Free Essay

Industry Analysis

In: Business and Management

Submitted By katesjastin
Words 1730
Pages 7
Kates Jastin Aguilar

Rachel Ann Rabulan

I. Cover Page

II. Executive Summary

III. Industry Analysis

A. Environmental Analysis

The competition between businesses within the textile and clothing industry has always been steep. The change in lifestyle combined with the fast changing trends has left entrepreneurs with the challenge of keeping pace with the demand of the consumers. With KRaze-Zip’s fresh, unique, and high in quality yet economical products, it is in the best position to answer such growing needs.

The Clothing Accessories Industry Today

Since KRaze-Zip will be selling clothing accessories, it will be penetrating the clothing and textile industry. The clothing and textile industry has been a declining industry in the Philippines since 2005. This decline is due to the MFA (Multi-fiber Agreement) phase out and lowered of trade quotas which greatly affected the Philippines due to its inability to compete with countries with lower wage costs. Aside from this, the global crisis in 2008 has also led to the decline of the industry not only in the Philippines, but also worldwide. However, the textile and clothing industry remains to be Philippines’ second largest industry based on the number of establishments according to the survey released by the National Statistics (August 29, 2012). Out of 4, 643 manufacturing firms employing 20, 7.5% or a total number of 347 establishments came from the wearing apparel industry. Meanwhile, the industry generated 85, 805 jobs in 2010 (latest data) or 9.8% of the 55.7% of total employment provided by manufacturing companies employing 20 placing it in rank 2 after the electronic component.

[pic][pic]

Despite the decline in the clothing and textile industry, clothing accessories was seen with a better spending pattern. According to an article released by reportlinker.com, more consumers opted to buy accessories because of its relatively cheaper price compared to other clothing items. Also, the growth of the clothing accessories market is perceived to increase in the coming years and is expected to reach $9 billion by 2015 for the handbag sector alone (Global Industry Analyst).

The clothing and textile industry is expected to resume its growth by the end of 2012 and will grow even more in 2015 due to global recovery from the recession period. This is also evident with the Philippines GDP continuously rising in a steady rate, it is now considered as one of the leading economies in the South East Asia region. More foreign investors are also investing their money here because of the country’s growing economy and political stability. With these, more businesses will yield higher profit and more jobs will be generated. All these will give the people higher standard of living and higher purchasing power which will soon lead to an increase in the industry growth.

The industry also depends on technology for its improved production. It plays an important role in the purchasing and manufacturing of raw materials, the transportation, production process, and advertisements.

As for the political and legal environment, KRaze-Zip might be faced with issues relating to patent. This shall be discussed in the SWOT analysis portion of the paper.

B. Industry Analysis

i. Demand

Since bags are used on a day to day basis, there is always a demand for it in the market. Bags are not only used as a fashion statement but mainly because of its functionality as well. It is used by men and women, kids and adults. It serves different purposes and occasions like going to school, to work, to parties and formal events, and for travelling. The demand for it as a means for carrying luggage and as clothing accessories even increase a bit more during special seasons like Christmas and Birthdays since they serve as perfect gifts, and reaches its peak during back-to-school season.

The determination of demand are measured through market tools and research, use of break even analysis and various forecasting techniques such as exponential smoothing and seasonal variations.

ii. Future Outlook and Trends

The growing economy of the Philippines and the regaining of stability of the global economy portray positive news for clothing accessories manufacturers. The rise in the economy also denotes the rise of the standard of living of the people in a country. The Philippines, in particular, with its increasing GDP growth rate, will give the consumers a greater purchasing power and higher disposable income. All these could lead to the revival of the clothing and textile industry which is timely for the market penetration of KRaze-Zip. This way, it will keep pace with the growth and peak of the industry.

C. SWOT ANALYSIS

| | |
|STRENGTHS: |WEAKNESSES: |
| | |
|Unique and customizable bag designs |Lack market awareness |
|Economical |Limited operating history |
|High quality | |
| | |
|OPPORTUNITIES: |THREATS: |
| | |
|Unique product concept |Style piracy and other intellectual property issues|
|No store offers exactly the same product. |Products not achieving popularity |

The first strength that business has identified is its unique and customizable designs. KRaze-Zip will break away from the usual handbags that are made out of leather and cloth. Aside from using zipper as main material, it will offer multi-purpose bags and will definitely give its customers a sense of satisfaction by giving them the privilege to customize their own design that will fit the mood and personality they have. This would also help answer the demands of different tastes. KRaze-Zip also finds its product’s high quality as an advantage. It will be partnering with YKK, a trusted brand of zippers, to supply the business with its main material. Another strength that it has identified is the products being economical in nature. Since the industry has only begun to recover, more consumers will opt to buy the product because of its multipurpose feature (five uses in one bag) that is sold at an affordable price of P400-P500.

The first weakness that KRaze-Zip has identified is the lack of market awareness about the products. However, this solved by using various marketing techniques and advertisements. Another weakness identified is the business’ lack of operating history. To strengthen such weakness, KRaze-Zip will be leveraging the experiences of external advisors for various management decisions and also its day to day operations.

One of the opportunities identified was the unique product concept and that there is no store that offers exactly the same product. This was also one of the reasons why the owners of the business decided to offer such in the market. This way, KRaze-Zip will not be following trends but rather it will be the one to set them.

The major threat to be faced is style piracy and other intellectual property issues. Product concept plays a vital role in the success of a business that is why concepts and designs are often stolen. And since KRaze-Zip’s concept will be something new to the market, it might be subject to it as well. Smaller firms and budget houses might opt to copy the concept and sell the products at a cheaper price. To reduce such risk of being copied, the business will ensure that all its trademark, methodologies and tools are copy right protected and patented. The high quality will also be a solution to patent issues because consumers will buy things they know they can use for a long time which can actually help them reduce cost. Another threat involved is the inability of the business to make its own mark and raise product popularity. If not addressed properly, this could lead to decrease in sales, or worse, demise of the business. Branding recognition will be KRaze-Zip’s key to success. By strengthening, improving, and creating products specifically tailored to the needs of the consumers, KRaze-Zip will effectively position itself in the market.

In conclusion, KRaze-Zip will be able to mitigate risks and threats, overcome weaknesses, and position itself in the market through advertisements and strong and effective marketing plan, branding, and attracting and maintaining customers.

D. Analysis of Competitors (BENCHMARKING)

|FACTORS |WELL KNOWN BRANDS |BUDGET HOUSES/ TIANGE |KRAZE-ZIP |
|Quality |High |Low to Mediocre |High |
|Products offered |Offers different kinds of bag|Offers different kinds of |Offers bags of functionalities,|
| |of one function only (i.e. |bags including expandable |multipurpose bags, and |
| |for formal occasions, school,|bags |customizable bags. |
| |beach) | | |
|Design |Designs are ready made. |Designs are ready made. |Customizable/ pre-order |
| | | |Uses zipper as a main material |
| | | | |
| |Uses leather and other fabric|Uses leather and other fabric| |
| |for its main material. |for its main material. | |
|Price |Bags: |Bags: |Bags: |
| |P600-P1500 |P150-P400 |400-800 |
| |Accessories: |Accessories: |Accessories: |
| |150-500 |40-250 |(50-250) |

Although the clothing and texting industry have gone through a state of decline, the competition between firms within the industry remains to be steep and dynamic. KRaze-Zip’s nearest direct competitors for the clothing accessories will be those manufacturing companies who have established their name in the market, and the tiangges or budget houses.

The factors considered for the bench marking were quality, products offered, the prices, and design.

Well known brands have gained their popularity through its high in quality products. However, its high quality and good designs come in a high price as well. This is why more budget conscious consumers choose to purchase their bags and accessories in tiangges and budget houses. But instead of saving money, they spend more because they are actually spending money for buying low quality products.

KRaze-Zip balances such factors by offering the market hip, stylish, and trendy designs that comes in an affordable price, without sacrificing the quality. It offers expandable bags and multipurpose bags which can be transformed and used in different ways. So, instead of buying a P600-P1500 for one bag, KRaze-Zip offers its consumers with a 5-in-1 bag in a budget friendly price, stylish and economical at the same time.

Meanwhile, the KRaze-Zip not only focuses its attention to its direct competitors, it also keeps an eye on its indirect competitors as well. KRaze-Zip’s indirect competitors will be those small time bag manufacturers have been dominating the online community, and clothing and footwear companies like Bench, Penshoppe, Folded n’ Hung, and Primadona who have included bags in their product line. The manufacturers of eco bags are also one of the perceived competitors of the business because of the growing demand of the people for environment friendly products.

Similar Documents

Premium Essay

Industry Analysis

...Industry Analysis Our group realized that the Instant Messaging industry is a very competitive industry. We make this conclusion after doing the Michael Porter’s five forces analysis. In overall, five sections of the industry can be described as below: * The existing rivalries in IM industry is high: By looking through the source of information online, we figured out that there are many competitors within IM industry. Currently, there are at least 12 major players in the market. Among these 12 major players, we found that some of them exist before the founding of LINE apps, which means that they transformed from desktop IM into mobile IM. However, most of these initially desktop IMs are doing so well in the existing market due because they have lack of capabilities to compete with those entrants who target only at the mobile segment. For example, ebuddy was established in 2003 as a light version of desktop IM. They start up as a cross platform IM, which means that if you have user accounts in different IMs platform, you would only need to download ebuddy to chat with friends. For example, you have MSN and Yahoo! Messenger, you need not to download both Yahoo! and MSN chatting tools, instead you can use only ebuddy to chat in both Yahoo! and MSN. They entered mobile segment in 2009 but it appeared that it was not so attracted by the public. Overtime, different player in different geographical region dominates the market of mobile IM industry. Kakao Talk dominates......

Words: 2266 - Pages: 10

Premium Essay

Industry Analysis

...The computer hardware industry consists of companies that manufacture and assemble personal computers, computer hardware, and computer peripherals. This industry is highly competitive, which means that companies must continuously be innovative in order to sustain a competitive advantage. The major companies of this industry include Oracle, IBM, HP, Dell, Apple, and Toshiba. This analysis will focus on computer manufacturing since it is the largest component of the industry, containing 43.7% of the market’s total value. The computer industry has been rapidly growing and shows no signs of slowing despite the recent economic downturn. This report relies on secondary research sources. Many of them from online sources such as; company websites, S&P Net Advantage industry reports and IBISWorld. Primary research includes the IBC mentor and additional faculty and library staff. PEST Political Beginning with the political and legal aspect of PEST, this industry is subject to several regulations. First, like any company in the US, the companies in the computer manufacturing industry must follow GAAP accounting laws. Some companies are subject to regulations regarding ethical business practices such as the Foreign Corrupt Practices Act and the Fair Labor Standards Act. The American Inventors Protection Act of 1999 addresses the rights of inventors as well as how they can effectively submit and use patents. Legal battles among major firms in the industry are quite common and......

Words: 2922 - Pages: 12

Premium Essay

Industry Analysis

...Comprehensive Industry Analysis | COMPUTER (HARDWARE & SOFTWARE), CONSUMER GOODS, E-COMMERCE, ENTERTAINMENT, FINANCIAL SERVICES | | SBI Superstars present a production of Group 2’s analysis on the specified industries. | | Tajuan K. Griffin – ChairMarcus Bourgeois – Co-ChairArica McCullumMichael LatsonRicardo CopelandDavid BercklerAyokunle Ojutalayo Ifeanyi Korie Karen JohnsonRobensky Theodore | 7/21/2010 | | ------------------------------------------------- Table of Contents Table of Contents………………………………………...…………………………………….pg 2 Project Overview………………………………………………………………………………pg 4 Computer Industry pg 5 Hardware Overview………………………………………........................................................pg 6 Hardware Top 5 Financials…………………………………………………………………….pg 7 Hardware Top 5 Analysis………………………………………………………………...........pg 8 Software Overview...................................................................................................................pg 12 Software Top 5 Financials……………………………………………………………………pg 13 Software Top 5 Analysis……………………………………………………………………...pg 14 Computer Industry Outlook…………………………………………………………………..pg 15 Consumer Goods Industry pg 16 Consumer Goods Overview......................................................

Words: 4971 - Pages: 20

Premium Essay

Industry Analysis

...Industry Analysis By Week 3 Industry review The pet grooming industry is one that is steadily growing from year to year. According to the American Pet Products Manufacturing Association, an estimated $2.7 billion was spent on grooming and boarding services in 2006 alone. Then again in 2007, the services grew to $2.9 billion. In this industry it is important to be aware of the demographics and the new trends that develop year to year in order to stay up with the times and accurately identify one’s customers and potential customers. With an estimated 74.8 millions dogs in the U.S. this is evidence that pets are a big part of our lives. According to the 2007-2008 APPMA National Pet Owners’ survey, many pet owners spend an average of $127 on grooming and grooming aids. Furthermore, the 2006 Household Spending for pet services shows the following average spending: • Married couples with no children $38.72. • Married couples with children $30.69 • Single Parent $18.88 The middle and older age group also pamper there furry four legged friends. Average spending: • 35-44 years old $29.04 • 45-54 years old $44.50 55-64 years old $26.72 Regulation review and legal concerns Location of business is in New York, however we are mobile. The type of business that will be set up will more than likely be an LLC to protect our personal assets. We would need to contact the New York......

Words: 1875 - Pages: 8

Premium Essay

Industry Analysis

...Industry Analysis (Case 1) Paper Instructions and Grade Sheet MAN 4720 Strategic Management Assignment Value - 50 points possible (all team members receive the same grade) Due Date: See syllabus Purpose: Each team will select an industry to study. You will conduct an industry analysis (also called a competitive analysis) of your assigned industry, and to collectively write a paper reporting your results. This paper will require that you apply the concepts that you have learned in the course. This assignment will enable you to learn how to research and analyze the external and competitive nature of an industry. It is necessary to have a thorough understanding of an industry before a firm can develop strategic plans to obtain competitive advantages. Basic Attributes of Your Report: The best reports are the result of a lot of research. There is a direct correlation between research and grades. To earn the highest grade possible, your report should demonstrate evidence of: • Significant secondary research. • Integration of course concepts. • Written in plain English and demonstrating understanding that clarifies and distills the problems and opportunities competitors in the industry are facing. • Precise business writing skills. (You will be penalized for writing mistakes.) The best reports also summarize what you have learned from your research. A great report demonstrates that the student has thoroughly researched the industry,...

Words: 3252 - Pages: 14

Premium Essay

Industry Analysis

...Team Industry Analysis Paper Overall snapshot of industry The pet care industry entails the comprehensive care of domestic animals. For example, when your pet fish needs food, a consumer purchases the fish flakes from a pet supply store. Another example of a segment in the market is a veterinarian. When your pet is sick, you take it to be treated. The overarching industry also includes buying pets. Since the pet care industry is very broad, and dominated by PetCo and PetSmart, we are focusing on the niche daycare (boarding) segment of the industry. The daycare industry focuses on providing supervision, companionship, and exercise services for a consumer's pet while away. In 2011, 63.2% of pet owners considered their pets to be family members according to the American Veterinary Medical Association.5 The demand for quality care of animals while the “parents” are away is incredibly high. The pet daycare industry provides the supervision and interaction that comforts pet-owners during either a long-term, short-term, or even daily stay. The main reasons pets are dropped off at a daycare are either due to vacations or daily jobs that take owners away from pets. Very often in this industry a pet daycare facility will offer other pet services such as grooming, pet food sales, and pet supply sales as add-ons to the primary service of boarding; however, this makes up a small percentage of total revenue. Industry specific statistics and details re: pet daycare and boarding ...

Words: 3912 - Pages: 16

Premium Essay

Industry Analysis

...Alan Kerstetter ACCTG 404 Tobacco Industry Analysis Part 1: Analysis of the Tobacco Industry Using Porter’s 5 Forces Framework By using Porter’s Five Forces Framework I will discuss five basic competitive forces within the tobacco industry. The threat of potential new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes, and the extent of competitive rivalry will all be addressed in this analysis. 1. New Entrants The barriers to entry in the tobacco industry are initially low and it is easy for small local and regional companies to enter into the market, but the barriers to enter the market nationally are very high. The economies at scale in manufacturing, distribution costs, and marketing at the national level make it very difficult for start-up companies to enter into the national market. There are substantial costs in raising the capital needed to build manufacturing facilities that can mass-produce tobacco products at the national level. Also, the costs of packaging goods such as cigarettes, at a mass level can generate high costs. Brand identity can also pose a barrier to entry for new entrants. Advertising restrictions imposed on electronic media by the U.S. government make it hard for any new entrant to gain brand awareness and also make it difficult for current top players in the market to increase their brand awareness. While many companies once relied on brand incentives in order to......

Words: 3049 - Pages: 13

Premium Essay

Industry Analysis

...Industry Analysis Industry Analysis is a key component in strategic management as it equips a company with better understanding of its operating environment. Therefore, industry analysis enables a company to formulate effective strategies for success. Industry analysis involves the evaluation and diagnosis of Porter’s five forces to determine a business’ profit potential and the duration of time for a return in capital invested. The five forces that are evaluated in industry analysis are: Ease of entry into the market by competitors, Customer’s bargaining power, Suppliers bargaining power, Availability of substitute products or services and competition from rivals. Analyzing and evaluating Porter’s five forces can assist a company in identifying the best suited and most suitable stance to assume in the industry which can be either an adoption of defensive measures against the five forces or an adoption of persuasive measures in influencing the forces to the company’s favor. Understanding Porter’s five forces in correlation with positive or negative effects on a business can enlarge the purview of the business or company’s strengths and weakness. Therefore, industry analysis becomes a key factor in strategizing changes that result in desired positive impact as well as highlight specific industry trends that can be fashioned into business opportunities. Industry analysis facilitates with the identification and understanding of Key Success Factors (KSF) that......

Words: 322 - Pages: 2

Premium Essay

Industry Analysis

...THE MANUFACTURING INDUSTRY ANALYSIS On top of almost every economy usually stands the Manufacturing industry and has always been the source of growth of most economy. However, for Jamaica this sector's has been impeded by a number of factors including crime, high energy costs, reduced access to affordable raw materials and thereby resulted in a decline in the industry. THE FOUNDATION Jamaica possesses a highly diversified manufacturing industry whose development has been based on continuous investment from other countries, which has produced high-quality products and dominated the country’s export over the last 50 years. A primary force behind the increase in the manufacturing industry resulted from the shortage of goods after World War 11, therefore a lot of the international goods were produced locally. In its early stages of development of the manufacturing industry was overwhelmed with opportunities. With the support of Government, an entrepreneurial class, a local market that could facilitate over 1 million individuals, and labour in abundance, the manufacturing industry was unstoppable. The company was moving so rapid that sectors quickly diversified from sugar and rum into producing a wide range of manufactured products such as garments, processed foods, machinery, and electrical equipment, and this resulted in an impressive growth. Real value increased for the sector increased at an average of 7% annually between 1938 and 1950, and its contribution to GDP......

Words: 3464 - Pages: 14

Premium Essay

Industry Analysis of the Pharmaceutical Industry

...Corporate Development Strategies Faculty 02 – Economics and Business Administration Johann Wolfgang Goethe-University Frankfurt Industry analysis of the pharmaceutical industry Written assignment Submitted by: Heiko Kreuz, 4897736, s5706079@stud.uni-frankfurt.de Janine Seelinger, 4896818, s1010710@stud.uni-frankfurt.de Dana Winkler, 4497800, s1099437@stud.uni-frankfurt.de Supervisor: Prof. Dr. Lars Schweizer November 6, 2015 Table of contents 1 Introduction...........................................................................................................................1 2 Theoretical framework of Porter’s Five Forces ........................................................1 3 Industry analysis by means of Porter’s Five Forces ................................................2 3.1 Competitive rivalry ................................................................................................... 2 3.2 Bargaining power of suppliers.................................................................................. 2 3.3 Bargaining power of buyers ..................................................................................... 2 3.4 Threat of substitutes ................................................................................................. 3 3.5 Threat of new entrants .............................................................................................. 3 3.6 The regulators ............................

Words: 1934 - Pages: 8

Premium Essay

Industry Analysis

...Industry Analysis Petro Oil Berkeley College J. Kerr, S. Powder. T. Lopez Background An industry analysis is a useful tool for business strategists. It helps businesses understand various pieces of the marketplace and how these various pieces may be used to gain a competitive advantage. Analyzing an industry you would have to know the industry SWOT. It is important for Petro oil to identify the threats and opportunities facing their business and also to focus their resources on developing unique capabilities that could lead to a competitive advantage. Analyzing Petro Inc., and the heating companies overall will give the company a better understanding of their position relative to other companies that provide similar services. In order to help implement initiatives for Petro Inc. we will analyze some aspects of the company to help identify its strengths and weakness and where there is opportunity for growth. M.A Fessler was the inventor of the historic oil burner. In 1915 he started his own company Called the Fess system company and as we know it today as Petro. The first oil burner was installed in Boston, which resulted in a rapid growth the first few months of Petro's success. Soon after Petro made a huge decision of entering into its first contract to purchase fuel oil. Bases out of Stamford, Connecticut, today Petro Inc. provides heating oil across the United States. Petro Inc. also has......

Words: 1418 - Pages: 6

Premium Essay

Industry Analysis

... The five forces in Industry analysis Porter five forces analysis is a framework to analyse the level of competition within an industry and business strategy development. Pullan (2013) asserts that these forces were developed by Michael Porter to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. These five forces are depicted below; Fig (i) A graphical representation of Porter's five forces (Cimasi R J: 2014) Threats of New Entry Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents (which in business refers to the largest company in a certain industry, can be viewed as this incumbent). This force determines how easy (or not) it is to enter a particular industry. If an industry is profitable and there are few barriers to enter, rivalry soon intensifies. When more organizations compete for the same market share, profits start to fall. It is essential for existing organizations to create high barriers to enter to deter new entrants. Threat of new entrants is high when: * Low amount of capital is required to enter a market * Existing companies can do little to retaliate * Existing firms do not possess patents, trademarks or do not have established brand reputation * There is no government regulation * Customer switching costs......

Words: 698 - Pages: 3

Free Essay

Industry Analysis

...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment......

Words: 14781 - Pages: 60

Premium Essay

Industry Analysis

...Syracuse University INDUSTRY ANALYSIS OF COLLEGES AND UNIVERSITIES IN THE UNITED STATES Matthew Gerlitzki Strategic Management - MBC 645 Professor Wimer May 11, 2016 Industry Definition This is an industry analysis paper of the Colleges and Universities in the United States and it is important to begin with a definition. A goal of an industry definition and boundaries scope must not be too narrow or broadly defined because this will alter the scope of the analysis and result in a skewed conclusion. I will begin by differentiating between non-profits and for-profits businesses due to the different strategies involved within management in attempt to maintain the scope of this analysis. At first thought this seems irrelevant, however, the internal and external environments of these two types of business structures are different and management must prioritize accordingly. In academia, the for-profit institution must operate similar to a regular business with a focus on profitability that will satisfy stakeholders rather than focus primarily on the quality of education. The non-profit institution will focus primarily on education and student success, which will contribute to the brand awareness and prestige that will be discussed later. An analysis of the Colleges and Universities in the United States will be limited to non-profit private and public institutions that offer Bachelor’s, Master’s, and Doctorate degrees. Bachelor’s (undergraduate) degrees are......

Words: 2790 - Pages: 12

Free Essay

Industry Analysis

...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment......

Words: 14708 - Pages: 59