Copy of COMM391 Section 201 Phase 1

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Copy of COMM391 Section 201 Phase 1 by Mind Map: Copy of COMM391 Section 201 Phase 1

1. Group 113

1.1. Group 113 VanRealty

1.1.1. Rivalry MOST IMPORTANT

1.1.2. Buyers

1.1.2.1. The ability to use "mere listings" which is when an owner of a house pays a realtor to put it on the MLS system, it increases buyer power as they have another option to sell the house without commission, while still reaching all potential consumers on the MLS

1.1.3. Potential Entrants

1.1.3.1. We did not choose potential entrants because since the market is already saturated with enough realtors that are working in the industry, on extra person that got their 8 month diploma won't impact the overall market

1.1.4. Buyer power

1.1.4.1. Suppliers aren't a player for VanRealty because they aid a transaction between home buyers and home sellers, but do not have any particular supplier. Agents help a sale, thus are providing a service that is attributed to each agent or agency. The agency does not own the house at any time. So Bargaining power of suppliers is not a major force

1.1.5. Threat of Substitue

1.1.5.1. While the ability to list homes in newspapers, on websites like Craigslist, or on other online or physical publications these options do not have a strong threat to real estate firms. They do not effectively replace the service that agents can supply

1.1.6. New node

2. GROUP 110 - Our company, MoveIT, offers moving services for customers which range from picking up and transporting goods by truck to the actual moving process. The most important porters force that affects our business is Rivalry. In the current moving market, there are already a handful of established moving companies who all provide different services and moving packages at varying prices, such UHaul, Two Small Men with Big Hearts, and Student Movers. Essentially it is difficult for MoveIt, because of the mass amount of competition who are already offering a range of services. We felt that although the other forces were applicable to the moving industry, their influences  were not as strong as rivalry. Potential entrants wasn’t the strongest force because any new business can simply acquire the equipment when they have use for it without having high fixed costs. Substitutes was also not as big of a concern because although people are able to rent vehicles to move themselves, this can be very costly and time consuming, and aside from this option there are very few other substitutes. In the moving industry, aside from supplies such as boxes, tape, and wrapping, there are very few products which companies rely on suppliers for. The industry is very independent in terms of suppliers and therefore they have little control over prices.  Buyers is not a force because moving services are time sensitive and is a necessity.

2.1. GROUP 110

3. Group 108

3.1. Good Foods Canada

3.1.1. RIVALRY is the most prominent of the five forces due to the nature of the industry. Big brand names such as Safeway have been adopting more and more organic products, while we have to deal with existing "leaders"of organic food providers such as PC. On top of that, there are several other small firms that exist and are also trying to ride the "green and healthy" organic foods trend.

3.1.1.1. We did not pick POTENTIAL ENTRANTS as the biggest threat because, although it is easy to enter the industry due to the accessibility of organic food suppliers, big brand names are a bigger threat to our sales due to their existing capital and the ability to acquire goods with lower cost due to economies of scale.

3.1.1.1.1. New node

3.1.1.2. We did not pick SUPPLIERS as a big threat because organic food providers are fairly accessible. This gives Good Foods some power as a buyer to keep the prices relatively low. One thing to keep in mind however is the choice between buying locally grown foods and imported goods; we will have to address this in the future to differentiate our firm.

3.1.1.3. SUBSTITUTES not a big threat because the main substitute for our organic foods would be to grow your own foods. Our service is a lot more specific and is oriented towards consumers that wish to acquire organic foods in a convenient fashion.

3.1.1.4. The CUSTOMER actually has quite a bit of power in this industry as they have the power to simply not buy our products and opt for biologically engineered goods. The reason why we did not place the Customer as our biggest threat is because our target market, by definition, naturally want to acquire our products due to their health-conscious nature.

4. Group 105

4.1. Good Foods Canada

4.1.1. Out of the five forces, the suppliers are the most important factor.

4.1.1.1. Concentrate on decreasing supplier power b/c there are fewer farmers who produce organic foods. This means their supplier power is higher and we will work towards lowering this power in order to provide a greater variety of organic foods.

4.1.2. Buyer Power is not as important.

4.1.2.1. Not as important b/c consumers have fewer choices to choose from when buying organic foods.

4.1.3. Potential Entrants are not as important.

4.1.3.1. High start up costs and the need for supplier relationships is also high.

4.1.4. Subs are not as important.

4.1.4.1. Our target market is so specific; for health conscious people, organic foods is one of the few choices.

4.1.5. Rivalry is the second most important factor

4.1.5.1. Large companies like Save-on-Foods area already well known and they have a much larger target audience. These stores are more convenient b/c people generally want to buy all their groceries in one place.

5. Group 118

5.1. Company: MoveIT Rivalry is the most important force.

5.1.1. The moving industry is competitive and based on word of mouth/references. Therefore brand recognition, good first impressions and a good reputation is crucial to maintain loyal customers.

5.1.2. All moving companies are comparable both in prices and quality of services. Differentiating is key. Companies need to constantly be aware of the moves their competitors are making in order to not lose out.

5.2. Supplier power

5.2.1. Not as important because supplies are purchased usually at the start of the business (few purchases necessary afterward).

5.3. Substitutes

5.3.1. The threat of substitutes is not as important because of the limited ways in which this service can be imitated or substituted. ie. You could have a company which moved furniture with a helicopter, but it would too expensive to compete.

5.4. Buying Power

5.4.1. Positively correlated to rivalry, but even so not as important because there are many smaller buyers (ie. families, small businesses)

5.5. Threat of new entrants

5.5.1. Not as important because although it is fairly easy to become a transportation company, much of the business comes from an established reputation and rapport with customers. Also, established companies have many customers already have economies of scale

6. Group 120

6.1. City Workforce

6.1.1. Potential Entrants: creating a diverse database is a significant barrier to entry, therefore this is not most important to consider in our industry

6.1.2. Suppliers: more people supplying resumes than people being hired; database will not run out. Supplier power low therefore it is not important for us

6.1.2.1. node

6.1.3. MOST IMPORTANT --> Buyers: companies who offer jobs -high buyer power because multiple databases exist; no bargaining power -most important because buyer power is high, so it is important to differentiate ourselves as much as possible from other employment agencies

6.1.4. Substitutes: other companies exist but our company is unique in that it organizes employees for the company, saving them time from the hiring process

7. Group 103

7.1. Not as important: Supplier Power: -Perfectly Competitive market of farmers who produce the organic food -We have many suppliers (lots of farmers) -Some supplier dependence on quality of produce: need local suppliers Substitutes: -Our organic product is highly differentiated from non-organic foods and customers who purchase organics are loyal Buyer power: - not buying in great volumes - independent customers with no formal way of communication so they can't cooperate Rivalry: - differentiated product, not competing based on price (no intense price-cutting competition) - vertical integration of farmers (farmers selling directly to our consumers)

7.2. Good Foods Canada Potential entrants as most important - existing supermarkets with distribution channels, easy for them to start an organic branch within their companies at low cost - lots of farmers markets out there where people can source organic food (also lower cost) - people into organics might just grow in their own backyards (especially over the summer) For these three markets - low barriers to entry Since Good Foods is small as a company, may be susceptible to market erosion

8. Group 101 - VanRealty

8.1. RIVALRY: MOST IMPORTANT. Since VanRealty is small realty office, they probably haven't established themselves in the real estate market. Their competitors, who are established in the market, may have a greater advantage in differentiating their agency to the suppliers. Considering the slow growth of the market, rivalry is a threatening factor. If the suppliers are not aware of the agency, VanRealty won't get offers from suppliers to put their houses on their listings.

8.2. SUPPLIERS: Second most important. You need houses to sell and the suppliers have the power to choose which real estate agency they want. These suppliers would choose the agency that presents that best offer for their house.

8.3. BUYERS: Third most important. There's a recent decrease in the number of buyers, which is poses a threat to the real estate market in general. This could possibly drive down the prices of the houses, which could result to a lower profit/revenue.

8.4. POTENTIAL ENTRANTS: LEAST IMPORTANT. Since the industry growth is slow and they are already having trouble capturing and keeping consumers, new people entering won't have the incentive to join the market.

8.5. SUBSTITUTES: (LOW) Subsitute for selling or buying a house is leasing out your property or choosing to lease a property instead of buy. However if a seller or buyer is really intent on selling or purchasing a home then they will.

9. Group 106 DataMed Medical Clinic (privately registered)

9.1. Most important force is SUBSTITUTES.

9.1.1. E.g. Public Health Care

9.1.1.1. significantly cheaper, free from extra charges (for insured services)

9.1.1.2. can provide the same service as private health care

9.1.1.3. more convenient (e.g. ambulances)

9.1.1.4. delivers health care consistently; all patients are treated equally; doesn't matter if you're rich or poor

9.2. Potential entrants- Entrants are not a major threat to this industry as, people use healthcare in their area generally. Unless a potential entrant wants to move onto the turf of our company then they are not major threats.

9.2.1. In fact more private clinics may increase popularity of using privatized healthcare, increasing our business

9.3. Suppliers- To some degree suppliers dont have a lot of choice regarding who they provide too. Hospitals and medical clinics are major buyers for these suppliers, therefore little supplier power

9.4. Customers- Customers have low bargaining power at privately registered health clinics since people who go to these clinics already expect to pay higher costs for better service.

9.5. Rivalry- It is not as much a threat as stated in potential entrants, this industry depends on area, as customers will go to clinic that is most convenient to them. As well more private clinics means more movement towards privatized healthcare; a good thing for our company

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

11. Group 102 - VanRealty

11.1. Rivalry: Most important

11.1.1. There are many similar firms in the same industry competing for the same consumer base. The properties (products) are not differentiated. The contract between the realtor and the buyer is short term, and allows the rivals to jump in when the contract ends and convince the consumer to renew it. Therefore, it's really important to provide high quality customer service as a point of differentiation from competitors to retain customers in a stagnated industry.

11.2. Potential Entries

11.2.1. We didn't choose this because of the high entry barriers and is expensive to become a realtor.

11.3. Suppliers

11.3.1. There's always demand for houses, always people who want to buy and people who want to sell.

11.4. Substitutes

11.4.1. There are some who choose to cut the middle man (agent) in order to save the commission, and risk losing the potential profit from the sale because they aren't aware of the market prices and potential plans. Many people still prefer the traditional way of selling through an agent.

11.5. Buyers

11.5.1. Buyers are relatively significant but their power is due mostly to rivalry

12. Group 104

12.1. Vanalysist: Buyers would be the most essential. As an investment firm, buyers would be the firm's only source of profit (e.g. commission). Buyers have high buyer powers because the investment industry have low differentiation between rivalry firms. However, potential entry is a less significant aspect due to the current economic recession(new entrants have a higher risk of entering during economic recession). Buyers will have lesser disposable income for investments.

12.2. Suppliers are insignificant because there are no direct suppliers in an investment industry

12.3. Substitutes are also an important aspect of the industry because buyers have limited disposable income. Thus, buyers have a lesser incentive to make any investments. Therefore, Vanalysist will have to put in more effort in its marketing to attract new buyers

13. Group 111

13.1. For City Workforce, the most important force is the buyers, who are the companies that come to City Workforce looking for short term employees. City Workforce is also focused on trying to develop a system that allows them to efficiently assign the most qualified employee to any given job posting, because if the hiring companies aren't satisfied, and don't continue to use their service, they will lose potential revenue. Buyers have more power when the economy is struggling, because they aren't willing to hire as many people, and there are more individuals looking for work.

13.2. Suppliers (people looking to be hired) have some power because, if noone is looking for work, then City Workforce has no employees to provide companies with. However, there are always people looking for work, and the suppliers aren't paying for their services, the buyers are which gives them a greater influence over City Workforces operations.

13.2.1. Substitutes/Rivalry: Although there are alternatives (Monster.ca), City Workforces services are differentiated (more efficient way to hire employees who have already been selected as qualified for the position).

14. MoveIT: Group 109

14.1. Rivalry - The industry is oligopolistic,with one of the main competitors being U-HAUL as it is already well known and distinguished in the market; which makes new comers such as MoveIT very difficult to get established and well known. The hardest thing to achieve would be to advertise and make our name and services well known. One of the reasons why we didn't pick suppliers was because the main product we would need are vehicles such as trucks, and it is not a highly differentiable product; which means that it can be easily accessible from many suppliers which gives us a lot of flexibility to choose between the best deals that we can get.

15. Group 119

15.1. Good Foods Canada

15.1.1. Substitutes

15.1.1.1. There are a high amount of substitutes for organic food that can be found in other industries

15.1.1.2. Lower-quality food can be found for the lower prices fulfilling the same need of hunger

15.1.1.3. The threat of substitution is higher simply because our product requires a higher knowledge base to truly appreciate

15.1.2. Suppliers

15.1.2.1. By virtue of having to rely on local farmers for our product, we are highly dependent on suppliers

15.1.2.2. One bad crop season would lead to horrendous results for our company.

15.2. Two of the five forces, Substitutes and Suppliers, are essential to the well being of Good Foods Canada. However, if we must decide, suppliers are clearly the more important of the two simply by being more volatile. Substitutes to our product are not as dangerous to our brand because we already serve a consistent niche that is unlikely to take on other cheaper foods. We are wholly dependent on local suppliers to provide us with reasonable prices and a consistent stream of inventory.

16. Group 117

16.1. Company: CityWorkforce In our industry the buyer factor is the most important. In the current economy there is a large unemployed workforce which constitutes our supply. However there are comparably less employers, who are our buyers. Therefore, the buyers have more power to dictate the price and quantity of workers supplied. There are already a number of rivals who are all competing for a small market so rivalry is also high. However it is difficult to build the brand and suppliers to enter this industry so threat from potential entrants is low. Finally, there are very few substitutes for short-term workers.

16.2. New node

17. Group 107

17.1. For city workforce we believe that potential substitutes is the most important force that will drive the industry. This is because they are offices that provide a service that is very easily being replaced by the internet sites which cause an increase in comfort. Most employment sites are a free surf. The reason why potential new entrants would not be the strongest force is because most companies nowadays would not like to spend funds on building offices and attempting to provide a service which is being dominated by the convenience of IT.

17.2. Bargaining Power of the buyer or supplier wouldn't be as strong of a force for City Workforce

18. Group 115: Vanrealty

18.1. Suppliers

18.1.1. HIGH - revenue depends on number of houses available for sale

18.1.1.1. Dependant on the economy

18.1.1.1.1. During poor economic times, lots of listings, not many buyers

18.1.1.1.2. During solid economic times, many many buyers

18.1.2. MOST IMPORTANT. because there are limited suppliers, and supply controls both revenue streams. At the end of the day this affects their bottom line the most. (if no one is supplier to you, no one can buy from you!!

18.2. Customers

18.2.1. HIGH - they can decide how they want to post and when they want to post

18.3. Substitutes

18.3.1. self listings

18.3.1.1. Craiglist

18.3.1.2. Newspaper classifieds

18.3.2. WHY: Not as important because using substitutes (such as Craigslist and Newspaper classifieds) requires more work by the suppliers of the houses.

18.3.2.1. Realtor can assist customer in marketing the property and exposing the customer to their contact base

18.4. Potential Entrants

18.4.1. Low barriers to entry because all you need to do is get a license which takes 6 months.

18.4.2. Many contacts needed to be successful

18.4.3. WHY: Easy to obtain real estate license; already enough competition within town to worry about new entrants

18.5. Rivalry

18.5.1. lots of rival realtors in the city of Vancouver

18.5.1.1. The keywords "Real Estate Vancouver" produce 44.7 million results

18.5.2. WHY: There may be lots of competition but earning revenue is difficult (regardless of competition) if there is no supply (nothing to sell). In addition, even with high competition, you can focus on customers with a particular need that your property can fulfill or develop new customers through cold-calling, building connections, etc.

18.5.2.1. Imagine there is a huge demand for tiddly winks but no one can make them. It wouldn't matter how many competitors, you can't make money!

18.5.3. WHY: Second to most important because you can have a lot of people wanting to buy properties but if you have no supply; it doesn't matter. You won't be able to make anything.

19. Group 116: DataMed

19.1. SUBSTITUTES is the most important of the Five Forces because the focus of Data Med is to differentiate services provided by the substitutes, such as the government health care.

19.2. Rivalry is not as important because we believe that there are not many services that are similar to data med. There are not many services that are free and therefore they are not our biggest concern

19.3. Buyer power is also not a big threat because people who are willing to pay for service are not likely to care about the price of the service as long as they receive tailored and satisfactory service.

20. Group 114

20.1. DATAMED - Substitutes - supplies can be provided free by federal and provincial government. People go to the states to get their health care faster. Hospitals have better equipment and supplies because they are subsidized by the government, so they are able to perform at a lower cost and often with better equipment than DataMed Clinic.

20.1.1. We didn't choose the other 4 forces because: we are the biggest company in the private sector, there is a low risk of competitors because we have market power. Entrance and suppliers -And it is costly to enter into this market, so therefore the urgency to enter is low. Buyers - dont have a lot of power, because their choices are either public (timely) and private which we are the biggest company in this sector. Rivalry - we are already the most established medical clinic in the private sector, and people care about location and people tend to go to where they are close to.

21. Group 112

21.1. MOVE IT: Rivalry is the most important, there is monopolistic competition in the moving industry because of the large numbers of moving companies in the industry providing the same or similar service but differentiated in probably minor things such as the number of trucks, the geographic location of where they operate, and etc

21.1.1. It's really hard to differentiate one moving company from the other because you are mainly providing the same service, there is little you can do to differentiate yourself from your competitors.

21.1.2. (Group 12)We did not pick other forces because (1) supplier power: they do not need a lot of supplies to run their business, (2) substitutes: outside the industry the substitute would be calling a few friends to help you move , (3) new entrant: the threat of new entrant is considerable but the rivalry from established companies have a bigger impact due do things such as economies of scale, (4) buyer power:there is not much buying power since you aren't purchasing the service constantly, you are only doing it once, and it is probably your only option if you are choosing to move everything you have in your house