...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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...Five Forces Analysis of Video Game Console Industry Threat of Substitutes: The main substitute for a video game console would be a personal computer. They can both be used for playing different types of video games and be used for entertainment. The threat of this substitute edging out video game consoles is very low, because they are not completely similar. If anything, video game consoles are edging out personal computers in the gaming industry. The threat of substitutes in the video game is not very high. In 2008, this was not a very strong force in the video game industry. Threat of New Entrants: In 2008, the threat of new entrants was not very high. Sony’s Playstation, Microsoft’s Xbox, and Nintendo’s gaming systems were very well established names in the industry. The brand identities of these products were so strong that it would be very difficult for a new player to enter the game at this point in time. Many years prior to 2008 this was not the case. Many new companies tried to enter the market, some, like Microsoft, succeeded, others, like Sega, did not fare as well. In 2008, the Threat of new entrants, is not a strong force in this industry. The cost required to develop and manufacture a product that could be a decent a competitor in this market is too great for a non-established company in this industry to be able to compete. The technology that is needed to be successful at this point is too advanced for new competitors to achieve. Although at times the threat...
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...Porter’s 5 Forces Analysis = Suppliers, Customers, New Entrants, Substitute Products, Competitors What is Porter’s 5 Forces Analysis? Porter’s 5 forces analysis represents the competitive environment of the firm. It is a strategic foresight to avoid putting the competitive edge at risk and ensure the profitability of products on a long term. For the company this vision is quite important because the firm is able to direct its innovations in terms of choice of strategies and investments. The profitability of businesses within the industrial structure depends on the following forces: Competitive rivalry within the industry; Threats of new entrants; Threats of substitutes products; Bargaining power of customers; Bargaining power of suppliers. Golden Rules 6th force = Often the model is adjusted with a 6th force, the public authorities. This is important because the law and the norms can influence each of Porter’s 5 forces. Key factors for success = The key success factors of the environment have to be identified. To have a competitive advantage some strategic elements should be controlled. Threats of new entrants Public Authorities Bargaining power of suppliers Competitive rivalry within the industry Bargaining power of customers Threats of substitute products © Copyright 2008 LUXINNOVATION G.I.E., The National Agency for Innovation and Research in Luxembourg 1/2 Porter’s 5 Forces Analysis = Suppliers, Customers, New Entrants, Substitute Products...
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...Puma is one of the key sportswear firms globally that is involved in segments like sports clothing, footwear, and lifestyle products, where its core capabilities are in the field of manufacturing, designing, marketing and distribution of its products. The company has evolved over number of years to become € 2,738.8 million turnover firm in 2008 (FAME, 2009), however its roots can be traced back to the modest beginnings in the firm Gebruder Dassler Schuhfabrik by Rudi and Adi Dassler created in 1924, which later split into Puma and Adidas in 1948 (Keynote, 2009). Porter’s Five Forces: Porter’s five forces have been identified as the key competitive forces that define industry structure that is relevant to the business of the firm and therefore is highlighted as micro business environment analysis of the firm (Lynch, 2003). The implementation of the tool has been undertaken for Puma as follows: • Bargaining Power of Suppliers is low as Puma is one of the vertically integrated firms therefore making its own departments suppliers and distributors of its products, while raw material producers offer low differentiation therefore also have very low bargaining power. • Bargaining Power of Buyers is medium to high as there are low switching costs between different brands therefore allowing opportunity to customers to try different firms for their wardrobe. However, the strong product portfolio and the price mix of Puma means that it enjoys a degree of customer loyalty which...
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...replacement windows and glazing systems. While 40% of the float used for buildings are used for new construction, 40% is used for refurbishment and 20% is used for interior design. Automotive market demands 7% of the total supply. Lastly 10% of the flat glass are used in special applications, solar energy being the most notable one. Vision: To be a fast growing global flat glass company with its strong brands and innovative solutions Strategy: Globalization (Organic & Inorganic) Profitable and Fast Growth Beyond Regional Leadership Wide Product Portfolio with Value Added Products Product Innovation and Advanced R&D Effective Total Cost Management Environment & Sustainability Market & Customer Focus PORTER’S 5 FORCES ANALYSIS FOR TRAKYA CAM SAN. A.Ş. Threat of new entrants-Low Pressure Entry barriers are relatively high for the flat glass industry due to the high cost of manufacturing investment. There is only China threat for the sector which effectuate only 8% of European sector. Four companies meet majority of the demand in the world. In terms of high quality float glass alone, the industry is relatively consolidated, with four companies accounting for the majority of glass capacity. Of the four companies two of them are from Japan, namely, Asahi Glass and NSG Group, Saint-Gobain is based in France and Guardian is the American producer. Şişecam’s flat glass arm Trakya Cam has a total...
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...1. Threat of New Entrants. The average person can't come along and start up a bank, but there are services, such as internet bill payment, on which entrepreneurs can capitalize. Banks are fearful of being squeezed out of the payments business, because it is a good source of fee-based revenue. Another trend that poses a threat is companies offering other financial services. What would it take for an insurance company to start offering mortgage and loan services? Not much. Also, when analyzing a regional bank, remember that the possibility of a mega bank entering into the market poses a real threat. 2. Power of Suppliers. The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human capital does. If a talented individual is working in a smaller regional bank, there is the chance that person will be enticed away by bigger banks, investment firms, etc. 3. Power of Buyers. The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank. On the other hand, large corporate clients have banks wrapped around their little fingers. Financial...
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...است قدیمی که از واژه آلمانی bank به معنای نوعی شرکت اخذ و رواج یافته و شاید هم از کلمه banco که یک لغت ایتالیایی و به معنای نیمکت صرافان بکار برده می شد اشتقاق یافته است . در هر حال بانک یا همان موسسات صرافی آن روز با همان نام و روش کهن به تدریج سازمان یافته و مرکز کلیه فعالیت های پولی و اعتباری بانک های امروزی شده اند. اولین بانکی که در ایران تاسیس شد « بانک جدید شرق » بود که مرکزش در لندن و حوزه عملیاتیش مناطق جنوبی آسیا بود این بانک بدون تحصیل هیچگونه امتیازی در سال 1266 شمسی (1888 میلادی ) در شمال شرقی میدان توپخانه در محل بانک بازرگانی ( تجارت فعلی ) شروع به فعالیت کرد و برای جلب مشتریان در شروع فعالیت به حسابجاری معادل 2/5% و به حساب سپرده های ثابت به مدت 6ماه 4% و یکسال 6% سود می داد.بانک با این اقدام خود در بازار پولی 12% از نرخ بهره را پایین آورد و برای اولین بار اقدام به انتشار نوعی پول کاغذی به صورت حواله عهده خرانه بانک برای مبالغ بیش از 5 قران و قابل پرداخت در وجه حامل نمود و در سال 1267 در مقابل دریافت 20000 لیره انگلیسی کلیه شعب و اثاثیه بانک را به بانک شاهی واگذار نمود . اهداف و وظایف بانک در آغاز فعالیت بانکها چهار وظیفه اساسی داشتند : 1- تشکیل انواع پول ها متعلق به کشور های مختلف جهان در سیستم فلزی ( طلا و نقره ) 2-تعیین وزن و عیار هر پول 3-تعیین نسبت برابری پول ها برای مبادله 4-نگهداری پول های فلزی اشخاص ( طلا و نقره ) در محل های امن وظائف و خدمات بانک های تجاری ( خصوصی یا دولتی ) باستثنا بانکهای تخصصی بصورت ساده بقرار زیر است : 1- قبول سپرده ( دیداری _ مدت دار ) یا تجهیز منابع پولی 2- ایجاد تسهیلات ( وام _ اعتبار...
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...issues facing a firm. In essence, any industry analysis requires us to think about how broadly we should define the scope of the industry. Please be sure to identify the boundary of the industry. In preparing your case for class discussion, please ensure you have read chapter two from Dess Lumpkin and Eisner, 2012, which is available on Blackboard. Further detail is available in Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86 (1), 78-93, which can be found via the library catalogue. Please focus your notes on trying to apply each of the five forces mentioned in this article to the case study. Look at what contributes to each of the five forces and try to identify or interpret data and evidence from the case to make a judgment about each of these. Avoid merely describing the case by ensuring you use the model as a framework for analysis; then for each component of the model, evaluate whether that ‘force’ would present difficulty for a firm competing in the industry. Finally, you should consider what the framework as a whole tells us about the industry and implications for firms. You may use the worksheet below to help you structure your notes if you wish. Please note: in real life, as in the case, we often don’t have full information so have to make ‘best assessments’ based on the data we have. If you find there are no data to address a factor, leave it blank. Use the Five Forces framework to assess the relative strength in each...
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...Apple Inc. specialises in development, design and marketing of computers, portable-digital music players and other didgital devices including iPad’s and mobile devices (IPhone). Apple Inc. are also involved in selling multiple supporting software, digital content, third party applications, networking software and services. Apple Inc. predominantly operate from their U.S headquarters in Cupertino, California and involves 72,800 employees (Forbes, 2013). Revenue for APPL in 2013 has risen from $155.97bn in 2012 to $170.87bn in 2013 (Market watch, 2013) which is a 9.6% increase. The objective of the Porter’s 5 forces model is to identify and elucidate the current levels of competition existing with a market, by examining what the 5 forces involve. ‘The model therefore provides a detailed and nuanced picture of the industry and to make an in-depth analysis with an idea of what factors one can try to influence in order to create optimal conditions for one’s business and the industry” (P.K. Faarup, P113, 2010). Threat of new entrants High levels of competition currently being practiced in the PC and mobile industry make it difficult for potential competitors to enter the market. Unlike many companies Apple inc. has secured brand loyalty from customers by focusing on product innovation and, research and development. Another way apple has secured its brand loyalty is by creating an emotional connection with consumers by embracing the internet and social media to voice what the...
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...Bui Thi Huong Giang – ID# 442309 Nguyen My Hanh – ID# 442321 Pham Tra My – ID# 442329 PORTER’S FIVE FORCES INDUSTRY ANALYSIS COCA-COLA COMPANY 1. Threat of New Entrants: Medium - Coca-Cola is considered not only a beverage company but also a brand, so they own a significant market share providing Coca-Cola the ability to earn economy of scale that help maintain their total costs at a minimum level, which will create a quite difficult barrier for new beverages to enter the market. - As Coca-Cola has been founded and developed for a very long time, and now their products are considered to be one of the most famous and popular beverages around the world. With a huge number of Coca-Cola loyal customers who are not very likely to try a new brand, it will make things very hard for new businesses to enter the market. - As the prices of products are quite similar, the entrant of new competitors coming into the beverage industry are relatively easy because there is no consumer switching cost, consumers will not have to bear any additional cost when they switch to a new products, which will level the playing field and bring worries to Coca-Cola. 2. Threats of Substitute Products: High - As the prices of beverage products from different companies are at the same level so with the same amount of money customers pay for a Coca-Cola drink, they will have numerous other choices such as: Pepsi, Mountain Dew, 7Up, Dr. Pepper, or other types of drinks like Starbucks, Dunkin’...
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...Esmir Hadzic 661035592 Intro to Management 2/4/14 Five Forces Analysis of the Video Game Industry As in every industry, there are five competitive forces that determine the intensity of competition between the different players. These competitive forces are; the threat of entry of a new company in the industry, the threat of substitution by another product, the bargaining power of the buyers, the bargaining power of the suppliers, and rivalry among currently existing competitors. These competitive forces are easily seen in the video game industry, as there is already immense competition in the industry due to the similarities between the few major companies at play. Sony, Nintendo, and Microsoft are the three large players in the present day video game industry. Sony Computer Entertainment Inc. has been a dominant company in the industry for over a decade with the PlayStation 1 and PlayStation 2 platforms; however, it is struggling to stay at the helm of the industry due to the presence of these competitive forces. The threat of entry of a new company in the video game industry is a relatively weak competitive force for Sony. The video game industry is already dominated by three major players (Sony, Nintendo, and Microsoft), thus the possibility of a new entrant in the industry is very low. Nintendo was established well before Sony as a major player, and Microsoft came into the industry in 2001 with the original Xbox. When Sony came in with the PlayStation 1, they...
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...The FICCI-KPMG Indian Media and Entertainment Industry Report 2013 published a record 16% growth over the previous The report also states that the games industry in India will grow at a 22% CAGR to cross Rs. 4000 crore ($776m) by 2017. That means the video games industry in India will almost triple itself in 5 years.year, to Rs.1500 crore (Rs. 15 billion / $277 million). Sweet numbers. The console segment will overall grow at a rate of 19% CAGR, to reach Rs. 1900 crore ($351m) by 2017. The report is yet to take in other future factors such as the possible success/failure of PS4 and the upcoming Xbox. On the other hand, the Internet & Mobile Association of India estimates that 50% of India’s mobile users have access to gaming content on their devices. These numbers are expected to rise amid increased penetration of smartphones and tablets. Mobile gaming revenues in India typically have come through telecom operator partnerships, but this is expected to change by 2014, the report states, when sources such as app-stores and online marketplaces will dominate mobile revenues. This despite the fact that operators are now offering up to 70% revenue share to game publishers. As expected, the big challenge for game publishers is monetisation, as a chunk of mobile game revenue in India comes from ad-funded free-to-play games. This also might be due to the fact of limited high-speed connectivity of smartphones and tablets alike, and limited access to credit cards. On a positive...
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...(as some background may be necessary) Our Mission & Story BioLite develops and manufactures advanced energy products that make cooking with wood as clean safe and easy as modern fuels while also providing electricity to charge cell phones and LED lights off-grid. We feel a strong sense of responsibility not just to develop products that work well but also to create businesses that make a positive contribution to the global community. We believe in market-based approaches to poverty alleviation. By creating solutions that are effective, affordable and desirable to the end user, we can reach more people more effectively. Sales of the CampStove help to support the one-time market establishment costs for the HomeStove. This is not charity, or a one-for-one model, but simply the capital needed to incubate self-sustained energy access for the people who need it most. The BioLite team together has over 30 years of product development experience and holds more than 30 utility patents. Previous clients include OXO, Johnson & Johnson, Hewlett Packard, Nike, Lego, Church and Dwight, Pepsi, GE, Lockheed Martin, Boeing, Motorola, and Bosch. More than 90% of our developed products have gone on to be successful in the market. at TEDx Montreal http://www.youtube.com/watch?feature=player_embedded&v=J3Zsj4Lfs_o Not yet sufficiently lucrative to draw in big competitors? LOW Barriers to Entry Government / International Organisations support with incentive / patronage / funding: •“Global Alliance...
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...1) Aims: To carry out critical analysis, evaluation and discussion on the strategies for an organisation to remain its competitiveness in its industry. 2) Students will work in group of 4 or 5 students a group. Therefore, this is a group effort. Teamwork and coordination are highly expected. Reference books for sources of information are necessary. 3) Select a public listed company or organisation from Bursa Malaysia. Identify one (1) or two (2) products (maximum) to be discussed in this assignment. 4) Prior to detailed write-up, students are required to submit proposal on their choices of the company and product(s) concerned to seek approval from the tutor concerned. This is to identify its suitability and to avoid duplicating. a) The proposal shall have brief description on the following to be assessed: i) The industry and its product(s) to be studied, ii) Its supply chain, competitors, etc., iii) List of potential strategies involved, etc. b) Hence, as a proposal, it shall NOT have more than two (2) pages. The format should be in Times New Roman font and of size 12, line spacing of 1.5 with the normal page margin on A4 paper. c) Proposal shall be submitted, latest on Week 4, for approval. Students are advised to submit earlier to avoid rejection due to some reasons. For instance, selection is on first come first approve basis. i) If the proposal is not approved as mentioned above, the group concerned is required to submit a fresh proposal. Decision and approval...
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...The Bottled Water Industry Threat of entry of new competitors is low. Firstly, the competitors that currently exist are large, dominating companies who already own a huge market share of the industry. New entrants attempting to enter the market will have compete with established brands such as Coca-Cola, PepsiCo, and Nestle. These brands have decades of experience in the food & beverage industry, have developed brand recognition & loyalty and have achieved low-cost production and distribution capabilities that cannot be easily matched. Secondly, it is expensive to initially develop the infrastructure to produce the product. The case states that prices for bottle-filling lines range from $125,000 to over $100 million, not to mention the costs associated with “source certification, road grading, and installation of pumping equipment …” which require approximately $300,000 worth of investment. Threat of substitute products/services is high. Numerous bottled and non-bottled products that can easily substitute bottled water. The main factor that differentiates bottled water from other soft drinks is that it caters to a health-conscious market because it has no sugar and no calories. However, today, there are several healthy soft drinks that are ‘zero-sugar added’, ‘zero-calorie’ alternatives to water. Coke zero, crystal light powders, diet sodas, zero-calorie energy drinks, etc. are just some examples. Tap water is also a substitute product because many people simply trust the...
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