Strategic analyses can be either internal or external. Internal analyses take a look at firms on an individual basis to determine their abilities, while external analyses look at the industry or overall business environment. The PEST analysis evaluates the environment surrounding an industry. It looks at political, economic, social, and technological factors that are current or potential future drivers that shape the landscape. The tool is useful for both strategy and market research and will provide a broad framework for Casa San Ysidro to consider in their future decisions. In the context of this project, we decided to to focus on a few specific factors that can affect museums within the U.S.
Political - Museums in the U.S. benefit from
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Specifically, it analyzes the major factors within a specific industry. The user can define the “industry” as broadly or as narrowly as is most appropriate for each business. The “five forces” are competition, threat of new entry, suppliers, buyers, and substitutes. Overall, it provides an idea of how attractive an industry is for new entrants or can provide an idea of where a particular business sits within the landscape of that industry. It is important for Casa San Ysidro to understand where they fit within the competitive landscape and what forces could affect their position in years to …show more content…
Museums in general are vastly different in what they offer to patrons. Some focus on a specific academic discipline such as science, history, astronomy, and art. Larger museums are afforded the opportunity to house multi-disciplinary displays, the largest of which have entire wings dedicated to each separate field. That said, the largest museums hold significant market share but only locally. Analysing the U.S. as a whole, there is a high number of competitors in the museum industry with low market share concentration. Locally, most of the large museums in Albuquerque are concentrated near the downtown
Factors creating value in the industry and factors that will most likely input demand in the future.
As strategy consultants of McCormick & Associates, we use Porters Five Forces Model as a framework when making a qualitative evaluation of a firm's strategic position (Appendix 1.2). These five forces determine the competitive intensity and therefore attractiveness of a market. These forces affect the ability of a company to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the market place.
The 5-Force Industry Analysis first introduced by Michel Porter, Harvard Business School professor, a quarter-century ago. This theory examines the suppliers, buyers, product substitutes, existing firms’ rivalry and new entrants in a firm’s product market.
Items displayed in museums hold historical significance and are representative of society’s culture. Preserving valuable collections for education and enjoyment is a primary role of museums. While fulfilling this role, the architecture of the museum is also an important factor. Historical buildings are converted into museums and architects must consider the use of the space and the museum’s purpose during their initial design. Other museums are built with a clear purpose in mind. As museums are designed, many characteristics are determined. Display and storage spaces as well as visitor services impacts museum’s functionality. Based on the function of a museum, architectural requirements are different.
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.
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
These issues could have been resolved if a proper market analysis was done. The outcome of this research could have suggested that it best suits highly populated areas. The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions. Once the market research data is compiled, it is then evaluated upon which recommendations and conclusions are drawn.
3. Analyze BP using the five forces of competition model to determine the industries current attractiveness in terms of profits potential Danger of Incipient Entrants - The more effortless it is for beginning organizations to enter the business, the more vicious rivalry there will be. Variables that can repress the risk of early contestants are kenned as obstructions to entrance. A few cases include:• Power of Suppliers - This is the amount of weight suppliers can put on a business. In the event that one supplier has a cosmically sufficiently enormous effect to influence an organization 's edges and volumes, then it holds generous puissance.
Potential new entrants: With positive economic outlook, fine business environment, and increasing number of population growth rate, it is expected that there will be more companies coming in the industry;
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Museums are mostly the same just about everywhere you go, both in the United States
The PEST Analysis for PC market in UK. Changes in interest rates, exchange rates, technology and the law are all external factors, which can affect a firm. These factors can affect the firms’ costs, or the market as a whole. Changes that take place in the external environment can be evaluated and analysed using a PEST analysis. To analyse the firms’ external environment, the following headings are used.
A museum is “a building in which objects of historical, scientific, artistic, or cultural interest are stored and exhibited.” (dictionary.com). This is the literal definition of a museum as well as my view of them coming into my first semester of college. I believed they were boring, outdated places where historical items were displayed. As I moved through the semester, my professor helped me gain a new perspective of these remarkable museums; one of respect and astonishment. Museums are meant to aid in learning and safeguarding of things that should never be forgotten. Of the many great places I visited this semester that adjusted my feelings towards museums, the ones that had the greatest impact were The National Museum of Natural History, The Newseum, The National Gallery of Art, and The United States Holocaust Memorial Museum. These places are there to remind the general public about things that should never be forgotten; they preserve the history and beauty of the world.
PEST Analysis for a Company in the Tourism Industry The Tourism industry is one of the fastest growing industries in the world. The World Travel and Tourism Council estimates that in 2004 Travel and tourism is expected to generate * US$ 5,490.4 billion of economic activity * 10.4% of total GDP * 214,697,000 jobs or 8.1% of total employment * 12.2% of total exports [1] My task is to conduct a PEST analysis for a company within the Tourism industry. Within the tourism industry, I have to select one area of interest like transportation, accommodation and transportation etc. and then one company doing business with these sectors related with the tourism.