cola...
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...Customer Satisfaction and Customer Loyalty among Grocery Shoppers a research done in The Netherlands [pic] ERASMUS UNIVERSITY ROTTERDAM Faculty of Economic Science Author: Stephan (S.A.) de Jong Supervisor: Drs. Jordana Liberali Exam number: 311458 E-mail address: 311458sj@student.eur.nl / s.a.jong@hotmail.com Course : Economics and Business Economics (Marketing) Thesis: Master thesis Date: August 11, 2011 Preface This master thesis is considered as the final exam before graduating in a Master of Economic Science. With this last piece of work I will complete my study Economics and Business Economics, specialized in Marketing at the Economic Faculty at the Erasmus University of Rotterdam. The topic of this thesis is customer satisfaction and customer loyalty among grocery shoppers in the Netherlands. The focus of this research will be on the region ‘Het Westland’, a district in the southwest of the Netherlands. The purpose of this research is to investigate the relationship between customer satisfaction and customer loyalty and the main drivers of those two. The research took me about seven months and it was very interesting to see the different aspects of doing a research like this. I wish to pay special thanks to Drs. Jordana Liberali, my supervisor at the Erasmus University of Rotterdam, for advising, supporting and providing me with useful information but also criticism...
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...didn’t shop; instead she took mental notes about store traffic, first at the Reed store and then at an indirect but increasingly worrisome kind of competitor—a dollar store. The Reed was predictably well lit and inviting, and Collins could see three registers open and two or three customers in line at each. “Not too bad” she thought, “but not what I would hope for at this time of day, this close to the holidays.” She’d felt the same way at two other Reeds she’d visited that day . Collins walked on to the Dollar General (DG). A fairly steady stream of shoppers entered DG’s doors, their progress slowed by families exiting with plastic bags jammed full. When Collins looked inside, she noticed workers filling what was obviously a new freezer case—the first freezer she had seen in a dollar store that day. This DG was doing just as well, to judge from this glimpse, as the Family Dollar she’d walked past half an hour earlier at North Valley—but no better than the Aldi store she had visited in the morning. That Aldi trip was interesting: a bright and spotless mini- supermarket, run by a giant firm from Germany that carried one-tenth the food items that a Reed did and sold virtually no brand names, only private-label—but still posed a threat to Reed due to its remarkably low prices. As she drove out of the parking lot, thinking back to last week’s discussions with the management team about the newest threats to Reed’s position as a leader among the region’s supermarkets, Collins wondered...
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...Case 19: FreshDirect Is It Really Fresh?* With a bold promise on its website entry page, FreshDirect claimed, “Our food is fresh, our customers are spoiled…. Order on the web today and get next-day delivery of the best food at the best price, exactly the way you want it, with 100 percent satisfaction guaranteed.”1 However, recently many consumers have questioned the freshness of the food delivered by FreshDirect. Since online shopping does not give the chance for customers to feel and choose the products themselves, they must rely completely on FreshDirect to select the food for them. This notion has not appealed to some customers. Operating out of its production center in Long Island City, Queens, FreshDirect offers online grocery shopping and delivery service to more than 300 zip codes in Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and parts of Connecticut. FreshDirect also offers pickup service at its Long Island City facility, as well as corporate service to selected delivery zones in Manhattan and summer delivery service to the Hamptons on Long Island. When it was launched in July 2001 by Joseph Fedele and Jason Ackerman, FreshDirect pronounced to the New York area that it was “the new way to shop for food.” This was a bold statement given that the previous decade had witnessed the demise of numerous other online grocery ventures. However, the creators of FreshDirect were confident in the success...
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...Alcohol regulations. Europe, USA, Russia Introduction. Within my work I am going to review part of the countries’ legislation related to the existing alcohol regulations and existing polices, conventions and its development plans. Analysis will be based on the samples of different countries: Russia, EU (different countries) and United States. There are different areas of the existing alcohol regulations: risky environments, tax and prices, market restrictions and marketing control. All of them are more or less affecting business activities in different aspects. Applicability of this report: There are a lot of different types of businesses strongly dependent on alcohol sales or alcohol production worldwide. Moreover there are a lot of international corporations which has core business linked to operations with alcohol. To be able to operate their business on the different markets they have to consider different alcohol regulation in different countries in their business models before making market enter decision and follow existing rules and respective policies updates in daily operations. The examples of this business could be: 1. Producers or importers of alcohol beverages or cosmetic. Examples of corporations - Heineken, Diageo. Strong dependency of core business on alcohol regulation 2. Distributors of alcohol beverages or cosmetic within the country. Strong dependency of core business on alcohol regulation 3. Café, bars and restaurants...
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...paper wills stress areas fo the Pick n Save store because it is the largest of the four banners of Roundy’s. We have determined the current market and geographic location to be concentrated in southeast Wisconsin and moving West to Minnesota. A long term object of Willis Stein & Partners is to create a distribution chain from Chicago to Milwaukee. Our evaluation of Roundy’s strategic goals have resulted in identification of several grand strategies that Roundy’s uses in its daily operations as well as short and long term goals. An interesting note is that in the supermarket environment, Roundy’s and similar companies will sell their own brand of goods along with there competitors goods side by side. So Roundy’s is a distributor of grocery goods, health and beauty, and other household items, as well as a manufacturer of the about items....
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