A key component to finding a firms place in a market is closely associated with the “strategic group map” created by McKinsey consultants in 1996 (CITE). Using the strategic group map a company can identify competitors and positioning against rival venues. After analyzing within a 50-mile radius, 8 Movie theaters, two malls, ice cream shops and Splash Down Water Park were found to be main competitors. Positioning on the map consisted of Duration of Expenses on the vertical axis and expense, respectively low to high. Among other competitor’ The Hudson Valley Renegades were places at mid expense with a high duration of experience deeming it an overall attractive market to consumers.
When evaluating potential success of an innovation, identifying new entrants can assist creating a barrier to entry to maintain customer loyalty. Two new entrants were found to have the ability to directly compete with the Hudson Valley Renegades. Less than an hour from the home of the Renegades, Saugerties New York is searching for a minor league team for their newly renovated stadium. Various prosective teams have been contacted for possible contact signing for the stadium. Though no agreement has been made the town of Saugerties assures they will have a team within a few years (CITE SAURGERTIES TIMES 2013). A second entrant threating the Renegades is local created Adult Baseball and Softba ll leagues. These local teams are increasing in popularity every year (FIND STATISTIC AND CITE). These teams are community based and the increasing popularity have the ability to affect the Renegades.
Supplier and Buyer power significantly affect a company’s ability to generate profit. Identifying strengths and weaknesses further elaborate on the company’s standin...
... middle of paper ...
... to the public. The Renegades also excel in promotions driving sales and promoting business. The Renegade’s weaknesses include having a short season and semi-professional players. A short season only allows for a limited window of generating profit. Semi-professional players do not compete at the same level as a major league team thus spectators are less interested in the game and focus more on the activities and promotions the Renegades offer. The Renegades have few opportunities to maximize profit and create the desired family friendly atmosphere. Expanding the stadium to hold a larger occupancy, using marketing techniques to sellout the average one hundred empty seats per game, create a new promotion to get fans excited are all opportunities the Renegades has to maximize profit. The threats facing the Renegades include entrants, substitutes, and a poor economy.
Colclough, W. G., Daellenbach, L. A., & Sherony, K. R. (1994). Estimating the economic impact of a minor league baseball stadium. Managerial and Decision Economics, 15(5), 497-502.
Abstract: The Stadium construction boom continues, and taxpayers are being forced to pay for new high tech stadiums they don’t want. These new stadiums create only part-time jobs. Stadiums bring money in exclusively for professional leagues and not the communities. The teams are turning public money into private profit. Professional leagues are becoming extremely wealthy at the taxpayers expense. The publicly-funded stadium obsession must be put to a stop before athletes and coaches become even greedier. New stadiums being built hurt public schools, and send a message to children that leisure activities are more important than basic education. Public money needs to be used to for more important services that would benefit the local economy. Stadiums do not help the economy or save struggling towns. There are no net benefits from single purpose stadiums, and therefore the stadium obsessions must be put to a stop.
In Michael Porter’s article “The Five Competitive Forces That Shape Strategy”, he explains that business leaders and strategists should focus on the “industry structure” for more profits instead of focusing narrowly on its direct competitors because there is better profit beyond its rivals. Moreover, Porter emphasizes the importance of five forces in the industry competition, which are: “threat of new entrants, bargaining power of buyers, threat of substitute, bargaining power of suppliers, and rivalry among existing competitors”. I believe that thinking structurally about the businesses and understanding the five competitive forces will improve a company’s performance in its industry in a long run.
The purpose of this case analysis is to provide a framework for making strategic marketing decisions by: 1) documenting the internal and external environment, 2) understanding the strengths, weaknesses, opportunities and threats, 3) identifying the opportunity, 4) developing and evaluating alternatives, and 5) make a recommendation based on organizational strengths.
In determining the competitive intensity and attractiveness of the market, Porter’s five forces is a framework that would help analyze the manufacturing industry of Lincoln Electric and observe the external and internal environmental factors that influence business strategy development for companies within the industry. The five forces are assumed to determine competitive power in a business situation in which these five forces are Supplier Power, Bargaining Power, Competitive Rivalry, Threat of Substitution, and Threat of New Entry.
(2015), indicates that feasibility analysis is conducting preliminary research to determine if there is a potential problem in the market. A market analysis and lifecycles will define the industry strengths, weakness, innovation, cost, maturity and decline phases. The product development cycle and market strategies must be in place during the introduction of the service or product in order to be competitive. The text book, Bessant, J., & Tidd, J. (2015), it states: “An effective competitive strategy either differentiates the new venture from existing ventures, creates a niche in the market that other companies are not serving, or has access to resources that others in the industry do not”. For Deb’s Event /Party Planning business the company our goal is to outperform the rivals and have a competitive advantage of the product. The text indicates that using the Porte’s five that provides an effective way of looking at the structure of a business and the competitive strength and positioning to the
Bargaining power of suppliers analyzes how much power a business 's supplier has and how much control it has over the potential to raise its prices, which, in turn, would lower a business 's profitability. (Arline, 2015).
The core product offered by the supplier, does not represent the single source of value creation for a business customer. Rather, value emerges from the entire customer-supplier interactions, which represent a pillar in using the core resource according to Gronroos (2010). In the following figure is presented the match between customer and supplier processes, which has implications upon both sides’ businesses, in terms of value creation.
When a business thrives in gaining competitive advantage, it often sets eyes on a manifold of strategies that aim to em-better its image and its competitive positioning. It focuses on strategies that may help increase its rate of consumers acquisition, retention and satisfaction; strategies of industry and competitors analysis. Moreover, it sets eyes on those strategic process to build strong investments portfolios ( Liquidity) that can help establish longevity and leadership in the market. Competitive advantage inevitably leads to faster, continual exponential growth, increased sales, market share gains and overall business profitability.
Location is critical to the success of any business in the Service Industry. The location can be one of the single most important choices a company will make in establishing their business and setting themselves up for growth possibilities in the future. A good strategy for a business is to start with their general assessment of their clientele demographic, and then use those results to help strategically locate themselves in order to hedge the competition. In addition to a general demographic assessment, the business might also benefit from conducting a location analysis to help determine the ideal location.
Describe the market in terms of segmentation,targeting and/or positioning theories.Is this current/potential market the best market for the firm?
This research will contribute by presenting a study between Strategic buyer-supplier relationship and logistics and supply chain performance.
The stakes are very high in strategic sourcing; it is one of the most benign sources of shareholder value that has been traditionally been overlooked by a more typical view of a purchasing function. The vast majority of companies, particularly manufacturing companies in the United States have an enormous opportunity to incorporate strategic sourcing into the corporate business practices, sadly this is currently untapped. Those procurement office officials that put in place strategic alliances and/or partnerships that yield best practices and improve supply chain processes can reasonably expect a 3 – 5 percent net savings on commodities and services purchased while concurrently doubling the company’s bottom line.
For assessing the industry profitability, Porter 5 Forces analysis tools were used to analyze one organization evaluation. In this case, the technique were used to analyze 7-Eleven Convenience Store specifically in Malaysia. Porter 5 Forces consists of 5 important area which is Threat of New Entrants, Bargaining Power of customers, Threat of substitute Products and services, Bargaining Power of suppliers, and competitive rivalry within the industry. Theoretically, the more powerful these forces in an industry, the lower its profit potential. The strength of each force differs by industry and changes over time. The competitive advantage that 7-Eleven has using these five forces is it has raised the barrier of entry for other competitors to enter the convenience store market as new competitors will require a huge capital investment in order to implement the information technology in their business in order to be competitive. Also, hypothetically being the first in the market, 7-Eleven could have made contracts with the Malaysia government to not allow other 24-hour convenience stores in the market for a certain time period, such as Astro had done, thus having a monopoly market in the beginning of their operations which will allow them to target a bigger market share.
When businesses start making money, the upper management focusses on maximizing speed, but when the economy is bearish, companies try to minimize supply costs. But there is an issue with this approach, companies who become more efficient and cost-effective, they do not gain a sustainable advantage over their rivals. What gives supply chains of Dell, Amazon and Wal-Mart, the edge over their competitors is not their efficiency but differentiating characteristics such as agility, adaptability and aligning the companies with sustainable competitive advantage.