...basic question that is what will happen in the markets in which company choose to compete(Asch & Bowman, 1996)? By answering this, the company can therefore to find a well position for its company and make their own strategies but in the meantime, the other issues will be raised, that is what markets are the company are competing in? In order to define the market the firm is, company need to know well about what customers needs, and who it is the customers see the firm will competing with. Porter (1980) said that “the first step in structural analysis is an assessment of the competitive environment – the basic competitive forces and the strength of each in shaping industry structure. The second is an assessment of the company's own strategy-of how well it has positioned itself to prosper in this environment.” When these two are taken together, these two will be the key factors to forecasting a company earning power. 2. Literature Review 2.1 The theory of Porter's five forces The successful of a company's competitive strategy depends on how it relates to its external environment and how well they prepare for it. In the contrast, a company who does not...
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...Coursework 1 Hand in Date and Time: 13/11/13 at 3pm on StudyNet and in Coursework Hand-In point Weighting: 30% Title: Marketing Audit Format: Report Type: Group (approx 4-5 members) Select one of the following organisations and familiarise yourself with the relevant organisation website * Apple Inc www.apple.com CONSUMER ELECTRONICS * Tiffany’s & Co www.tiffanys.co.uk LUXURY RETAIL 1. Write a brief overview of the organization Access the relevant industry Mintel /Keynote report and other relevant research from information databases 2. Identify and illustrate the SBU’s (Strategic Business Units) for the organization External Environment 3. Apply PESTEL to the chosen industry. Illustrate and provide detailed explanations 4. Apply Porters 5 Forces to the relevant industry /organization /sector. Illustrate and provide detailed explanations 5. Illustrate in a grid format: Opportunities and Threats Internal Environment 6. Apply McKinsey’s 7S matrix to the organization /sector 7. Apply Marketing mix to the organisation /sector 8. Illustrate in a grid format: Strengths and Weaknesses SWOT Analysis 9. Illustrate in a grid format: corporate SWOT Analysis 10. Illustrate in a grid format: SBU SWOT Analysis (For Apple choose ipad and for Tiffany’s choose Jewellery Strategic Positioning 11. Identify competitors for Apple or Tiffany’s and using a perceptual map with appropriate axes demonstrate a gap in the market...
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...A WATER UTILITY CONCESSIONER PORTERS FIVE FORCES ANALYSIS 1. Rivalry among existing competitors- Low to Non-Existent. Since it is under concession agreement, there is no other water utility company that can engage any business similar to A Water Utility concessioner, unless granted by the government under special agreement and with full knowledge and approval of A Water Utility concessioner. 2. Threat of new entrants- Low to Non-Existent. Companies that may want to apply for the concession must first comply with government requirements and also must have a substantial amount of capital investment (around 6 Billion Dollars starting capital), not to mention the technical expertise to run and maintain a water utility company. 3. Bargaining Power of Supplier- Medium. Although the primary raw material of A Water Utility concessioner is water which is basically free, the materials used for distribution line maintenance and expansion are quite few. Though this is the case, A Water Utility concessioner still has a slight control on the pricing of these materials unless the raw materials for these items like resin, steel, alum coagulating chemical used in treating raw water), etc. increases. 4. Bargaining Power of Customer- Medium. This is due to the regulated tariff by the government under the MWSS Regulatory office which deals directly with A Water Utility concessioner.\ 5. Threat of Substitute- Low. The small water refilling stations also get their...
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...Supermarket Industry Porters 5 Force’s Porter (1980) illustrates in this analytical tool 5 variables that determine the attractiveness of an industry for organisations in terms of profitability in their immediate environment. Using the forces in this model we can analyse how attractive the UK Supermarket industry is to enter, the 5 forces are as follows. The threat of potential new entrants Barriers to entry in the UK supermarket industry relies on the entrants capability of matching capital requirements of existing firms, the UK supermarket industry is dominated by firms known as Tesco, Asda, Sainsbury’s and Morrison’s (Big 4) owing up to 69% of market share in the UK. Looking at the experience curve (1960: Boston Consultancy Group) A new entrant would have to achieve the economies of scale needed to achieve cost parity with the big 4 and compete on cost advantage. In the supermarket industry achieving economies of scale is not on production but other factors such as efficiency, pricing, range of goods and value of products. Tesco for example have very low cost margins in comparison to the scale of their operations and distribution channels but they are able to achieve high sales because the convenience, range of products and different services they offer. Product differentiation is another barrier to entry, a new entrant would need to achieve and individual level of differentiation and attain an identity through promotions and costly advertising, total advertising...
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...Michael Porter’s 5 market forces framework. McDonalds Corporation continually monitors its performance to make sure it is competitive and profitable while also being aware of its immediate community responsibilities. This can be achieved by using the Porters 5 Forces model so the company is able to determine where its business needs to change or improve in order to stay competitive in the fast food industry. Porters 5 Forces model focuses on 5 key factors affecting the environment in which a business operates. The threat of substitute products A substitute product is one that can be used as an alternative to a company’s own. It could be argued that the threat of substitute to McDonald’s comes from pizzas and other domestic kebab and fast food houses. However, most of the above do not have the same level of convenience that McDonald’s offers, in having a number of outlets in big cities and also through the use of multiple drive-through outlets. The threat of new competitors The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are: * How loyal are the end users in this industry? * How troublesome or hard is it for the end users to switch and use another product? * Does it require a large seed capital to enter this industry? * Do entries to this industry regulated by government? * How hard is it to gain access to the distribution...
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...Nakia Hart MBA 640 Dr. Turnquist Porters 5 forces Analysis of Casino Industry Internal Rivalry (High significance) In Las Vegas, the casino-resort market has become hyper-competitive, especially since all of the hotel-casinos rely heavily on room revenues and convention guests. Currently, the supply of hotel rooms far outweighs the demand for them, pushing room rates down to unprofitable levels. Entry and Exit (High significance) Entry and exit forces are probably the most restricting aspects of the competitive landscape in the casino-resort industry. The casino-resort industry is highly regulated and highly taxed. Government officials play a crucial role in the success or failure of casino-resorts. It is impossible to enter the industry without a gaming license and, in some cases, a land concession. Buyer Power (Moderate significance) As evidenced by the Las Vegas market, buyers have some power in the casino-resort industry and are capable of exerting downward pressure on room rates. Furthermore, buyer preferences are considered in determining attractions and other amenities, such as entertainment shows and restaurants. Every casino-resort company is constantly trying to out-do its competitors with new developments and offerings. Supplier Power (Low significance) Suppliers in the casino-resort industry have extremely limited power, as they reside in a highly competitive market place in which price is determined by supply and demand. Obtaining supplies...
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...Porter 5 forces of Universal Music Group Rivalry within Music Industry According to Universal’s last full-year results of recorded music market, for FY 2014, we can conclude that the music industry is concentrated, the market share of which is held by three largest firms. They are Universal Music, Sony Music and Warner Music separately. Hence, there are not many other firms except these three giants that can have a significant market share. Although the competition is remain intensive among these three firms, Universal Music has achieved the highest revenue of the total recorded music market in the world. [pic] Reference: http://www.musicbusinessworldwide.com/whos-more-powerful-universal-music-or-sonyatv/ Bargaining power of Suppliers In Music Industry, the suppliers are artists, who have signed a contract with a music company. In the beginning, these artists are not famous, they just need to cooperate with music companies and rely on the packaging and sensationalization. Hence, they do not have much leverage with UMG. However, once these artists have became celebrities or even giant stars, they will gain more reputation and power to bargain with UMG. After all, in this moment, they can use their own fame to achieve revenues without UMG. Bargaining power of Buyers Power Buyers can be classify into two groups: one is mass consumers, another is retailers. Mass consumers command a high bargaining power. Although there are a minority of famous firms...
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...professional services and application management services, with IMB solutions, which leverage industry and business-process expertise while integrating the industry-leading portfolio of IBM and strategic partners, to define the upper end of client-valued services. 3. Software * Consists primarily of middleware and operating systems software 4. Systems and Technology * Provides clients with business solutions requiring advanced computing power and storage capabilities. 5. Global Financing * facilitates clients’ acquisition of IBM systems, software and services Main IBM Competitors: Hewlett-Packard HP operations are organized into seven business segments: 1. Personal Systems Group (‘‘PSG’’) Is a hydride across all IBM SBU 2. Services The Strategic group competing with IBM Global Business Services SBU 3. Imaging and Printing Group (‘‘IPG’’) 4. Enterprise Servers, Storage and Networking (‘‘ESSN’’) The Strategic group competing with IBM System and Technology SBU 5. HP Software The Strategic group competing with IBM Software SBU 6. HP Financial Services (‘‘HPFS’’) The Strategic group competing with IBM...
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...As the largest electric power company in the United States, Duke Energy is at the forefront of new beginnings. We're investing in more efficient power plants, renewable energy, smart grid technologies, and innovative energy efficiency programs and services. But while Duke Energy is a company that knows where it is going, we're also one that never forgets the people and the events that got us where we are today. The Beginning: Growing the South's Economy Duke Energy's history began with the Catawba Power Company in the early 1900s. Three visionaries, Dr. W. Gill Wylie, James Buchanan Duke and William States Lee, founded the company to spur economic revival of the Carolina countryside. They felt the South's heavy dependence on agriculture was prohibiting growth of other industries. By developing an integrated electric system of hydro-powered generating stations, they envisioned linking customers by transmission lines – and creating new opportunities for economic growth. They took the first big step toward this goal in 1904 when the first power plant, Catawba Hydro Station in South Carolina, began providing electricity to Victoria Cotton Mills in Rock Hill, S.C. Over the next several years, the company's hydroelectric fleet continued to grow to serve not only commercial textile mills, but the region's growing appetite for the conveniences that electricity could provide. The company's leaders also felt strongly about giving back to the communities they served. Their...
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...Intensity of Rivalry The wireless telecommunications industry consists of mainly three major players that control 96.6% of the Canadian market share. There are however small players with less than 5% of the market share that have been putting pressure on the other companies with intense promotional tactics. The products provided in the industry are fairly similar across all companies and the industry is anticipated to grow at a rate of 2.3% across 5 years. Considering these facts, the competitors threat would be Medium. Threat of New Entrants The entry barriers new companies will have to enter the industry mainly dictate the threat of new entrants. High market share that is dictated by the top 3 companies poses as a main challenge for new entrants to the market, well established companies in the industry carry a brand identity that new entrants would have trouble capturing. High costs are another barrier that has reduced the threat of new entrants as licensing and capital costs for a new company would be very high. Overall, the threat of new entrants in the industry would be Low. Bargaining Power of Suppliers Suppliers play a role in the industry as providers of major goods like handsets that are subsidized for the carriers for their customers. Prices in that regard remain relatively similar across the competition. Companies maintain relationships with upstream suppliers to remain successful in the industry, which does gives suppliers some power in the industry. Other...
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...National Economy In 2012, Ghana’s economy witnessed a GDP growth of 7.1%. A budget deficit of GH¢8.7 billion was recorded (as revenue amounted to GH¢16.1 billion against an expenditure of GH¢24.8 billion in 2012) resulting in an overall fiscal deficit equivalent to 12.0% of GDP, against a target deficit of 6.7% of GDP. The deficit was financed mainly from domestic sources. The stock of public debt stood at GH33.5 billion,46.7% of GDP in 2012 increasing by 40% over that of 2011.Deterioration in the trade balance and an overall balance of payments that worsened, reversing theGH¢546.2 million surplus in 2011 to GH¢1.2 billion deficit had volatility implications for the Ghanaian currency. The Cedi eventually depreciated by17.5% in 2012.The stabilization efforts by the Central Bank saw a cumulative increase in the policy rate by 250basis points reaching 15% by June of 2012.Money market rates responded in same direction– 91-day Treasury bill rose from 10.7% in December2011 to 22.4% in June 2012 and ended the year at 23.1%. Rates of other instruments moved largely in similar trajectory. Growth in monetary aggregates moderated in2012 as broad money (M2+) grew by 24.3%compared to 33.2% the previous year. Credit to the private sector by deposit taking banks grew by 34.1% in 2012 compared to 26.3% in 2011. A positive GDP growth implies that MTN had In 2013, Bank of Ghana has maintained its policy rate at 16% citing a balanced economic growth. Ghana’s inflation rate in August 2013 fell...
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...Porter's Five Forces is a strategic tool that is used among many managers today as to take important decisions. What this tool does is analyse components of the company's micro environment and with that information that it gathers will know where the strength or weaknesses of the company's competitive position lies. The analysis that is to be done is on supplier power, buyer power, competitive rivalry, threat of substitution and threat of new entry. Together these forces determine the profitability of the company because it is these forces that determine that prices which will be charged. By analysing supplier power we would be assessing how easy it would be for our suppliers to raise their prices, and hence lower our profits. Suppliers are the once that provide us with the raw materials that we need to produce our product and thus giving them some power over the firm. If the raw material that the supplier sells is scarce, and no easily found, then this would enhance the power that they have over the company and could mean that they could raise their prices when they would see fit. If we were to see competitive firms competing for the resource that the supplier supplies then this would put the supplier in even greater power over those firms. In our case, Mdina Glass uses several raw materials that can be found in many destinations. The main raw material that is used is sand, but not just any sand, silica sand. Other raw materials include limestone, soda ash and other...
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...Strategy There are many routes that MPM could take in expanding into the oil and gas sector, but there are also several factors that must be taken into consideration for short and long-term strategies. Factors ranging from industry potential to weather conditions will play a huge role in the expansion and profitability of the firm. There must also be an abandonment option for such a major risk so that losses can be minimized in case the new venture is not as profitable as expected. When evaluating the memo requesting permission to buy the two Australian-flagged vessels, it seems that spending that sum of money may not be a good investment if it still puts MPM at the bottom of the Australian sophisticated market. Seeing as demand will grow for the increasingly sophisticated vessels, they would be a much better long-term investment in terms of resale value as well as income from its use. These two general utility vessels would only earn 3-5000 each. If one AHTC was purchased for a similar price (26-28 million) as the two utility vessels, it would command 15-22000 per day. So, we can see that more sophisticated vessels will more than double the stream of income and also have higher resale values in the future. With oil exploration about to begin in a few years in Indonesia, MPM could assist other foreign companies to operate in Indonesia. This would build relationships and help in getting business from them in other regions as the vessel inventory expands. These strategic partnerships...
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...1. Barriers to Entrants The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: Existing loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources High costs of switching companies Government restrictions or legislation Case study: There are thousands of oil and oil services companies throughout the world, but the barriers to enter this industry are enough to scare away all but the serious companies. Barriers can vary depending on the area of the market in which the company is situated. For example, some types of pumping trucks needed at well sites cost more than $1 million each. Other areas of the oil business require highly specialized workers to operate the equipment and to make key drilling decisions. Companies in industries such as these have higher barriers to entry than ones that are simply offering drilling services or support services. Having ample cash is another barrier - a company had better have deep pockets to take on the existing oil companies. 2. Supplier Power This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power: There...
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...Eric Volz My product is a workout machine that is used for weight training like the Bowflex, Gold Gym’s XRS, and Body-Solid Double Stack Gym, and this product allows people to workout at home; instead of, people having to fight over workout equipment at a gym. For the model: 1. Bargaining power of buyers is relatively high for a couples reasons, and one would be that there are only a few vendors of these types of workout machines that are relatively priced in the same range, so the buyer could have the power to bargain on the price a little bit and pick between the machine he or she likes the best. The importance of each buyer to the new vendor when entering this market also allows the buyer of a workout machine to have some leverage on price over the vendor because not a lot of people are going out buying machines like these on a daily basis, so the select people that are exercise conscious and want it in the convenience of their own home isn’t a too wide range of people. 2. Bargaining power of suppliers is high in making the machines for the company because there aren’t too many manufacturers out there making these types of machines, or suppliers willing to take on making such as high priced machine without having to make a high starting price to start production, so the supplier can dictate the prices, thus raising them whenever they feel the need. 3. Threat of new entrants is relatively medium because the startup costs to produce the expensive machines and having large...
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