Tinglesa is a supermarket chain that wants to open its stores in South Florida. Therefore, they must do a market analysis of their main competition.
The task to do (in Excel template indicate with a cross and make a brief comment on why you think that)
Tab 5 force Industry Analysis (no)
Tab PESTLE (only what is in blue)
politics
Stability
corruption
Foreign Trade Policy
Tax Policy
Funding Grants
regulation
employment law
Consumer Protection Laws
Tab Competitive Analysis (NO)
Tab Strengths-Weaknesses (YES, indicate with a cross and brief comment)
Tab SWOT (Fill Ranking with brief comment)
Tab TOWS (Fill with brief comment)
Attached photo of what we are doing in class for your guidance
> Forces Industry Analysis- ow, edium, igh)
=low, 2=medium, =high) – don’t leave blank
s
column is free to write
Comments H 3 3 0 0 X H 3 3 0 0 Products positioned in the market/low prices/ brand reputation * X 0 0 0 * X H 3 3 0 0 * X H 3 3 0 0 * X H 3 3 0 0 * X it
H 2 2 0 0 * X H 3 3 0 0 * X M 2 0 2 0 * X H 3 3 0 0 * 2 0 LOW L,M,H 1,2,3 LOW MEDIUM HIGH L 3 3 0 0 X H 1 0 0 1 X L 3 3 0 0 X L 1 0 0 1 * X L 3 3 0 0 X L 1 0 0 1 * X 0 3 LOW 5F Answer Importance Bargaining Power L,M,H 1,2,3 LOW MEDIUM HIGH L 3 3 0 0 X L 3 0 0 3 * X M 2 0 2 0 X L 3 3 0 0 X L 3 3 0 0 X M 2 0 2 0 X H 3 3 0 0 * X 3 LOW L,M,H 1,2,3 LOW MEDIUM HIGH H 3 0 0 3 / , and Grocey chains is very high
X H 3 0 0 3 X M 2 0 2 0 X H 1 0 0 1 X M 2 0 2 0 X M 2 0 2 0 Solw grow R/S – Fast online grow X H 3 0 0 3 X 0 0 0 X H 3 3 0 0 * X HIGH L,M,H 1,2,3 LOW MEDIUM HIGH L 2 2 0 0 X L 3 3 0 0 X
2
5
0
Walmart
Rossana Nieves
Instructions: (Only fill out columns C & D)
Column C: is your answer 5 Force Determinant (
L
M
H
Column D: is the importance factor (
1
3
FOR TINGLESA
Columns E,F,G are formulas (DON’T Change)
Comment
INPUT
DON’T CHANGE
INV
Opportunity
Threat
N/A
5F Answer
Importance
Threat of New Entrants
Barriers to Entry Factors
L,M,H
1,2,3
LOW
MEDIUM
HIGH
X
–
Economies of Scale
Products positioned in the market/low prices/ brand reputation
*
– Product Differentiation, brand loyal base
– Switching cost
– 1st Mover Advantage
First in low prices
– Access to Distribution Channels
Great access
– Intelectual Property, Gov.
Regulation
Own brand
– Barriers to e
x
Highly specialized assets
– Response from leaders
– Industry
Growth
Solw grow R/S – Fast online grow
– Capital Requirements
–
Other
Total
23
5F Answer Importance
Bargaining Power
Bargaining Power of Suppliers
– Concentration of suppliers vs. industry players
Walmart is one of the main players to whom they supply products or services
– Switching cost of buyers
For most suppliers, Walmart is their main buyer.
– Differentiation of inputs
A little degree of differentiation between suppliers, low bargaining power
– Few substitutes for inputs
Greater the number of available substitutes the less bargaining power
– Threat of forward integration
A large number of suppliers that guarantee the final product
– Supplier dependance on heavily on indusry players
Supplier Diversity Program (mitigates dependency on a single supplier)
– Other
Total
9
Bargaining Power of Buyers
– Concentration of buyers
Large population of consumers ( no pressure)
– Switching costs
Low consumer switching cost, Other rivalry
– Undiffentiated productS, commoditization
Alternative providers are easy to find and competitors are pitted against each other
– Threat of backward integration
Not demand concessions or discounts
– Industry purchase is large fraction of input cost
– High profit customers
– Quality is not valued by customer
Search for low prices at medium quality
Total
12
4
5F Answer Importance
Intensity of Rivalry
Rivalry among existing firms
– Compete on Price
strong online competition
Amazon
Target
– Fixed costs are high
– High unused capacity
A lot of traffic people at certain times
– Perishable products
– Competitors are many and similarly sized
Few retail sotres/ stron online competition
– Industry growth is slow
– Exit barriers are high
Highly specialized assets, which can be difficult to sell or relocate
– Low chance of “collusion”
– Brand Identity
Low prices in the minds of consumers
Total 3
6
10
5F Answer Importance
Threat of Potential Substitute
Threat of Potential Substitutes
– Closeness of substitute, easy to switch
Few substitutes that offer a wide range of products/ fast online grow
– Performance : Price Relationship
Few substitutes that offer prices as low
– Other
Total 5 0 0 LOW
Source: Competitive Strategy by Michael Porter, Harvard Business School
https://s3.amazonaws.com/he-assets-prod/interactives/057_porters_forces_framework/Launch.html
https://s3.amazonaws.com/he-assets-prod/interactives/057_porters_forces_framework/Launch.html
| Political | |||
| Stability | |||
| Corruption | |||
| Foreign Trade Policy | |||
| Tax Policy | |||
| Funding Grants | |||
| Economic | |||
| Unstable economy | |||
| Interest Rates | Anticipate rising interest rates | ||
| Inflation | High infection | ||
| Disposable Income | Not very clear, could be an opportunity | ||
| Labor Costs | Scarcity of labor | ||
| Social | |||
| Population Growth | Low population gowth rate | ||
| Demographich Changes | Consumers shift towards eating healthier foods | ||
| Cultural Changes | More vegan and vegetarian consumers, | ||
| Consumer Trends/Views | tendency to respect the environment ( organic foods) | ||
| Workforce | Workplace design trends: Sustainable layouts. | ||
| Technological | |||
| Emerging Technologies | Apps, social media can develop a new business | ||
| Maturing Technologies | |||
| Patents | Development of a new brand | ||
| Production | |||
| Research & Development | Environment | ||
| Legal | |||
| Employment Laws | |||
| Consumer Protection Laws | |||
| Tax Policies | Deduct of part of business startup costs | ||
| Anti-trust Laws | |||
| Climate Change | Affect economies, increase resource scarcity and dramatically impact business | ||
| Envitromental Policies | Environmental, social and corporate governance criteria | ||
| Availability of Input | |||
| Corporate Social Resp. | Improving labour policies/ Philanthropic responsibilities | ||
| Health (Pandemic) | Reduced hours/scarcity of labor |
| Most Important Attributes in Category | Company A | Competitor 1 | Competitor 2 | Competitor 3 | Competitor 4 | Competitor 5 | Competitor 6 | Evidence |
| BJs | Publix | Winn Dixie | Aldi | Best | ||||
| Very good | ||||||||
| good – average | ||||||||
| below average | ||||||||
| worst |
s-
es
| Coke-Costa |
| Internal Capabilities |
| Innovation |
| Proprietary Technology |
| New Product Introductions |
| R&D |
| Entrepreneurial |
| Supply Chain |
| Production Cost |
| Effiencies |
| Vertical Integration |
| Capacity |
| Outsourcing |
| Finance – Access to Capital |
| Financial Resources |
| Profitability |
| Cash Available |
| Financing Capacity |
| Parent Company financing |
| Management |
| CEO, C-Suite |
| Know-how |
| Culture |
| Turnover |
| Experience |
| Marketing |
| Brand Equity / Image |
| Marketing Know-how |
| Product Breadth/Depth, Quality |
| Place – Distribution Channels |
| Promotions – Advertising, Digital Media |
| Brand Awareness |
| Brand Loyalty |
| Customer Service |
| Size of Customer base |
| Market Penetration |
| Sales Force |
| Source: Based on “Strategic Market Management” by David Aaker, Christine Moorman |
| Choose the Top 5 | |||||
| Rank | Strengths | Weaknesses | |||
| Opportunities | |||||
| Threats |
