...THE FIVE FORCES INDUSTRY COMPETITORS. Rivalries naturally develop between companies competing in the same market. Competitors use means such as advertising, introducing new products, more attractive customer service and warranties, and price competition to enhance their standing and market share in a specific industry. To Porter, the intensity of this rivalry is the result of factors like equally balanced companies, slow growth within an industry, high fixed costs, lack of product differentiation, overcapacity and price-cutting, diverse competitors, high-stakes investment, and the high risk of industry exit. There are also market entry barriers. PRESSURE FROM SUBSTITUTE PRODUCTS. Substitute products are the natural result of industry competition, but they place a limit on profitability within the industry. A substitute product involves the search for a product that can do the same function as the product the industry already produces. Porter uses the example of security brokers, who increasingly face substitutes in the form of real estate, money-market funds, and insurance. Substitute products take on added importance as their availability increases. BARGAINING POWER OF SUPPLIERS. Suppliers have a great deal of influence over an industry as they affect price increases and product quality. A supplier group exerts even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers...
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...[pic] Keuka College Bachelor of Science in Management List 1. Develop a Porter 5-forces model of the casino industry. Make sure you discuss each of the five forces in a separate paragraph or section 3 2. How are the gambling companies in Las Vegas responding to the changes in the industry structure and the increased competition . 21 3. How have the casinos in Atlantic City tried to compete with Las Vegas? What threats do they face . 23 Chen Huisheng 323945 Lin Weijie 324066 1.Develop a Porter 5-forces model of the casino industry. Make sure you discuss each of the five forces in a separate paragraph or section. For purposes of this case, we will define the casino industry as including full-service, diverse entertainment (i.e. traditional) casinos of Las Vegas and Atlantic City, and treat other gambling alternatives (e.g. Native American casinos, riverboat gambling, etc.) as substitutes. When discussing each of the five forces, be sure to consider each of the factors relevant to each of these five forces as we discussed in class. In terms of Porter’s 5 forces analysis, the bargaining power of suppliers is weak because of the fact that casinos basically provide their own services with internal resources, such as employees properly trained in various casino games. The bargaining power of customers is strong, especially because even a slight change in the demand for casino services could directly impact the revenues of the industry...
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...The competitive forces model focuses on five forces that shape competition within an industry. These five forces are: the risk of entry by potential competitors, the intensity of rivalry among established companies within an industry, the bargaining power of buyers, the bargaining power of suppliers, and the closeness of substitutes to an industry’s products. The threat of new entrants in the airline industry is low. In this time of economic distress it is tough to find an institution willing to loan the necessary capital it would take to start an airline. Without a loan it is nearly impossible to start up an airline company and therefore there are not many new companies entering the market. Even if a company could surpass these economic barriers it would find it hard to compete with airlines that have established brand recognition. These solid brands in the airline industry are able to offer lower prices and better incentives than an incoming airline and these economies of scale increase entrant barriers. Also, the respectable number of established airlines that have made up the industry have a strong hold on airports hubs. These hubs are crucial to bringing and taking customers to and from airports. An entrant into the airline industry may not have these privileges which would stall their business. A greater threat to the airline industry would be substitutes. Substitutes are a medium threat to the airline industry. Recently oil prices have fallen below $30 a barrel and...
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...Internal Analysis Earlier we explained differences in firm performance as being a function of their external environment. However, this is only part of the story. Obviously, each firm has some unique aspects. How can these be analyzed to understand differences in firm performance? Resources and Capabilities. Economics generally models firms as generic black boxes that transform inputs into outputs in an efficient manner. Edith Penrose (1950) is generally credited with being the first person to model firms as unique bundles of resources. Some individuals like to make distinctions between resources, what companies have, versus capabilities, things companies can do. A classic example might be my personal computer. As a resource it is more powerful than the original computer on the Space Shuttle, however, I could not land the Space Shuttle with it. So in this case I have a superior resource but an inferior capability. Resources and capabilities can take many different forms. Literally anything an organization possesses can be considered a resource. Examples include financial resources, plants, equipment, technology, reputation, brands, and organizational expertise. In short there is no potential constraint on what can be considered a firm's resources or capabilities. VRIO Analysis Given that almost anything a firm possesses can be considered a resource or capability how should you attempt to narrow down the ones that explain why firm performance differs? In order to lead to a sustainable...
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...Perform a detailed Porter's Five Forces analysis a) Buyer Power: Customers have low bargaining power since they typically can't bargain for the price of their coffee but there are numerous coffee shops in the area. Overall there is high buyer power. b) Supplier Power: low because there are many suppliers available giving us multiple options to chose from c) Threat of Substitutes: High since there are multiple coffee shops in Winston Salem offering our primary product: coffee. Starbucks, Crankies, Panera Bread, Gas stations... d) Rivalry Among Existing Competitors: High, refer to c. e) Threat of New Entrants: High since start up costs for coffee shops are relatively low. Analysing this from the perspective of our cafe, given the location - Near the school, on Deacon Blvd and near the stadium here is what I think Buyer Power - Low, the population visiting this area is high, there are not many coffee shops around. Supplier power - Our suppliers are the bean suppliers, we still want to go and get stock from those who sold the same variety as in our grandpa's age. We may not have a lot of option ?! Threat of substitues - NC being a warmer place, there is always treat from substitues like Soda and other cold drinks. There is a Ihop and a few other gas stations close by. Rivalary - Hmmm ... lots but not in that area. We are in a relatively safe location, but the cafe should not run out of business bcos of my incompetency :( Threat of new entrants - This...
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...2.3 Porter’s 5 forces Model 2.3.1 Threat of new entrants The apparel industry has very low entry barriers. Entering the market does not require huge amount of capital. The setup can be as simple as a person selling his own designed apparel online which only required relatively low skills level. In fact, the fashion retailing is a diversified market with numerous single shop retailers, local chain stores, international fashion chain stores, online shop… etc. However, if we focus on the fashion retail chain with economy of scale in production and distribution, that would create significant barrier for entry. Moreover, brand identification and production differentiation also set a barrier for entrance. 2.3.2 Threat of substitute products or services The threat of substitute products in the fashion retailing is very high. Customer can buy another piece of garment in turn satisfying the same need. The competitors can even copy the “hit of the season” easily, customer can find similar products in the market with different price positions. The switching cost on the substitute apparel is also very low. What’s more, many female considered shopping as leisure activities. Retailers also lower the switching cost by providing online platform for shopping which in turn provide price information to customer as well. To retain their customers, fashion brand has put a lot of resource on building their brand and establish the perceived value on their product (i.e. level of quality...
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...help of information and technology will help companies like Family Dollar conduct their everyday business and make logical decisions when it comes to expanding around the country. How will Family Dollar utilize their existing system to help the business effective and efficient? The development of Family Dollar is its people, the systems they use, and the sustainable business they run. The purpose of writing this paper is to lay out a diagram that will let Family Dollar explore some strategies that are optional to help them nurture the cost added services for the next 5 to 10 years. The most imperative crucial point of the paper will include the Executive Summary and the systematic approach of Family Dollar and their business strategy. This will come from tools such as the general force analysis and detailed SWOT analysis. The general force analysis will determine the external environments and the Porter’s five forces will determine the external industry environment. The SWOT analysis will see the sights of their strengths, weaknesses, opportunities and threats of Family Dollar. The paper will also draw attention to Family Dollar’s strategy and how will bring into line the vision and mission of the company Executive Summary For more than 60 years, Family Dollar has helped and provided their customers with a lot of worth as well as expediency. Their wholesalers are able to keep their cost down which helps them have the savings that benefit the customers. Family is very devoted to...
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...Fractal Offering Julian Ramirez MKT/571 October 25, 2012 Curtis Henson Abstract With the continuous success in recent years that the Penske Group has had with various joint ventures throughout the United States it has been proposed that their presence in Europe needs further technological advancements to better serve the needs of their customers. The purpose of this paper is to explain and to explore several of the key issues that Penske will encounter with a new product offering in Europe. This paper will include the market needs and growths, the competition it faces, a brief SWOT Analysis, definitions, the product identification, and the justification for the chosen product that group B has chosen to introduce to Penske. Marketing Needs Market Growth SWOT Analysis Strengths: * Mobility – Ease of mobility allows users to carry work with them with effortlessness. * Patents – Worldwide patents pending will ensure that technological advances will remain with only our company for the foreseeable future. Weaknesses: * New Company – A new entrant to the automotive market with years of technology experience. Opportunities: * Mainstream – Allow Penske to be a technological pioneer in the United States and in the European markets. * Ground Floor Entry – Permits Penske the assurance that they will be the only company to carry this technology, worldwide. Threats: * G.P.S. – Better technology than GPS because it allows for 24/7...
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...Conduct a SWOT Analysis Belinda Pringle MGT 450 October 31, 2013 Douglas Nelson DSB Enterprises is an Independent Marketing Director (IMD) partnership affiliated with Team National. As an accredited member of the U.S. Chamber of Commerce, (2012), DSB Enterprises is confident in its affiliation with Team National. We offer membership savings by providing reduced costs of products and services in great variety in over 20 different industries while offering an industry leading compensation program for those that choose to market memberships, (bign.com, 2013). SWOT Analysis for DSB Enterprises/Team National. Strengths: Over $35.4 million annual revenue. #1 Rating with D& B. A+ rating with Better Business Bureau. 17 years successful experience in the industry. Unique opportunity to both save and earn. • Tools & supporting personnel available for training. • • Experienced workforce is dedicated to team culture. • • Leads MLM industry with hybrid binary compensation. • • Cost effective support materials. • • Cross-functional lines of communication between IMDs and support personnel. • • Strong partnership with communities as well as IMD collaboration. • • Proactive management team. • • Uniformity between divisions/teams. • • Strong communication between management, IMDs, and Business Exchanges. Weaknesses: MLMs are becoming competitive in modeling compensation plans and payout percentages after TN. U.S. based...
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...innovation,” It is true in the case of Gril-Kleen Corporation. Gril-Kleen, a liquid product, was used to clean kitchen grills. It was developed by two brothers, who had been running restaurant business for a long time and were dissatisfied with grill cleaner products available in the market place. Gril-Kleen was so effective that other restaurant people demanded its sample and then two brothers started selling it. Two brothers founded Gril-Kleen Corporation with the help of one of their restaurant business customers. They were mixing and bottling Gril-Kleen in their spare time and on their days off. With this minimal effort company became so big that it was very difficult to manage and sustain market growth. With the help of Porter’s five forces analysis, we have analysed that it is very easy for new entrant to come in this industry however there is very high competition. We have found that there is very less number of products available which can be used as grill cleaner. Suppliers for manufacturing this product are easily available and buyers don’t have much choice. In addition to this, we have analysed our company on the basis of SWOT analysis, where we found the strength, weaknesses, opportunity and threats for Gril-Kleen Corporation. We have listed out problems of Gril-Kleen Corporation and its causes. Further, we have made two decision criteria and one alternative solution to solve the problem of Gril-Kleen. Our decision criteria are product development and market development...
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...out what is the actual performance of the company. 2. Identify the SWOT Analysis ( Strengths, Weakness, Opportunity and Threat ) of the Company. We should start to investigate what is the issue of the company. Find out what is the company Strengths and Weakness and Analyze the Opportunity and Threats within the company external environment. 3. Analyze your finding – This is where you can find out what is the actual situation of Of the company that you are evaluating and also compare the Strengths and weakness within the company to the external Threat and Opportunity. 4. Identify the corporate level strategy – We need to know what is the company strategy and identify what is their mission, goals and objectives. 5. Identify the business level of strategy – We should identify and analyze the competitive strategy, marketing, cost and general focus. 6. Analyzing Implementations – This is the part of your analysis that require you to Identify and analyze the structure and control systems of the company in order to implement the business strategy. 7. Make a Recommendation – This is a final part of your analysis where in we make a Recommendation base on what we study and with the supporting document of our...
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...Tata Teleservices Limited - Strategic SWOT Analysis Review Summary Tata Teleservices Ltd. (TTL), a part of Tata Group, is engaged in providing telecommunication services to its customers in India. The company offers CDMA and GSM mobile, public booth telephony, wireline services, and wireless desktop phones and data cards. It also provides post-paid Internet, voice portal, roaming, 3-way conferencing, Wi-Fi Internet, group calling, USB modem, calling card, enterprise services, picture messaging, polyphonic ring tones, and news, cricket, and astrology information. TTL provides its services across India's 22 telecom circles by offering communication services for farmers to operate irrigation pumps from remote locations, and person-to-person mobile money transfer services, and operates an online channel. Its key brands include Virgin Mobile, Walky the Photon, and T24. The company is headquartered in Mumbai, Maharashtra, India. GlobalData’s Tata Teleservices Limited - Strategic SWOT Analysis Review provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. The report contains a detailed SWOT analysis information on the company’s key employees, key competitors and major products and services. This up-to-the-minute company report will help you to formulate strategies to drive your business by enabling you to understand your partners, customers and competitors better. Scope - Business description – A detailed description...
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...1) The competitive strategy of the ALLTEL Pavilion is largely focused on differentiation. With no substantial competitors in the geographic region, they are looking to create an “experience” for the audience and thus maintain the sustainability of the venue. They do this primarily through solid Marketing efforts. They are focused on the making the venue and each event as profitable as possible, by making it as highly visible as possible. Working within an established marketing budget of $20,000 per event, the team analyzes demographics, options, and potential ROI in order to make decisions about how to spend this money. Looking beyond each individual event, they are also looking to build visibility for the venue. However, in this case the strategy of differentiation should not work in a vacuum. Many experienced concert attendees may feel that the venue makes like difference to the experience that the performer brings. It is also wise to consider some cost leader strategies as well. This could be done through a more thorough look at ALLTEL’s SWOT analysis. They have an identified strength in how best to utilize available marketing funds and appear to have a solid process in place for overall execution at the events. However, have they adequately analyzed their opportunities? How many events do they secure each year? Are there substantial gaps? Would a marketing spend that exceeds $20,000 yield a greater return with certain events? Are the present ancillary vendors providing...
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...Introduction The porter forces model was first developed in 1979 by Michael .F. Porter of the Harvard as structure for assessing and evaluating the competitive position and power of an organization, the model is grounded on the concept that there are five forces which ascertain the competitive intensity of the market (Porter, 2008). Figure 1.1 shows a diagram of the five forces model, (Flesicher, 2007) Porter’s five forces model is quite useful and it provides a number of benefits , its most contribution is that it's a relevant tool to help organizations find the fundamental structuring components of their given business operation. It is the map showing where the company is and where they hope or want to be (Flesicher, 2007).Further more Schmidt (p.82, 2010) adds that “The model help to identify where the power is in the present business situation, This is important both in understanding the might of a company’s current competitive situation and the power of a position that the company wants to move to.”By understanding where the intensity is, the model can be used to identify the areas of strength, to improve failings and prevent mistakes; also strategic analysts often use the theory to know if new products or services are potentially profitable (Roy, 2011). The five forces model is a tool for analysising the competitive environment as Henry (p.70, 2008) states that “It allows an organization to determine the attractiveness or profit potential of a given market by...
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...Design of Body Slip Angle Observer Based on Nonlinear Tire Model for Electric Vehicle Stabilization Control with In-Wheel Motors Geng Cong, Hori Yoichi (The University of Tokyo) Abstract: Body slip angle is important for electric vehicle stabilization control with in-wheel-motors. However，as sensors to measure body slip angle are very expensive, it needs to estimate β from variables measurable. The most difficult forβestimation is that the strong non-linear characteristics of vehicle, especially non-linear characteristics of tire force makes vehicle model parameters change greatly as vehicle running in nonlinear conditions. This paper proposes an observer based on nonlinear tire model which can describe the tire lateral force in its nonlinear region. Simulation and experimental analysis demonstrate the observer’s effectiveness, especially when the vehicle running in nonlinear cornering regions. Key words: electric vehicle, vehicle stabilization control, body slip angle, nonlinear observer, nonlinear tire model 1. Introduction In recent years, considering environmental protection and energy conservation, electric vehicles (EVs) are intensively developed. Due to the improvement of motor design and control technology, modern configurations are developed for EV. One of the latest configurations is motor-in-wheels, which means motors can be fitted into all the driving wheels of EV independently. For vehicle chassis control, such configuration brings much more advantages...
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