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Copy of COMM391 Section 201 Phase 1 by Mind Map: Copy of COMM391 Section 201 Phase 1
0.0 stars - 0 reviews range from 0 to 5

Copy of COMM391 Section 201 Phase 1

Group 113

Adequate- The map was relevant towards the Realtor industry in Vancouver, however the analysis of Buyer Power and Rivalry is a bit weak. Arguably, the realtor's services are differentiable (the industry is not perfectly competitive). Also, the MLS system is controlled by the CREA and only liscenced to authorized groups. Individual posting of houses is not normal. Next time, ensure that the rivalry part is attached to your group node

Group 113 VanRealty

Rivalry MOST IMPORTANT

Buyers, 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

Potential Entrants, 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

Buyer power, 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

Threat of Substitue, 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

New node

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.

Adequate- Good for pointing out that rivalry is the largest challenge for a moving company.  A new entrant can actually enter quite easily, since a truck can be rented, and labour can simply be the founders. Subsitutes can be a risk, since having a friend help move or renting a car is difficult and time consuming, but not necessarily more expensive since there are no service or labour fees. Buyers have high power because the industry is undifferentiated.

GROUP 110

Group 108

Good Good - large retail stores have tremendous power and competition. However, they aren't all in the organic grocery retail sector, so they would be considered more like new entrants. Suppliers might have some power because there are less organic farmers. Good for pointing out that customers are a niche market and aren't as price sensitive.

Good Foods Canada

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., 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., New node, 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., 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., 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.

Group 105

Adequate+ Good on noticing that there are less organic farms. However, stores can backwards integrate or partner with suppliers, so there isn't that much power for the individual farmers. There could also be high threat of potential entrants, since large mainstream retail chains have access to lots of capital, many retail locations, and could easily add an organic section in their existing stores. Save-On-Foods seems to cater to a different market, so it might not be the best example of a rival.

Good Foods Canada

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

Buyer Power is not as important., Not as important b/c consumers have fewer choices to choose from when buying organic foods.

Potential Entrants are not as important., High start up costs and the need for supplier relationships is also high.

Subs are not as important., Our target market is so specific; for health conscious people, organic foods is one of the few choices.

Rivalry is the second most important factor, 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.

Group 118

Adequate Analysis was generally well done. Other substitutes would include renting a truck and moving it yourself. Just a point to think about though: because there is low threat of entry and companies can easily move into the industry, it makes it easier for small startups (such as MoveIT), to come in and differentiate by targeting different sizes of markets, effectively increasing rivalry even more.

Company: MoveIT Rivalry is the most important force.

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.

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.

Supplier power

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

Substitutes

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.

Buying Power

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

Threat of new entrants

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

Group 120

Weak Rivalry has not been analyzed.  Substitutes section should not be from the viewpoint of the company, but for the industry.  Also for buyer power, lack of differentiation leads to high buyer power, not the other way around.  Even though multiple databases do exist, there are other ways for buyer power to be affected.  In your subsitutes area, you say that the company differentiates from other companies by organizing their employees.  Most likely, other existing companies would also have some sort of differentiating feature, thus lowering buyer power

City Workforce

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

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

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

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

Group 103

Good Good analysis with good examples. I'll try to see if I can add some things: I can see buyer power going up when the buyers are often the ones influencing what is being sold in the store (for instance, genetically modified organisms are controversial amongst organic farming). Vertical integration of farmers is more of an issue with supplier power and threat of new entrants. Suppliers of organic produce are quite concentrated so there's probably not that many farms, hence suppliers getting some power there. Also, Good Foods Canada seems to have a brand of "Organic foods at reasonable prices", which means that they might have a target market of people who are price sensitive, and given an economic downturn, may switch to substitutes.

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)

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

Group 101 - VanRealty

Adequate+ Good analysis for identifying Rivalry as the largest factor that influences competitive success. Buyers of a real estate agency are actually spread two-fold: the seller of the home chooses the real estate company, and the buyer of the home chooses the house which indirectly means they choose the real estate company. Buyers of the home actually have next to no power when choosing a real estate agent, since their primary goal is to choose a house. Houses are often highly differentiated based on a variety of factors, so this high differentiation of products will lower buyer power. However, buyer power of sellers are high, since there is low differentiation between real estate agents.

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.

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.

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.

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.

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.

Group 106 DataMed Medical Clinic (privately registered)

Adequate The map identified that public health care is the biggest substitute, which is good. Suppliers however, have high power. Doctors/nurses are at a shortage in Canada, and labour definitely counts as a supplier. As well, pharmaceutical companies with patented drugs have very high power, as they are the only suppliers that offer certain treatments. When considering new entrants, try to consider some barriers of entry. For instance, high cost of capital in starting a new clinic, general public's dislike of private clinics, high customer switching costs (because of the trust and history built between patients and doctors) are all factors that influence threat of new entrants. As well, buyers don't only find convenience to be important - buyers who use private medical clinics likely have a specific need and spend more money, so they are more inclined to shop around.

Most important force is SUBSTITUTES.

E.g. Public Health Care, significantly cheaper, free from extra charges (for insured services), can provide the same service as private health care, more convenient (e.g. ambulances), delivers health care consistently; all patients are treated equally; doesn't matter if you're rich or poor

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.

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

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

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.

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

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

Group 102 - VanRealty

Adequate+ Good, rivalry is indeed one of the most important factors. Properties are often differentiated (which lowers the power of home-buyers), but you're right, real estate agents are not differentiated. One thing to note however, is that supplier power is actually quite high. There is virtually no switching cost in switching suppliers, and there is no substitute for what the supplier group provides. As well, very large developers have a lot of say in controlling the amount of commission VanRealty can have, since VanRealty likely has very little of these suppliers, given their small size.

Rivalry: Most important

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.

Potential Entries

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

Suppliers

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

Substitutes

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.

Buyers

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

Group 104

Adequate+ Good analysis - investment firms are harder to analyze using porter's five forces since there is a less obvious supply chain in comparison to something like a retail chain. Labour is a supplier, and since the firm is a small investment firm, larger competitors may be hiring better people. Also, the industry is actually quite differentiated, because firms have a long history behind them. Firms who have better performance has differentiated itself by showing that it has better quality services. However, buyers are indeed important - they are not very price sensitive in an industry where poor performance can be costly and embarassing.

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.

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

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

Group 111

Weak- The Map was focused on the company instead of the industry, The resulting five forces model doesn't give an adequate analysis of the respective industry.  Also their reasoning for the company's position wasn't very cohesive or clear

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.

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.

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).

MoveIT: Group 109

Weak+ Good, rivalry is definitely one of the largest challenges. This industry is extremely competitive and undifferentiated. Buyer power is quite high as a result of the lack of differentiation. Since this is a five forces analysis, try to note some of the other forces not mentioned, such as threat of substitutes and threat of new entrants. Substitutes could be moving by yourself, and new entrants have low barriers of entry because the cost of initial capital is low (trucks simply can be rented and the founder itself can be the driver).

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.

Group 119

Weak+ The existing analysis is okay, however, it fails to address the threat of potential entrants, Rivalry, and buyer power.    Supplier power is also not that low because, with the recent increase in demand, there are many farmers that produce organically.  I don't believe the farmers have to be "local"; therefore, one can mitigate the risk of bad production years by having suppliers from other geographical regions. 

Good Foods Canada

Substitutes, There are a high amount of substitutes for organic food that can be found in other industries, Lower-quality food can be found for the lower prices fulfilling the same need of hunger, The threat of substitution is higher simply because our product requires a higher knowledge base to truly appreciate

Suppliers, By virtue of having to rely on local farmers for our product, we are highly dependent on suppliers, One bad crop season would lead to horrendous results for our company.

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.

Group 117

Adequate- While the industry analysis was relevant and I do agree that buyer power is the most important, the supporting reasoning was weak. By stating that potential entrant threat was low because of it is difficult to build the brand and supplier network, this also means that there is differentiation between the existing companies. This in turn would mean that Buyers most likely can not freely switch between different companies in the industry, effectively lowering the buyer power

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.

New node

Group 107

Weak+ Good for pointing out substitutes such as internet services. However, the main buyers of the service are not individuals, they are companies that request these employee candidates. Having a physical space means better service, and companies are more able to come in to speak to HR consultants and the like. Supplier power is also high, since these suppliers are people who are seeking work. They have a choice of applying for jobs not only to City Workforce, but also other websites and sometimes directly to employers. Rivalry is also huge, since there is very little point of differentiation with these types of companies, hence only price or partnerships can retain customers.

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.

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

Group 115: Vanrealty

Weak+ The Map was relevant towards the Realtor Industry in Vancouver; however it had some poor assumptions regarding their supplier power. It assumes that there will be poor suppliers that can control their revenue and supply streams.  However, because the homesellers themsevles are not united and are comprised of individual sellers, the market is effectively competitive, and the supplier power to influence the company is not that high.  Also, their customer power (which i assume to be buyer power) seems to reflect their supplier power.  As you assumed that their supply was going to be constricted, the Rivalry part failed to address the key issues of rivalry in the industry.  Overall, a incomplete weak understanding of the realtor's job resulted in a weak analysis

Suppliers

HIGH - revenue depends on number of houses available for sale, Dependant on the economy, During poor economic times, lots of listings, not many buyers, During solid economic times, many many buyers

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!!

Customers

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

Substitutes

self listings, Craiglist, Newspaper classifieds

WHY: Not as important because using substitutes (such as Craigslist and Newspaper classifieds) requires more work by the suppliers of the houses., Realtor can assist customer in marketing the property and exposing the customer to their contact base

Potential Entrants

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

Many contacts needed to be successful

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

Rivalry

lots of rival realtors in the city of Vancouver, The keywords "Real Estate Vancouver" produce 44.7 million results

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., 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!

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.

Group 116: DataMed

Weak Didn't do a full industry analysis.  Existing analysis is weak and doesn't take into consideration what the private clinic industry's problems are (namely doctor supply, medical supplies, locations, substitues, rivalries).  Also remember that this is an industry analysis and not focused on the company.

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.

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

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.

Group 114

Weak+ While I agree that substitues is the most important factor to consider, the analysis provided for the five forces was weak.  I would say that the threat of entrants is much higher because it is not as costly as you make it be.  Clinics generally do not have overnight stays and offers just normal treatments.  Thus, if the profits are that high, normal general practitioners could open up their own with minimal conversion costs.  This is also supposed to be an industry analysis and not one for your company. So Buyer and Rivalry powers were analyzed incorrectly

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.

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.

Group 112

Weak Industry analysis wasn't very thorough.  While Rivalry may be the most important force, there wasn't much analysis when looking at the other 4 forces.  Also using your assumptions, buyer power is not small because of the assortment of moving companies already existing.  With limited differentiation, buyers are free to choose their company

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

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.

(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