Class #2: EXTERNAL ENVIRONMENTAL ANALYSIS - LOBLAW 1. Please give a summary of the case / problem statement • Threat of new entry in industry‚ company thinks they may need to take some action to either prevent this or stay competitive 2. What environmental components are relevant for Loblaw’s external analysis? Why? • Industry: Grocery Retail • Technological- new technologies (RFID‚ ECCNet) o Process management‚ integration of store
Premium Competition Barriers to entry Supermarket
Formulas: BDI: CDI: Chi Square: (o-e)2/e (answer>chi 2 given= significant) Formulas: BDI: CDI: Chi Square: (o-e)2/e (answer>chi 2 given= significant) Economic Value: Price of Substitute + Cost saving for the customer during the same time+ Revenue increase for the customer during the same time Break Even Quantity= FC /(P - VC) Break Even Revenue=FC/[(R-COGS)/ R] PED=% Change in Quantity demanded/% Change in Price CPM= cost/(% watching x
Premium Brand Marketing Strategic management
buyers‚ establishing alliances with trainers and raising market entry barriers. 2. What role did information systems play in your answer to question 1? Answer: Information systems play a significant role in BOSU’s success. BOSU uses database for email and postal correspondence so that it can create and maintain a close relationship with customers. This information system helps BOSU lock in customers‚ establish alliances‚ raise market entry barriers and reduce costs. By using Fitness Quest of trainer
Premium Barriers to entry Competition Marketing
Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. 78 Harvard Business Review | January 2008 | hbr.org STRATEGY STRATEGY by Michael E. Porter Peter Crowther SHAPE THE FIVE COMPETITIVE FORCES THAT Editor’s Note: In 1979‚ Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor‚ Michael E. Porter
Premium Barriers to entry Competition Switching barriers
Applying Porter’s Five Forces Model: The Metal Container Industry The metal container industry historically has been characterized by relatively low growth‚ intense competition‚ and unattractive levels of profitability. During the 1980s‚ this industry was negatively affected by such factors as further consolidation of soft drink bottlers and a strong trend toward substitution by many types of plastic packaging. The underlying reasons for the slow growth and low profitability of the metal container
Premium Barriers to entry
Profound understanding of the competitive environment is critical ingredient of a successful strategy. It helps the industry to uncover opportunities and threats‚ provides information about the nature of competition‚ reveals options for collaboration‚ and helps us design more effective strategies. Two types of environment - Business or general or macro environment -Industry environment The business environment of the firm consist of all the external influences that affects its decision
Premium Barriers to entry Competition Porter five forces analysis
An oligopoly is a market form in which an industry is dominated by a small number of firms. The proposition was based primarily in the fact that there are a very small number of electricity distribution firms in the west bank with high barriers to entry as there is a high cost of production. To prove this hypothesis‚ I must attempt to correlate the supermarkets with characteristics of an oligopoly. Those are: Number of firms: few. Products are slightly differentiated (as in groceries). Size of
Premium Monopoly Perfect competition Competition
New Entrants: Barriers to Entry Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages independent of scale Government policy Expected retaliation Barriers to Entry Economies of Scale Marginal improvements in efficiency that a firm experiences as it incrementally increases its size Factors (advantages and disadvantages) related to large- and small-scale entry Flexibility in pricing
Premium Strategic management Barriers to entry Marketing
Porter’s Five Forces: Travel Agency : Industry Rivalry : Highly Fragmented Industry with Intense Rivalry Highly Fragmented Industry. Organized players would barely have 15-20% of the marketplace Most of organized players are present in metros & mini-metros Large disposable incomes in towns like Lucknow‚ Jaipur‚ Coimbatore etc. serviced by family run unorganized players Industry rivalry is intense but not cutthroat Rivalry Intense because of low switching costs‚ low levels of product differentiation
Premium Strategic management Barriers to entry Management
Analysis. In his book Competitive Strategy‚ Harvard professor Michael Porter describes five forces affecting the profitability of companies. These are the five forces he noted: 1. Intensity of rivalry amongst existing competitors 2. Threat of entry by new competitors 3. Pressure from substitute products 4. Bargaining power of buyers (customers) 5. Bargaining power of suppliers These five forces‚ taken together‚ give us insight into a company’s competitive position‚ and its
Premium Barriers to entry Strategic management Cost