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COMM391 Section 202 Phase 1 by Mind Map: COMM391 Section 202 Phase 1
0.0 stars - 0 reviews range from 0 to 5

COMM391 Section 202 Phase 1

VanReality Potential Entrants- Medium High- It's hard to establish a good network of customer base because there are many rivals who might be willing to provide the similar service at a cheaper commission rate(maybe no commission for new entrant as their entry tactic)

We didn't pick supplier power because it is very unlikely for the home owners to collectively increase the prices, however, depending on specific location of certain houses. Moreover, if the economic condition is dipping down, the homeowners will have less power to drive prices

VAnalyst - financial institution - Group 214

You did a good job in identifying the most and the least significant forces. However, you need to identify opportunities and the threats of these forces. Each of these forces could have the potential opportunities for the success of your company if they are positively affecting your company's value proposition. You need to identify the relationship between five forces and your competitive advantage prior deciding which force is the most significant. Relevance: Adequate. Content: Adequate - . Reasoning: Good. Overall: Adequate

Most significant force: rivalry

There are many companies that are able to offer similar services, with the current instability in this market consumers may look to switching services

The threat of better financial services provided by more up-to date and reliable technology is a great threat to the company

Least significant force: Bargaining power

Suppliers are in great quantities, can not drive prices as they desire, neither can buyers bargain the prices as they need this service which is an essential part of any business

Substitutes are an important force to our industry. There are many different ways for consumers to purchase food. The biggest issue is the already established views of non-organic foods. Since most consumers view non-organic foods as acceptable, they choose to purchase the cheaper good (which in most case is the non-organic food). Also, with the already established "super" grocery stores, it has become more convenient for customers to buy non-organic foods. Thus, substitutes are one of the most important forces as it determines how we need to effectively price and distribute our organic foods in order to maximize revenue.

1) Substitutes

Which of the five forces is the most important for your industry? Why?

Group 205

Need more detail on the buyer power - customer loyalty is not just based on the price sensitivity of the consumers. MoveIt does big moves, which does differentiate them from their substitutes; mention that they rely too much on word of mouth advertising for their customer base. In general you could have added more detail, for example: As a moving company they must have a supplier that has their logo on their boxes. While there are many cardboard box companies to choose from, they most likely would rather deal with just one as opposed to many. So while supplier influence is low, mention why it is and what still needs to be considered. Relevance: Weak+; Content: Adequate; Reasoning: Adequate Overall: Adequate

MoveIT

Substitutes are a big concern for this company as consumers have many choices. They can move themselves, ask friends, or use other service companies, Usually a one time service, customer loyalty is not developed. People just judge on price, Easy to start a moving company, only need a truck, High potential for new entrants, very little barrier for entry, Low switching cost, Even if they are immigrants, they usually have friends/relatives in Vancouver that can help with moving in, They need a value proposition that sets them apart from other moving services such as UHaul. They can focus on making it effortless for the consumer and MoveIT can figure out all the logistics and details., Furniture stores also provide delivery

Supplier is not important because MoveIT can choose between many different companies for trucks and other supplies

Group 206

Good job outlining the substitutes, suppliers and buyers, what about new entrants? You do include competition when you mentioned that if another company does it better then it poses a problem, however talk about new entrants as well, which is another big force VAnalyst faces. Relevance: Good; Content: Adequate; Reasoning: Adequate Overall: Adequate+

VAnalyst

Most important factor: substitute products and services (threat), Lack of up-to-date technology impairs the company' ability to accurately and effectively predict stock market fluctuations, which is vital to the company's ability to effectively serve their customers, This will result in consumer confidence and customer satisfaction, If other firms can better predict these stock market fluctuations, this poses a threat to VAnalyst because they stand to lose a significant portion of their market and clientele base. The ability to respond accordingly to fluctuations is vital to the company's success as a financial analyst firm, The new technology would not only make their operations more efficient and give them a competitive advantage, but also lowers costs accumulated from inefficient operations and systems.

Least important factor: suppliers, In the financial analysis industry, the only supplier of information or other resources is the stock market, which is uncontrollable by any individual firm or force., The only importance of the supplier to VAnalyst is how the firm will respond to its fluctuations and changes

Middle factor: buyers, There will always be a demand for financial analysis because it is an important tool for business financial success. Regardless of any individual buyer's actions, VAnalyst will probably always have access to a viable market.

Group 207

You need to include more forces than just Potential Entrants and competition. What about substitutes? Buyers and Suppliers? Mention which ones are more important than the others as well, with potential entrants as your greatest threat. Mention how much influence the suppliers have in their business, can they easily change suppliers? or do they have only a few loyal ones as you seem to have hinted in your last branch. Relevance: Adequate ; Content: Adequate; Reasoning: Adequate Overall: Adequate

Data Med Medical Clinic

Potential Entrants- as a factor this provides the most harmful threat. This is important to Data Med in order to sustain a competitive business, The market is not restricted to new entrants into the industry. Due to the lack of barriers to entry. The government does not provide any regulation., It is also easy to enter into the market without Government regulation. This means that other firms can start up and become a competitor, The advantage the Data Med has is first mover advantage. As an already established company within Vancouver, we have the ability to create strong consumer relationships. This will ensure repeat visits and a lasting cash flow. The healthcare industry is a sensitive issue for customers, therefore it is important that we are the first and primary company, Data Med has the opportunity to claim a large market share for consumers and medical experts. This will prevent potential entrants from coming in and stealing profits, There is also difficulty for entrants to enter as Data Med will have established connections with suppliers.

Group 216

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Group 218

Good observation on the situation of your company. However, you need to be more specific about your company, product or service, and their market. All five forces could be very important for the success of a business but not necessarily important for your business unless they are directly related to your competitive advantage. You need to focus on your company’s value proposition. Explain why you think each of five forces could be important to that specific value. Relevance: Weak +. Content: Weak. Reasoning: Adequate - Overall: Adequate +

Rivalry is one of the most important forces because there are several companies that offer the same services as MoveIT. Also since it's a relative new company, it might be difficult to compete in terms of pricing.

Buyer power is also crucial since customers have several potential options to choose from. However it is not the most important because if you choose an appropriate target market and differentiate your product successfully, you will have customers.

New node

Substitutes is another force because if people have their own cars or trucks they will not require the services of MoveIT. It is not as important though because people will still need a moving service when dealing with large/heavy furniture.

Group 219

You did a good job in identifying the threats of the five forces. You mentioned that rivalry is the most important force that could affect your company, but is this a threat or an opportunity? You may notice that each of these forces could be either the potential threat or the opportunity for the success of your company. You need to identify your company's value proposition first to understand how each of five forces could affect your competitive advantage. Relevance: Adequate. Content: Adequate +. Reasoning: Good Overall: Adequate +

We believe that Rivalry is the most important of the five forces for the MoveIt company because there are a lot of similar moving companies that offer the same services. Thus, we would consider the rivalry to be high.Therefore, we believe that rivalry is one of the main forces.

All moving companies want to be the most efficient for their customers, and they want to provide reliable service. It's hard to find a differentiating factor for their competitive advantage when all the companies are trying to provide the same service, There are so many different companies offering their services, that it is hard to differentiate between them. How do you leave a lasting impression in potential consumers minds through advertising? (Tough)

New node

As this industry has great demand, "Potential Entrants" could also be one of the more important of the five forces. We consider to this to be a medium force for the MoveIt company. It is medium because there exist some barriers to entry for new companies entering the moving industry, and they have to invest a large amount of money in securing trucks and moving supplies. As well, the fact that there are already so many moving companies in Vancouver, it could serve as a discouraging factor for newer companies to enter the moving industry.

Substitute products and services would not be as much of an acting force in this industry, as there are not a lot of substitutes in different industries for moving services. Mainly, those who are moving have the choice to either move their own furniture themselves or utilize a moving service. As such we consider this force to be low for the MoveIt company.

Group 220

You did not provide enough reasoning to support why rivalry is the most important force for your industry. Competition is one very common factor that businesses have to consider to be successful in their industry. You need to first identify your competitive advantage before you decide which of these forces could be important for the failure or the success of your company. Relevance: Weak +. Content: Adequate. Reasoning: Weak. Overall: Weak +

Group 201

Too general. You need to include more detail on the specific impacts of the forces with your business. Also include competition - even if the impact is low, mention why. Relevance: Weak ; Content: Weak ; Reasoning: Weak Overall: Weak

Industry:Medical Services

**Power of Buyers: Moderate/High you gain revenues through attracting patients (building relationships)

Power of Suppliers: Low, you don't rely heavily on any specific suppliers

Threat of Substitutes: Moderate/High, self-diagnosis on the internet

Threat of New Entrants: Low/Moderate

Group 213

You have mentioned some valid points regarding your competitive advantage, which I assume its your low-price goods and how suppliers can affect your costs. However, you did not explain how the power of your rivals could affect your price! Same as substitution; why do you think cheep non-organic food can affect your competitive advantage (increase your price)? You need to consider the specific effect of five forces on your company's value proposition. Relevance: Adequate. Content: Good. Reasoning: Good + Overall: Good -

Good Foods Canada

Suppliers, By having a good relationship with suppliers, one will be able to lower their prices (gain a competitive advantage)., Most supermarkets already supply buyers with organic alternatives.

Substitutes, Consumers can grow their own food at home, its cheaper., Non- organic food is cheaper, people may shift towards it, People eat out., Those that want to live an exclusively organic life, are limited to their choices.

Competition, Large organic grocery stores have greater buying power, can potentially buy for cheaper., Traditional competition is important because we have to convince them on why they should purchase organic food over regular food., They need to maintain an accessible website that competes with traditional grocery stores., low number of direct competitors (organic food), therefore they are quite established. Stronger buying power.

Suppliers and Substitutes are both really important to this company. Competition is notable, but suppliers and substitutes decide the success of the company

Group 212

You need to provide more reasoning about each force. First you need to identify your value proposition and competitive advantage of your company. Then analyze how these forces could be the potential opportunity or threat for your company's value proposition. For example, do you think "little product differentiation" and "customers have all the power" are the opportunity or the threat for your company? How these factors can affect your company's value proposition? Relevance: Adequate +. Content: Adequate. Reasoning: Weak +. Overall: Adequate

MoveIT

Rivalry, Doesn't have a unique value proposition, Customers have other options, not obligated to stay loyal or to use company, Numerous competitors that are roughly equal in size and power, No switching costs, Slow industry growth

Potential Entrants, Little or no barrier to entry

Buyers, Little product differentiation, Customers have all the power

Less important, Substitutes, No other industries that provide same service

New node

Group 211

Your map provides some very good reasoning about how each of five forces could be the threat or the potential opportunity for your company. Based on your ranking, I assume you believe substitution is the most important force beneficial to your company's value proposition, but why? The most important forces for your company should be the ones that benefit most your company's competitive advantage. Ask yourself these questions: "Why our company is unique?", "How can I use five forces to improve my company's competitive advantage?" Relevance: Good. Content: Adequate +. Reasoning: Good +. Overall: Good

Organic Food Chain Good Foods

3) Power of Suppliers, The power of suppliers is less important because the organic market buys from specific local markets or specially designed organic labels that are not big brand name suppliers that sell their goods to everyone.

4) Rivalries, Is not the top force for our industry because there are not many strictly organic grocery stores if any at all, Competition might arise from grocery stores that sell organic goods as well, and perhaps at a lower price

5) Potential Entrants, Potential Entrants are not important because, similar to rivalries, are very much related to the AREA that the grocery store is located., Communities are more likely to go to a local store that they have been loyal customers too instead of a new store.

New node

2) Power of Buyers, There's not many stores that sell organic foods and the price is HIGH. so Buyers can't really go to other places to buy substitutes.

Group 208

You cannot assume that a force doesn't influence your business, but rather by how much. Goodfoods has low competition, not none, unless you can prove that nobody does what they do and thus operates as a monopoly. Buyer power is not necessarily low if they are a distributor (which seems to be the case) and their customer is a retail business, in which case large quantities can be purchased. Make sure you know everything about your company. Relevance: Adequate ; Content: Weak; Reasoning: Weak Overall: Weak+

Suppliers (Goodfoods)

Only a small chain, therefore has limited buying power.

If the supply of products becomes limited from environmental forces, suppliers can set higher prices

Significant competition in the market for buying the organic produce, so suppliers can choose to sell to others.

We didn't pick rivalry because they are differentiated from competition.

We did not pick buyers, because the buyers cannot buy in large amounts, and individually do not have significant power. Also, the product is differentiated, so if they want Goodfoods' service, they need to go to Goodfoods.

We did not choose potential entrants, because it is very expensive for new entrants to enter the market, creating a very significant barrier to entry.

Group 209

Define traditional competition and explain why you believe that City Workforce won't be affected by it in more detail as your statement is vague. Relevance: Adequate ; Content: Adequate+ ; Reasoning: Adequate+ Overall: Adequate+

Substitue services is the most significant force affecting the City Workforce

Substitue Businesses which could affect the performance of the City Workforce may include recruitment agencies, New node

Carrer colleges allow potential customers an alternate option, rather than working for a temporary employment agency like the City Workforce

Online job posting sites may also threaten the performance of the City Workforce which is a more conventional temporary hiring agency

Did not consider Buyers or Suppliers as being a significant force affecting the City Workforce as there will always be unemployed people looking for work, and companies needing temporary labour. In this company we have determined that the unemployed labourers are the suppliers, and the companies looking for employees are the buyers

Because the traditional temporary employment agencies are becoming phased out of the industry as there are several new online opportunities for employment, we do not believe that the City Workforce will be severely impacted by traditional competition

Potential Entrants is also considered as a significant force affecting the company, but not quite as severe as substitute services. Potential entrants into the may include similar businesses with slightly different business models which may be more appealing to people looking for temporary work.

Group 210

You outlined the most important ones but what about the others? Don't forget every force has an effect on your business even if it is small. Include Buyer power, Competition and New entrants, it is essential in order to fully understand the business. Relevance: Adequate ; Content: Adequate ; Reasoning: Weak+ Overall: Adequate

GOOD FOODS CANADA We believe that Supplier Power and Threat of Substitute Products and Services have the greatest effect on our industry

Supplier Power

High - Significant power - GF is only a "small chain" operating in Vancouver B.C., Farms usually work with large stores and provide large quantities

Farmers have domination of supply since they are the only ones providing the goods required by the company

Farmers able to set high prices since they are only suppliers in industry (acts as a monopoly)

Since the farming industry is perfectly competitive, Good Foods should focus on smaller farms which have less power and would be more willing to collaborate and supply at a cheaper price

Threat of Substitute Products and Services

High - Consumers are able to readily move towards non-organic foods if price charged are too high or if consumer needs aren't being met

It could also be high if buyer propensity towards substitutes is high or if switching costs are low

Remember to keep formatting consistent

Group 204

Use the map's abilities to branch out and outline ALL the different forces, only the buyer force is analyzed in detail here. For example, competition could include companies hiring without the use of city workforce. Take the time to go through it once more. Also what about new entrants? Even if it might not be pertinent to the organization, mention ALL the forces and show why they are not the most important. Relevance: Weak+; Content: Weak+; Reasoning: Adequate Overall: Weak+

City Workforce

Buyers- Consumers determine the amount of traffic a company receives (for example, in retail the number of consumers that like a particular store will create a high traffic situation in these stores. Especially in companies that require a strong employee to consumer ratio (think stores such as electronics, where consumers are seeking the expertise of its associates). So long as consumers increase, stores will seek a greater number of employees, which City Workforce can provide them with. We do not think temporary human resources work that we do will have a great amount of competition, so rivalry and substitutes won't really apply to us.

Group 203

Include more specifics on the buyer and supplier powers of VanReality, who they are and what their importance is. Mention new entrant influence on VanReality as well. Even though one power will have a greater impact than the others mention why the other ones are low, it'll help you understand the business more. Relevance: Adequate ; Content: Weak+ ; Reasoning: Adequate Overall: Adequate

VanRealty

Many real estate companies - some are large in size, others are smaller, little product differentiation -, slowing growth of real estate - stagnation - poor economy, people not buying houses, very low switching costs - can use more than one company at the same time, dependent on time - sellers of homes want to sell fast, bargaining power of suppliers is low - real estate professionals have a better idea of what the house can go for on the market, number of houses on market dropping - limited number of houses with lots of companies available, large ones have more power on market, add value with quality/amount of service - higher commission, threat of substitutes is medium - for sale by owner most likely will not get you the maximum you can with an agency, price performance of substitutes can be high if using an agency

Group 202

Include more detail on all the forces, you outlined competition, what about substitutes? They are a very important factor with city workforce, e.g. online recruitment sites or recruitment agencies. Even if a recession is occuring, you have to consider long term effects of other forces so include more detail on the buyers and suppliers. There might be many agencies but that don't necessarily correlate with new entrant power, one can set up a recruitment site relatively easily. Relevance: Weak+; Content: Adequate ; Reasoning: Weak+ Overall: Weak+

City WorkForce

Traditional Competition, Disadvantage at not being international; missing out on international company's work, Establishing relationships is a challenge, The nature of human capital - where are our potential employees going?, Could gain advantage by developing a rating system, employers may find them more reliable, Success of recruiters matching right people to right jobs, High barrier to entry as there are many agencies available

We chose traditional competition because in a recession, our suppliers (temp workers) and buyers (companies) are in need and other temp agencies will be trying to capitalize on this

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Group 215

Your comments are very general. You need to identify your company's competitive advantage and the specific effect of each of five forces on the success of your value proposition. Relevance: Adequate -. Content: Weak +. Reasoning: Weak. Overall: Weak +

City WorkForce

Balance Between Supplier and Buyer Power, Since the company is a temp agency, the company is at the mercy of the supply + demand of jobs, Example: during a period of high unemployment (ex. a recession), supply is high (supplier power low) and companies are more likely to hire temp employees (low buyer power), People just want to have a job, so workers are more willing to go to a temp agency, New node

Buyer Power is more important, Since the main source of income comes from the companies who hire CityForce's workers, The Buyer's employment situation is the deciding factor in the companies income. The higher the buyer power,

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