CASE STUDY 2 INTRODUCTION Julia Juice, one of the world’s largest juice retailers who owns 1200+ stores in whole UK and USA. As it grows by year 2005 the growth becomes three times. Porter’s 5 Forces Porter 's competitive analysis will help us to understand the competitiveness of JJ business environment, and identify their strategy 's potential profitability. This is valuable, since, when you comprehend the powers in your condition or industry that can influence your gainfulness, you 'll have the capacity to alter your procedure as needs be. For instance, you could take reasonable preferred standpoint of a solid position or enhance a frail one, and abstain from making incorrectly strides in future. Competitive Rivalry. This force will identify the …show more content…
• Moreover, JJ has now free WIFI zone which made majority of their customers to come in store. When customer base is increasing, buyers power is high. Threat of Substitution. This force states the prospects of JJ’s buyers to find other fast food outlets or juice bars who provide the same services in a different manner. • As JJ provides high quality of juices, if someone does not compromise with the quality and serve with different ingredients for juices. Buyers can find substitute. • And revamps done in IT by JJ would take some time for other to do the same. For example, JJ digital network, Pre-paid app etc. Threat of New Entry This is valuable, since, when you comprehend the powers in your condition or industry that can influence your gainfulness, you 'll have the capacity to alter your technique as needs be. For instance, you could take reasonable favorable position of a solid position or enhance a feeble one, and abstain from making incorrectly strides in future. • Threat of New Entry is not intense, because JJ has its hold in Market from10 years and they re-established them after 2009 with new technology and strategies. JJ itself planning to open 600 new stores which makes new entrants to stop coming in
It allows us to receive corrections, feedback, and affirmation appropriately and to develop and exercise our abilities unencumbered by arrogance or self-deprecation.” (Entwistle, 2015). According to Entwistle, the
Business culture can affect how well a business will prosper. Boost Juice will fail if it has a negative attitude. For Boost Juice to be successful it requires dedicated, enthusiastic and co-operative staff that strive together towards achieving the same goal. If a business has a positive business culture more customers will return. Boost Juice has a very positive attitude and business culture greatly affecting its profit.
Running head: pantry inc. case analysis 1 pantry inc. case analysis 20 Pantry Inc. Case Analysis Sekia Grimes GEB5787 Table of Contents Introduction 3 Industry Analysis 4 General Environment 4 Sociocultural………………………………………………………………………………4 Political/Legal…………………………………………………………………………… .4 Economic…………………………………………………………………………………5 Porter’s Five Forces ……………………………………………………………………………... 5 Rivalry……………………………………………………………………………………5 Threat of New Entrants…………………………………………………………………..
In this era of globalization, the supermarket industry is one of the common investment sectors. It is also forming retail common categories of food products such as fresh and meats, poultry and seafood, fresh fruits and vegetables, canned and frozen foods as well as various dairy products. Investment in this industry can be profitable if succeed but bear in mind that risk still exists if monitoring process is not carried out. Therefore, Professor Michael E. Porter from Harvard Business School has introduced a tool for purposes of analysis potential industry which is the most profitable and potential. Porter stated that five forces are deciding an industry either beneficial at future or it will become a case study and commerce practice (Porter, M.E., 2008).
This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our
By the given operational timings, the sales that Cadbury will make will vary as consumers does not have a fixed schedule as when they are able to buy from Cadbury. Porters’ Five Forces This external analysis is a force that utilizes five different dynamics to determine the viability of an organization and how it manipulates the competitive strategy of the corporation. With the implementation of this analysis, Cadbury would be able to meticulously scrutinize what are the advantages and disadvantages that they are currently or might face and hence, able to prepare themselves to avoid landing themselves in the foreseen situation. Threat of new entrants/Potential Competitors
Topic Page No. 1. Introduction 3 2. Domino’s Market In India 4 3.
Also by gaining knowledge, you can know what you are interested in or good
This model is considered as the most potent and useful tool and is widely used by organisations. This model deals with external factors that influence the nature of completion and internal factors how firms compete effectively to be more profitable. Porter’s 5 forces is used. Industry Rivalry : Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct competitors as numerous and/or equally balanced competitors may lead to intense competition. The rivalry for market share becomes intense when product differentiation and switching costs are
Effectively, it gives outsiders an ability to judge the motivation of another based on the level of need they are
Porter’s five forces model To analyse the microenvironment facing United Biscuits in China, Porter’s five forces model is selected to provide an understanding of the competitive forces, to determine the competitive position of the company and profitability within the biscuit industry whilst offering a framework for predicting and influencing competition over time (Porter, 2008, p.80). The findings are explained below: Threat of new entrants • The high capital cost required for investing in developing distribution, sales network and acquiring production equipment could deter new entrants. The barriers are high when capital is necessary for unrecoverable expenditures such as marketing and product development capability which is difficult for new entrants to succeed in the short-term (Euromonitor, 2014; Porter, 2008, p.81).
THE THREAT OF NEW ENTRANTS :- I believe that fruit juice industry, the threat of new entrants in the following areas :- Economics of Scale :- In general the economics of scale barriers the entry form or new entrants brined the risk of existing enterprises a strong counter-attack in order to enter the large scale of production. Fruit Juice industry, production lines, excellent processing technology which higher productivity, lower production costs. Industry Counter-Existing Enterprises :- Juice huge market potential, attracting an increasing number of new entrants the market leader in the use of existing resources to counter the strengths, such as control of raw material, increasing the cost of new entrants control terminal sales of the competitors blockade, increasing the cost of sales and other rivals to form barriers to entry. 3.
Secondly, Porter’s Five Forces Model is used to analyse the level of rivalry in the market, the attractiveness for potential new entrants, the power of suppliers, the power of buyers and the threat of substitution. This will allow us to see a holistic view of the industry in the market environment. Thirdly, the PESTLE framework is used to analyse the factors within the macro environment that are influencing
3.2 Industry conditions (Porter 's Five Forces Analysis) Five forces which would impact an organization 's behavior in the market. Understanding the nature of these forces provides organizations the required insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). 3.2.1 Threat of new entrants (high entry barriers) High capital investment for competitor entry into telecommunication industry. Companies in this industry maintain development, spend fairly large amount of capital on network equipment and incurred high fixed costs. Besides, technologies are also considered as barriers for new companies to enter the market.