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
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
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.
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.
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.
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.
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.
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.
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.
Not as important because supplies are purchased usually at the start of the business (few purchases necessary afterward).
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.
Positively correlated to rivalry, but even so not as important because there are many smaller buyers (ie. families, small businesses)
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
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
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
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.
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.
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.
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
In fact more private clinics may increase popularity of using privatized healthcare, increasing our business
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.
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.
We didn't choose this because of the high entry barriers and is expensive to become a realtor.
There's always demand for houses, always people who want to buy and people who want to sell.
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 are relatively significant but their power is due mostly to rivalry
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.
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
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).
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).
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.
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.
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
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.
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
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!!
HIGH - they can decide how they want to post and when they want to post
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
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
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.
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.
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
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.
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
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