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SMMCG8[BS-2] External Analysis, G8 (Jasmine 蔡亞諠, Jenny 柯瑋婷, Iris 鄭淇云,…

- - - - Answers
        
        Kurt Bock
        
        Our regulatory environment is absolutely a challenge
        
        be attuned to the regulatory environment
        
        spend lots of time in industry groups
        
        Insurance industry is so transparent
        
        have got to step back and hear the weak signals
        
        Sean Chou
        
        changing composition of the workforce
        
        be the platform for all of contingent labor
        
        moving away from traditional on-premise enterprise software and evolving ASP
        
        has helped story over time
        
        Al Goldstein
        
        the nature of the change in the regulatory schemes and some financial crisis
        
        evolve and really embrace the change
  - - - transportation&energy policies
      - demand
      - urbanization, middle class, green living
      - electric&hybrid cars
      - climate change, air pollution, waste cycling
      - trade, investment, labor
    - - guidence
      - adaption
- - - - buyers are a bigger threat when
        
        buyers are concentrated - few buyers buy a large % of sales
        
        product is a large % of costs or income for buyer
        
        products is not important for buyer quality or performance
        
        few switching cost for the buyer
        
        buyers can backward integration (a form of vertical integration)
        
        the more the buyer relies on the industry, and not vice-versa, the higher(lower) the industry's(buyer's) bargaining power
    - - suppliers are a bigger threat when
        
        suppliers are concentrated - few suppliers control most supply
        
        suppliers face few substitute products
        
        the suppliers products are important for the focal industry
        
        suppliers products are differentiated or present high switching cost
        
        buyers can forward integration (a form of vertical integration)
        
        the more the supplier relies on selling to the industry, and not vice-versa, the lower its bargaining power
    - - another barriers
        
        highlight advantages that new entrants are difficult to copy or reproduce
        
        raw materials,favorable locations, government regulations,and difficult to imitate technologies and processes
      - Natural entry barriers
        
        capital requirment
        
        supply side
        
        have to make a very large imnestment
        
        develop a cost-competitive production base
        
        scope economies
        
        per unit costs decline when you produce a few different products together
        
        scale economies
        
        the unit cost of production go down with scale
        
        learning/experienced curve economies
        
        unit costs decline over
        time as producing more and more units over time
      - effective entry barriers
        
        product/service differentiation
        
        customer loyalty
        
        Access to distribution channels
        
        shelf space in retail stores is limited
        
        the logistics of distribution are just so complicated and expensive
      - expected retaliation(strategic entry barriers)
        
        when an industry has slow growth or high exit costs
        
        Existing firm might respond to entry with aggressive pricing, advertising, new products, etc.
    - - To reduce price rivalry
        
        product differentiation
        
        customer loyalty
        
        heterogeneity among consumer preferences
        
        industry concentration
        
        the sale of products or services in the industry is
        in the hands of a very small number of firms
        
        monopolist
        
        when both are high and choose to reduce the price
        
        difficult to grab market share from others
        
        lose loyal customers who are willing to pay the original price
        
        The small amount of extra revenue and extra profitis not enough to offset the loss profits from existing customers shown
      - others barriers to price rivalry
        
        demand growth
        
        low exit barriers
        
        have low fixed or storage costs
        
        over-capacity
    - - neighboring industries to the focal industry
        
        better cost stucture
        
        can limit the profitability of the focal industry by effectively constraining the prices
        
        more innovative or value-providing
        
        meet similar needs
        
        improve quickly in cost/performance
  - - - Structure
        
        product differentiation
        
        buyers and sellers
        
        barriers to entry
        
        switching costs
        
        Conduct
        
        advertising
        
        pricing
        
        capital investment
        
        bargaining
        
        Performance
        
        economic profits
    - - Structure of Premier League
        
        Sharing of TV revenue
        
        Balanced teams & competitive soccer
        
        Financial Fair Play rules
        
        Limits competition over players salaries
        
        Centralized TV rights deals
        
        Scale & bargaining advantages
  - - - A set of similar firms associated with a single product-market
    - - A nested concept
        
        Judging on how narrowly or broadly people define
    - - Understand
        
        more or less profitable
      - Decide
        
        resources allocation
      - Intervene
        
        to change the profitability
    - - Weak relationship
        
        High-tech
        
        Profitability
        
        e.g.
        
        food products industries
        
        high profitability
        
        technologically complex industries
        
        low profitability
- - - - Coca Cola
      - PepsiCo
    - - Brand loyalty
      - distribution is a challenge
        
        bottling capacity
        
        logistics capability
        
        relationships with buyers
      - health conscious rises
      - political and legal developments
  - - - Weak
        
        Individual customers generally buy small volumes and they are not concentrated in specific markets either.
        
        Low price product
        
        Because of brand loyalty of customers
        large retailers need to carry soft drink brand
    - - Weak
        
        Large number of suppliers
        
        Switching costs for Soft Drink Industry is not so high
        
        The primarily supplier is commodity-type products
    - - Weak
        
        There are significant investments to be made for new company
        
        New company lack of access to distribution
        
        New company Lack of brand loyalty
        
        existing firms have already purchased large capital expenditures and have economies of scale
    - - Strong
        
        if there's one area that's unfavorable for soft drink industry profits, it's substitutes
        
        health concerns
        
        growing popularity of other new types of beverages , the mainstream soft drink industry will faring badly in consumers' minds
    - - Weak
        
        only two key players
        
        Coca Cola
        
        PepsiCo
        
        Both do so much advertising and promotion
        
        not so much based on price, and the key reason for that is product differentiation
        
        it more fruitful to build customer loyalty for their brands
- - - - which sets of firms are competitors and which ones
        make substitutes
  - - - the pivotal force
        
        aware about it
      - generally prioritize for it as a manager
  - - - substitutes
      - buyers
      - rivals
      - suppliers
      - entrants
  - - - increased industry concentration
      - yield management
  - - - sixth force
        
        opposite of substitutes as the conceptual
      - cooperate and compete with complement producers
        
        coopetition
        
        industry players