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COMM391 Section 921 Phase 1 by Mind Map: COMM391 Section 921 Phase 1
0.0 stars - 0 reviews range from 0 to 5

COMM391 Section 921 Phase 1

GoodFoods

Value Proposition: Healthy and authentic organic food provided to healthy minded people striving towards a balanced, natural lifestyle

Assumption: 1) Catering to the customers who are explicitly seeking out organic food and are committed to buying organic for an extended period of their lifetime in addition they are willing to pay a premium to adopt this lifestyle.

Suppliers (most important) - since they can always raise/control the prices and we are not growing/producing the organic food at all. Totally dependent on the imports or local produce. The effect of prices going up will trickle down to customers very fast and very much noticeable and prominent than the presence of competitors, hence making it most important of 5 factors. We would need to have Just In Time supply chain, assuming we have good forecasting models given by our IT, so we need to make sure our suppliers can meet our demand in time.

Substitute: Not really an issue, because it's a niche market and there aren't many outlets or brands making organic food products.

Potential Entrants: It won't be easy for new competitors to enter the market. We already have an established brand name, loyal customers whereas the new comer will take time developing trust, assembling and trying to advertise their products unless they offer really low prices to attract our customers or we can continue to offer superior service. We can exploit the supplier force for the new entrants by giving bigger orders to our suppliers.

Buyers: Based on our assumption, we feel the buyers are going to be loyal to our products, regardless of minor price changes. We expect the buyers to be not a significant factor, given they have already made the choice to adopt organic food as part of their of their lifestyle at a premium price.

Rivalry: The bigger retail outlets, like safeway, save on foods, costco, superstore, they do represent a threat but that's not their focus since they do not represent a lifestyle as portrayed by Good Foods. Whereas GoodFoods is solely focused on organic foods which gives them a sense of identity and peace of mind for customers.

Most Important Force: Substitute -the primary substitute for our industry is public healthcare - For the private healthcare industry, substitutes are the most important force because public healthcare can be substituted by private healthcare - People usually prefer the free good, it's a one-way substitute - At the same time, private healthcare is appealing to those who have money and want to save time (Less lineups, quicker access to healthcare, etc.) - It depends on the conditions of the economy: when the economy is bad, people are most likely going to use public healthcare - Patients will not be willing to pay more for a service that is provided by the government for free, unless there are medical emergencies Potential Entrants: - Low threat because it's a hard market to enter (barriers to entry) - High startup costs Buyers: - Low threat, hard to drive prices down

Group 116

Weak A good initial attempt. However these are things you need to consider: "Customers" are not necessarily JUST real estate agents, especially if the realty office is as small and locally-focused as VanRealty is. Customers could also be future homeowners or those looking to sell their homes. As such, you have failed to place the Porters 5 forces of "Buyers" into the VanRealty context. Please re-read the company description. However, good job on your explanation of WHY real estate agents in general are important in the real estate business. This would've been a good answer had VanReality been a much larger, regionally dominant reality company.

VanRealty

Group 101

Good - Nice work outlining each one and ranking them all. Which one is the most important? Also, elaborate on what you meant by "point of differentiation, price/service". When thinking about the P5, think about how your company fits in with it. Are you competing against national firms or the smaller local firms? Residential or Commercial? Keep this in mind moving forward. Overall good stuff. -Rupin

MoveIT

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

Group 105

Good - Nice work. You bring up some good points in rivalry. There are switching costs (trailer fees) but as you said, those are minimal. Now its time to take it a step further: how will rivalry change how VanRealty operates? Will it target a specific market, change its value proposition, or try cost leadership? Also, do you consider substitutes important? As a real estate services firm, be sure to look at the bigger picture. Also be wary that you not only help sell property but also help buy property. Overall good work! -Rupin

VanRealty

Group 106

Good - I like how you're to the point. Nice work. When reading the nodes on suppliers, it seems like you're jumping from point to point, which makes it a little hard to follow. Also, how will you have "good relations" with the suppliers, and what will make them give you a better price than Whole Foods, which is much bigger? As you've outlined, there are a smaller number of suppliers, which gives them much higher power during price negotiations. Other than that, you guys have a good grasp of things. Great start! -Rupin

Good Foods Canada

Group 107

Weak Nice start. Potential entrants is a very important force. Let's take it a step further now: how does the prospect of new entrants into the industry affect how MoveIT operates? Be sure to keep in mind the other forces as we move forward and develop the value proposition in Phase 2. -Rupin

MoveIT

Group 118

Adequate I like the variegated analysis you have done regarding the realty industry of Vancouver. However, you have failed in this analysis to CLEARLY justify/outline WHY exactly rivalry is the most important Porters 5 Forces? Merely saying that the real estate market is "saturated with numerous firms of all sizes" is not enough. Please elaborate.

VanRealty Strongest Force: Rivalry

Group 117

Weak+ A good initial attempt. However, if stating that Workforce's clients can find temporary workers through other avenues such as Workopolis, Craiglist etc. then the accompanying Porters 5 forces for this would be "Rivalry" and NOT "Threat of Substitutes" as you have indicated. This is because Workopolis is a market competitor for City Workforce. This site has the capability to source temp ( and permanent) workers for clients through its online job listing portal. Refer to class notes for what difference is between "Threat of Substitutes" and "Rivalry."

City Workforce

Group 119

Adequate +/Good - Good justification as to why you've selected "Threat of Substitutes" as the most important Porters 5 forces. Could have taken justification a little further by stating/explaining why GoodFoods prices may be "slightly higher than other big box stores." ( i.e. could have referred to differences in distribution channels & chains etc.) Also, I like the comprehensive analysis you have done with regards to the other porters 5 forces and how in doing so you have supported your answer of "Substitutes" being the most important porters 5 forces.

COMPANY : GOOD FOODS

Group 120

Adequate - A good initial attempt.However, rationale not entirely sound when stating why "Threat of Substitutes" is the most important Porters 5 Forces. Stating that "patients WILL NOT BE willing to pay more" for a service otherwise provided free by the government is not sound, as Datamed's differention strategy is that of customer-focus. In having this business strategy, Datamed seeks to induce a just noticeable difference in medical services and compel customers to pay for medical services. Also, failed to justify why other Porters 5 Forces are important. For example, merely stating " hard to drive prices down" is not enough. Need to say WHY this is the case.

DataMed Clinic (Private Healthcare Clinic)

Group 115

Weak Failed to adequately justify selection of Buyers being the most important Porters 5 forces. Merely saying that "buyers control the prices" is not enough. If trying to make a valid argument about Buyer's being the most important Porters 5 Forces, then you should discuss how buyers may be concentrated in the area in which VanReality operates and as such they have power over a considerable amount of market share. A more elaborated upon and rationale justification should also have been given to "Sellers" and "Potential Entrants"

VanRealty

Other forces (important to a lesser degree): Sellers: although there are sellers, no transactions occurs without buyers Potential Entrants: the cost to establish a real estate firm is quite costly, and the barriers to entry is high. Top Realtors take a sizeable portion of the real estate market.

Group 114

Adequate + A good initial attempt.I like that in determining which Porters 5 forces is the most important that you have analyzed the other forces and justified why they are not as important. Good insight and rationale as to why "Buying Power" is the most important force. However, you could have elaborated more on why there is little "product differentiation." This seems counter intuitive considering City Workforce is all about securing the "right" temp workers for its clients.

City Workforce

Group 113

Adequate +/Good- Good start! Which of the two Porters 5 forces is the MOST important? It is a little unclear given that the justifications you have provided for both Porters are so inter-related. I did like the justifications you have provided but would however have liked if you had elaborated a bit more on your rationale for the "Threat of Substitutes" Porters 5 forces more.

GoodFoods

Group 111

Adequate -/Weak ++ Good identification of a porters 5 forces. However lacked adequate justification for this selection. Why is Rivalry the most important? Also which industry exactly are you doing a porters 5 forces analysis on? The financial industry? There are many subsections in the vast financial sector, and so perhaps in this case it would be best to select small-to-midsize investment firms as your base industry to conduct a porters analysis on. In future make it clear which industry you are analyzing and why.

VAnalyst

Group 108

Adequate - Nice job outlining the 3 forces. All are very important. Which one is the most important? I'm not sure I understand your comments on potential entrants. How is it easy for a company to build a nation-wide network of offices, gain a reputation of successful hires, and be profitable? Also, what is meant by "lacks a strong value proposition"? In the future, let's try going into more detail as to what you are trying to say. -Rupin

City Workforce

Group 109

Weak + Nice start. I'm a little confused, because in your description it sounds like you're talking about rivalry. Is that what you meant? If you meant buyers and not rivalry, then try to be more clear as to who you define as the buyers and specifically how they have high power. Nice start! -Rupin

VanAnalyst

Group 110

Adequate + Nice how you guys are already looking for a target market. Good start. In this phase however, we're looking directly at the five forces. Since you've chosen rivalry, what we're trying to see is how rivalry affects how DataMed does business. Its good how you've identified private clinics, but now let's take it a step further. Overall, nice start. -Rupin

DataMed

Group 104

Good - Good job outlining rivalry. Its in depth and accurate. The only thing is to be careful about when differentiating between substitutes and rivals. For example, do you consider UHAUL a rival or substitute? If you are following a service-oriented value proposition, then they are a substitute, and not a rival. Other than that, it looks pretty good. We could go more in depth on the other ones as well, because they are quite important. -Rupin

MoveIT

Group 103

Adequate + Nice work talking about the P5. You've stated quite a bit to show your understanding, and you answered the question specifically. Be sure to exhaust each of the P5 and go into as much depth as possible. As an example, when talking about substitutes, also think about government agencies (like Service Canada) that help out with employment. Be careful when talking about the recession. Check current stats to see how the economy is doing before making assumptions and statements. -Rupin

The forces Most Important to City Workforce is buyer power. There are many other forces that are important supplier being the second most important, then substitues and then potential entrants and rivalries sharing the least important spots.

Group 102

Adequate + Nice job identifying substitutes. Try going a bit more in depth into your explanation. Also, it is a good idea to go into a bit of depth on the other forces, so you can be more confident with your choice of the most important. How are substitutes correlated to how your business operates? Also, be wary to differentiate between rivals and substitutes! All in all good work. -Rupin

Good Food Canada

Group121

Group 112

Adequate-/AdequateA good start. However, please justify the statements you have provided under "Rivalry." WHY would you consider the industry to be fragmented? Why would you consider there to be "diversity rivals?" Where did you get your statistic from that this services is NOT frequent ( once in 5 years)? Remember to justify and be able to defend any claims you make, no matter how obvious you think it is. Only in doing so will your argument of Rivalry being the most important Porters 5 Force be sound.

MoveIT

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