...February 25, 2010 Assignment 2 Porter’s Six Forces Analysis General Retail: Merchandise/Department Stores Prepared by: Yulia Petukhova ID# A30 The department store industry will be analyzed taking department stores as players, individual consumers as buyers, and manufacturers and distributors as the key suppliers. The Rivalry among existing firms High The period from the end of the 20th century up until now has been marked by the consolidation trend in the department store industry, characterized by major acquisitions by a few larger, powerful competitors, greatly intensifying the rivalry among them.9, 13 Since there are only a few of them in the industry, they tend to match each other’s steps in some way or another. After JC Penny introduced itself to Manhattan just a block away from Macy’s, it is only a matter of short time before Kohl’s will finally announce its move into Manhattan as well.10 Slowdown in the industry growth coupled with reduced consumer spending and low switching costs intensifies rivalry even further prompting the market players to differentiate their products by introducing exclusive brands and increasing innovation.3, 15, 17, 19, JC Penny contracted Cindy Crawford to extend her jewelry brand exclusively at their stores, while Macy’s has signed a strategic alliance agreement to become an exclusive retailer of Ellen Tracy branded women’s sportswear in spring 2010...
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...A Business Analysis Play an important role to a business because they use this as a tools enable to determine how well the performance of the company. Without using these tools there is no action can be develop to determine how business improved. Here are the following procedures when we are conducting the Business Analysis. 1. Investigate and Analyze the Company History and Growth – We must investigate the foundation of the company, their structure and growth enable to find 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...
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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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...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 all communities they serve. This is by contributing and the offering of the products they sell. They also support...
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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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...of 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...
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...Micheal Porter projected five forces model in capacity to analyze competitive strategy of the management in any industry. These forces hold an exigent spectrum of importance in the airline industry because of enormous market saturation. The concentration of airline service providers in the market are more than the actual needed demand. Due to immense competition, the level of competition is enhanced within the complex market offering in terms of technology, prices, in-flight entertainment, customer services, and so on. Hence, this paper is presented to analyze the Porter’s five forces model in the horizon of airline industry. Porter has also given the more enhanced framework of forces by including the sixth force as well, which will subsequently be analyzed according to said industry. Porter’s Six Forces Model Analysis The extension of Porter’s five forces model is actually regarded as Porter’s six forces model. The enhanced stimuli of forces did not gain such popularity as that of its previous model integrating five forces only, because of its less positive acceptance. The model is similar to the five forces model with only difference of sixth force in the framework. Hence, all Porter’s (1980) forces are explained below with their certitude rating in the parameters of airline industry. Force 1: Threats of New Entrants The threat of new firm into the same industry is the force which describes the dependability of new entrants on the entering barriers. These barriers...
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...Best Buy is a household name among the electronics industry. In recent years they have seen a decline in profits and are forced to close fifty stores in an attempt to restructure. In an attempt to understand the competitive forces that Best Buy must overcome and determine their strategic position in the electronic marketplace I will utilize the Porter six forces framework. Porter’s Six Forces | | SupplierPower:MODERATE to HIGH * Panasonic * Sony * Samsung * Vizio | Threat of Substitution: LOW | Threat of Entry:MODERATE to HIGH * E-commerce * Amazon * QVC | IndustryRivalry: HIGH * Wal-Mart * Sears * Radio Shack * Hhgregg * Apple | | | BuyerPower: LOW | Complements: NONE | | Industry Rivalry Industry rivalry is the most significant force of Porter’s six forces; the electronics retail industry ranking very high in rivalry. There are several major companies that sell predominately electronic products and several specific niche markets; hhgregg, Sears, and Radio Shack are among the major players. Unfortunately companies like Wal-Mart and Target who are considered companies outside the electronics industry and are discount retailers prove to be significant competition in an already competitive market. The ability to shop elsewhere at little or no cost contributes to the high competition. Best Buy does not offer differentiated products; their products can be purchased at all electronic stores and retail chains like Wal-Mart. Because of the lack...
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...Porter’s Six Forces Analysis of Commercial Airline Industry Porter’s six forces analizis Micheal Porter projected six forces model in capacity to analyze competitive strategy of the management in any industry. These six forces become crucial in the success of every single industry, because they allow managers to measure and control every aspect of their business. A quote from Michael “The collective strength of these forces determines the ultimate profit potential in the industry.” Forces that are known as threats of new entrants, rivalry among existing firms, threat of substitutes products or services, barging power of buyers, barging power of suppliers, and relative power of the state holders. This forces will be use to analyze the airline industry. Threat of New Entrants: Low The purpose of a new entry for a business is the opportunity to reach new horizons, the chance to moves up to the next level in profitability. The most popular thought regarding this industry, is that buying or leasing airplane is a mission impossible. Looking depply Into this industry, we can find a lot of obstructions that make it difficult for a company to succeed. the space for newcomers is squeezed, the high cost of industry because it is one of the most expensive and complex industry in terms of maintenance, the constant demand of highly and sophisticated technological systems to operate, the never end restriction from the government like air traffic, security, transportation. We can use...
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...design for how a company intends to profit from its strategies, work processes, and work activities. Strategic management is important for four reasons. First, it makes a difference in how well organizations perform. Second, it’s important for helping managers cope with continually changing situations. Third, strategic management helps coordinate diverse divisions, departments, functions, and work activities, and keeps all focused on achieving the organization’s goals. Finally, it’s important because it’s involved in many of the decisions that managers make. The Strategic Management Process ✓ List the six steps in the strategic management process. ✓ Describe what managers do during external and internal analyses. ✓ Explain the role of resources, capabilities, and core competencies. ✓ Define strengths, weaknesses, opportunities, and threats. The six steps in the strategic management process are: (1) identify the current mission, goals, and strategies; (2) do an external analysis; (3) do an internal analysis – steps 2 and 3 collectively are known as SWOT analysis; (4) formulate strategies; (5) implement strategies; and (6) evaluate strategies. (See Exhibit 8-1.) During an internal analysis, managers assess the organization’s resources (assets) and capabilities (how work is done). The major value-creating skills and capabilities are the organization’s core competencies. Any activities the organization does well or any unique...
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...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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...chickens in its South Australian farm due to a new outbreak of avian virus. The Health Department has already requested a product recall and newspapers around the country will report this new incident to the public. Bigbird’s profitability will be severely impacted and panic reaction from the public is expected. In the boardroom, Bob Brown and John Smith are discussing the potential impact of such an incident on Chasseur Chickens’ future growth. The sales manager has received a notice from two large supermarket chains advising that they wish to temporarily cancel their chicken orders until further notice. It is anticipated that other smaller customers will follow the retail giants and Chasseur’s sales volume will be halved for at least the next six months. While Chasseur is in a strong financial position, its future growth is questionable....
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...Bureaucracy Observed (An Experience-Based Analysis) (An Experience-Based Analysis) Joshua A Ward University of Maryland University College Author’s Note This paper was prepared for MGMT 610 9045 Organizational Theory (2615), taught by Professor Matthews. According to German sociologist, political economist, administrative scholar, and historian Max Weber, bureaucracy is “a particular type of administrative structure developed through rational legal authority.” (Swanson, 2013) His six major principles have formed the foundation for understanding bureaucracy since their inception. They include the idea that a bureaucracy must consist of a formal hierarchical structure, i.e., each level controls the level below it and is controlled by the level above. Organization by functional specialty is key, work must be performed by specialists, and those specialists are organized into units based on the type of work they do of the skills they possess. Bureaucracy is purposely impersonal, with the major idea being that all employees and customers must and should be treated equally, with no organizational decision influenced or based on individual differences. Also, employment in a bureaucracy should be based primarily on technical qualifications, with the most consideration given to a potential employee who is most qualified, once again, without any consideration given to personal preference. From personal experience, the United States military is a prime example of bureaucracy...
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