COMM391 Section 203 Phase 1

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COMM391 Section 203 Phase 1 by Mind Map: COMM391 Section 203 Phase 1

1. Group 301

1.1. City Workforce- HR Industry (Labour supply)

1.1.1. *MOST IMPORTANT* Bargaining power of suppliers is the most important for our industry. Companies within this industry depend on the number and quality of workers that sign up with them. With no suppliers, in this case the workers, there will be no buyers, which are the companies hiring the workers.

1.1.1.1. Threat of substitutes: supplier power is more important, because the quantity and quality of suppliers the company has, affects how strong or weak it is compared to the substitutes.

1.1.1.2. Threat of new entrants: if a lot of information and data is acquired through the suppliers that sign up, it can act as a barrier to entry for other firms.

1.1.1.3. Bargaining power of buyers: this is not as important as bargaining power of suppliers because without suppliers in the first place, no demand from the buyers can be generated.

1.1.1.4. Threat of rivalry: this is not a big threat to our company because City Workforce is a pretty well established firm in Canada presently and together with high quality supply of workers, it will not be easy for competitors to match our company.

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

3. Group 305

3.1. Rivalry

3.1.1. Switching costs are low

3.2. Potential entrants

3.2.1. low level of potential entrants due to high start up costs, high risk in terms of repairs and capturing the market

3.3. Suppliers

3.3.1. Low supplier power because of lack of union

3.4. Buyers

3.4.1. New node

3.5. Substitutes

3.5.1. Friends and family, it is common and easy to ask for the help of friends and family when moving

3.5.2. Self moving company ie) u-haul

4. Group 306 (MoveIT)

4.1. Substitutes

4.1.1. U-haul

4.1.1.1. If don't have the resources- People can rent moving trucks and do the manual labour on their own- eliminating the need for moving services

4.1.2. DIY

4.1.2.1. If people have the equipment and man power, they may choose to move themselves. moving company isn't a necessity- it's a luxury.

4.1.3. Why Substitutes are the most important in the moving indusry:

4.1.3.1. You can be the best moving company- but if the customer doesn't require your services and can substitute them, they won't hire you.

4.2. Why not the others:

4.2.1. Potential entrants

4.2.1.1. high start-up costs (trucks, searching cost for employees, licensing, marketing, etc)

4.2.1.2. difficult to differentiate services- people will stick to the companies that have already proved to be reliable

4.2.2. Supplier power

4.2.2.1. Service industry- after buying capital (trucks) suppliers become less of a concern

4.2.3. Rivalry

4.2.3.1. second largest issue: Difficult to differentiate services.

4.2.3.2. Reputation: once a customer has found a reliable moving company, they are likely to be loyal, spread the word in reference groups

4.2.4. Buyer power

5. Group 307

5.1. VAnalyst

5.1.1. Suppliers - Investment advisors at VanAlyst have the large asset of investment knowledge and expertise. However, the highly cyclical economy is decreasing this force.

6. Group 316

6.1. BUYER POWER

6.1.1. Most important - If you don't have the employers, you don't get any job seekers

6.1.2. Buyer (i.e. companies) provide revenue stream

6.2. Supplier Power

6.2.1. In recession: Employees have less control, since there is less jobs available

6.2.2. Not in recession: Employees have to compete less for jobs and have more power, also to pressure intermediaries such as CityWorkforce. However employers provide the jobs and therefore influence people's decision on which recruitment firm to choose

6.3. Rivalry

6.3.1. Not a lot of rivalry in a locally based firm like CityWorkforce. Success based off goodwill

6.4. Potential Entrants

6.4.1. Barrier to entry: Reputation. New entrants will have difficulty as they are not established and require a big employer/ee base to compete.

6.4.2. CityWorkforce already has this reputation

6.5. Substitutes

6.5.1. Finding employment without recruitment agency - energy and time intensive

6.5.1.1. Go^t sponsored jobs: Not a lot of availability. A lot of control

6.5.2. Hidden Market (time intensive for both employers and employees if network is weak)

7. Group 317

7.1. Potential Entrants

7.1.1. cheap to start up your own moving company. All you need is truck, workers

7.1.2. growing demand for service will attract new businesses.

7.1.3. no barriers to entry

7.1.4. Hard to distiniquish yourself from another company. Only way would be to rely on reputation.

7.1.5. Offer a pretty standard service that is easily replicated. No real competitive advantage. This means that new entrants could easily take business away by offering a slightly lower price and when MoveIT loses customers it would be difficult to re-attract them.

7.1.6. new entrants have more technology, we need to invest in technology and retrain current staff to use it

7.2. Why didn't choose different force

7.2.1. Rivals

7.2.1.1. Demand is growing, assumed there is not enough supply to meet the demand for this market

7.2.1.2. we are a start up company, must be profitable to enter market, meaning no extremely dominant/established moving companies

7.2.2. Suppliers

7.2.2.1. Our suppliers are the movers. With the bad economy many people are looking for work which means the bargaining power of movers is not very high.

7.2.2.2. Movers do not really have special skills to differentiate themselves. therefore they cannot really negotiate higher prices

7.2.3. Buyers

7.2.3.1. Service is in great demand so have little power in driving price down.

7.2.4. Substitutes

7.2.4.1. only other choice is to move your items youself

7.2.4.2. If items are too heavy for you to lift then don't have any other choice

8. Group 318

8.1. DataMed

8.1.1. Buyer Power

8.1.1.1. Dependent on the patients value of our service: do they value free medical service, with for example a higher wait time, or would they rather receive rapid service at a higher price?

8.1.1.2. However, since demand for medical services is much greater than the supply, buyers have low power in this industry

8.1.2. Rivalry

8.1.2.1. Since it is not common to start a private practice, we can assume that rival companies will provide top notch, good quality services. If a rival can manage to lower cost and provide any service at a lower price, it will greatly influence our market.

8.1.3. Substitutes

8.1.3.1. Government funded Medical Clinics: substitute service, if their services are difficult to receive or the customer service quality is low, we will have a higher number of patients

9. Group 319

9.1. MoveIT

9.1.1. Substitute

9.1.1.1. Because there are many alternatives to moving companies that really limit their success.

9.1.1.1.1. FrogBox

9.1.1.1.2. U-Haul: Firstly people can move things themselves with their own cars, Uhaul can also be used if they don't have a large enough vehicle.

9.1.2. Rivalry

9.1.2.1. Somewhat of a big factor as this industry is dominated by a couple of companies, in tight competition because they offer the same service and prices will make the majority of the difference

9.1.3. Buyers

9.1.3.1. Buyer power is not very relevant as the customers do not have much power to change the price of the company

9.1.4. Suppliers

9.1.4.1. Suppliers dont play a major role as we do not sell commodities, nor do we use a large capital base that is dominated by a company and not interchangable

9.1.5. Potential New entrants

9.1.5.1. New entrants are not a significant factor of our moving company because firstly it takes more than a truck to start a business, the brand name is very important, because people need to trust the company with their items. Secondly there isen't a major amount of profit in this sector to attracts many new entrants, doubtful that there is "economic" profit

10. Group 320

10.1. Real Estate Industry

10.1.1. Rivalry

10.1.1.1. The large number of competitors present in the industry serves as the most potent force for the following reasons:

10.1.1.1.1. Largely homogenous services that do not separate firms from others. Some customers might be indifferent to all firms.

10.1.1.1.2. Commission based revenue streams

10.1.1.1.3. Marketing differentiation of different agencies is correlated to success

10.1.2. Suppliers

10.1.3. Potential Entrants

10.1.3.1. The industry is predominantly controlled by a few large firms and entry is restricted by licensing controls.

10.1.3.2. There are substantial costs associated with obtaining licenses. Training to become a real estate broker requires time and money.

10.1.4. Buyer Power

10.1.5. New node

11. Group 315

11.1. Rivalry

11.2. Hard to differentiate our services from competitors without the investment in technology, info tech, etc.

11.3. The other forces aren't as important because: -buyer and supplier power- people will always buy and sell houses, and its important for us to have competitive advantage so we can be selected as the means of transaction -substitutes- real estate companies are the main means of purchasing a house therefore, our services aren't really substitutable because of convenience -potential entrants- in light of the stagnation, people aren't attracted to this industry therefore,there are few potential entrants

11.4. Consumers with higher disposable income would go to larger companies, because of their reputation. In light of the stagnation we are assuming that consumers who are looking to buy have higher incomes.

11.5. As a small sized firm we are at a disadvantage because we don't have the resources that large firms do, and a smaller clientele base.

12. Group 314

12.1. MOST IMPORTANT FORCE: Suppliers

12.1.1. Most Important: High Threat

12.1.2. Our success is directly correlated with suppliers

12.1.2.1. Financially: Our ability to supply organic foods depends on supplier yields which is affected by many variables including weather, inputs, epidemics (e.g. h1n1/animal flues)

12.1.2.2. Organic farming is expensive and in limited supply, yet there are a great deal of organic food sellers (Whole foods etc.) so securing the farmers' organic goods at a competitive cost could prove to be challenging

12.1.2.2.1. High switching costs (from non-organic to organic)

12.1.2.2.2. Product is somewhat unique

12.1.2.2.3. Domination of supply by few suppliers

12.2. Why we did not choose: buyers

12.2.1. Our product is differentiated enough and has a target market that will seek out our product over alternatives even if prices are relatively higher

12.3. Why we did not choose: substitutes

12.3.1. Any other substitute for organic foods do not fulfill the unique benefit that organic foods offer

12.3.1.1. Substitutes such as non-organic foods are not direct substitutes for organic foods for organic food consumers

12.4. Why we did not choose: new entrants

12.4.1. Capital requirements (rent/storespace etc.) are high and there is difficulty in accessing distribution channels

12.5. Why we did not choose: rivalry

12.5.1. Though rivalry is a significant force, it is not the most important

12.5.1.1. Competitors in supplying organic foods to consumers are numerous and continuously growing

12.5.1.2. Product lacks differentiation and has high switching costs

12.5.1.3. However, industry growth is FAST which decreases rivalry so, though significant, rivalry is not the most significant force

13. Group 313

13.1. Rivalry

13.1.1. this is our biggest threat

13.1.2. - Since we’re a private company, our prices would generally be greater than other companies who are subsidized by the government and also who are roughly the same in size

13.2. Buyer Power

13.2.1. As a dentistry, most people would go to public places with lower prices therefore our company must think of many different ways of why they should come to our company instead of others

13.2.1.1. Customer oriented

13.2.1.1.1. make the customers feel that they are really cared for

13.2.1.2. Our uniqueness

13.2.1.3. Create trust; that we are not just about profit

13.2.1.4. provide professionalism

13.2.1.5. show quality and consistency

13.3. suppliers

13.3.1. we assumed that most dentistry companies get their equipment and assets from roughly the same providers so this would not be too much of a threat for us

13.4. Substitute

13.4.1. - Going to a geographically distant dentistry

13.5. Entrance

13.5.1. Not a big threat because the starting cost is very high

14. Group 312

14.1. Potential Entrants

14.1.1. Organic food stores tend to price higher, if a new entrant can sell for lower, then people may switch over to this new store However, we still have an advantage by selling online since many upstart new companies would not have the capital to invest in an online system including delivery costs

14.2. Suppliers

14.2.1. MOST IMPORTANT because we rely heavily on them for our products, and without products we cannot sell. Unforeseen circumstances can deplete our product availability. We may not be guaranteed to receive a consistent supply of product. Suppliers are vital to maintaining our competitive advantage--our prices are based on suppliers.

14.3. Rivalry

14.3.1. Direct competition such as bigger wholefood companies who are not local. Supermarkets with large organic food sections and local farmers who sell directly to customers (these are usually extremely loyal customers)

14.4. Subsitutes

14.4.1. high competition because there are many alternatives like non-organic food for those who don't care as much about where there food comes from such as fast food joints, other restaurants also many people do not know or care about the health benefits of organic foods and would not go out of their way to buy them, especially for their premium price

14.5. Buying Power

14.5.1. Low. Since Good foods is a small chain, they are unable to buy largely in bulk and reduce the price they buy from farmers. Low negotiation power because they are dependent on local suppliers.

15. Group 311

15.1. health care industry

15.1.1. Buyer power is not very important, since medical service is essential for sick patients.

15.1.2. Rivalry - would be the most important force. Within rivalry there are the other big clinics and public hospitals within the area. We have to compete with the others.

15.1.3. Threat of substitutes is low since there is no real substitute to medical services.

15.1.4. Buyer power wouldnt be that important, because most of the people in canada got health insurance. Patients would care too much about the cost.

16. Group 308 (good foods canada)

16.1. rivalry

16.1.1. The industry has a lot of different companies/ competitors who sell both organic and non-organic foods

16.1.2. because customers are fairly indifferent among goods the potential for competition is high

16.1.3. Prices for our stores will be higher than other non-organic stores who can compete via price

16.1.4. not only competing with other grocery stores but also organic cafes, delis etc

16.1.5. The industry is very competitive and sensitive to competition especially on the community level

16.2. Why we didn't pick the other 4 forces

16.2.1. substitutes

16.2.1.1. there are limited substitutes (ie organic and non organic) but the people who buy organic food have a hight loyalty to the product and therefore substitues are not the most important threat

16.2.2. Buyers

16.2.2.1. The customers for the organic food industry are highly committed to the product, and are also within a stable target market usually at a higher income and therefore less sensitive to price

16.2.3. Suppliers

16.2.3.1. because there are a large number of suppliers, the threat they pose to the industry as a whole is not very large

16.2.4. Potential entrants

16.2.4.1. Because fresh food is highly perishable, it would be hard for entrants to enter the market with the same product diversity and suppliers that an established firm has access to

17. Group 309

17.1. VanRealty

17.1.1. 1. Rivalry *Most Important There is slow industry growth. The product is somewhat undifferentiated. Many competitors with same size and power.

17.1.2. Potential Entrants Threat: There are limited barriers to entry as the realtor license is relatively easy to obtain. No need for post secondary education

17.1.3. Buys Bargining Power: Buys have bargaining power to negotiate commission depending on the size of the property

17.1.4. Substitute Threat: There are not many substitutes besides fore sale by owner. However, in this market many people would prefer to use a realtor

17.1.5. Supplier Power: The realtors have a data base and knowledge that is not accessible by outside sources

18. Group 310

18.1. Rivalry

18.1.1. Goldman Sachs - provides similar services but with much larger and wider capital resources

18.1.2. Sunlife Financial

18.1.3. We chose rivalry because there is very strong competition in this market. There are currently many investment firms and VAnalyst must try to differentiate themselves from their competitors

18.2. POTENTIAL ENTRANTS

18.2.1. New entry is difficult because there are many barriers to entry. For example, reputation is very important and new entrants may find it difficult to sufficiently build up their reputation in such a competitive market.

18.2.2. This field also requires many employees with a high level of expertise, which can be difficult to find

18.3. Why we didn't choose the others

18.3.1. Suppliers

18.3.1.1. Suppliers are not an important factor in the financial services industry. There is no "

19. Group 304

19.1. Potential entrants: not as important; the business idea is still quite new, also City Workforce is among the first in the industry/market

19.2. Rivalry: not as important because the business industry s relatively new and there's not many known competitiors as of right now

19.3. Suppliers: Not as important because there are plenty of workers in the workforce due to the weak economy.

19.4. Substitutes: Most important! clients have the option to go to specialized/established companies for services (ie. Painting jobs; if a company needed a painng job done, they can easily go to a Painting company rather than using City Workforce)

19.5. New node

20. Group 303

20.1. Good Foods Canada

20.2. Most important to our industry: Rivalry

20.2.1. difficult to price products at competitive price due to high starting costs for organic grocery

20.2.2. has already more established competitors of the same industry- small organic food chains like IGA

20.2.3. in addition to small organic chain rivalry, must compete with large supermarkets

20.2.4. organic products - not much room for differentiation

20.2.5. high switching costs for possible consumers - difficult to gain new market share

20.3. Reasons for not picking the other forces

20.3.1. Threat of new competition

20.3.1.1. High cost to enter industry making it hard for others to enter thus, lack of new competition

20.3.1.2. diffcult for starting companies to get contracts with suppliers

20.3.2. Suppliers

20.3.2.1. Don't have many optinons, very limited local organic suppliers

20.3.2.2. already have contracts with suppliers, unnecessary to find new suppliers until market cap is big enough

20.3.3. Substitutes

20.3.3.1. existing local loyal customers

20.3.3.2. Store is highly specialize in organic foods - Not many store can operate with being this specalized

20.3.4. Buyer

20.3.4.1. difficult to get new customers

21. Group 302

21.1. Supplier Power - low since there are not that many real estate companies for suppliers to choose from

21.2. Rivalry (Competitors) - high, service lacks differentiation, industry growth is very slow, no switching costs. Also, there are only a few reputable firms around so each firm knows each others actions and they will react to it through strategic actions to maximize potential profits as a best response to the other firm's action.

21.3. New Entrants - low barriers to entry, easy for new real estate agents to enter market. BUT, despite this, its not necessarily easy to be successful as a new entrant, reputation is important to clients

21.4. Threat of Substitutes - low. only other substitute is selling/renting your house online which people prefer not to do as there is less credibility to it and less expertise to refer too.

21.5. Buyer Power - MOST IMPORTANT: high because industry is consumer driven. Hard to get credit from banks to fund investments due to current state of the economy. Example: America - housing market has crashed since no one is buying houses.