For the first case you are to do an external analysis of the industry in which the company competes. Your paper must be no longer than 5 double-spaced pages (12pt font). Please write in complete sentences, using proper grammar and spelling, but remember, this is a report – not an essay. Use Chapter 3 concepts to guide your work. The format/subheadings must be as follows:
1. Major economic features of the industry, including, but not limited to market size, market growth rate, number of rivals, scope of rivalry, number of buyers etc. (Text Table 3.1). Describe only those features that are relevant to the case.
2. The industry’s competitive (five) forces. You must discuss all five forces. Make sure to properly identify rivals, supplies/suppliers, buyers, and substitutes. Don’t forget to asses the strength of each force. Make sure you identify two or more factors that support your strength assessment (each with an example from the case) (Text Figures 3.3 – 3.8). You should use the format below to guide your writing.
a. Rivalry in the industry is____________ (strong, weak, or moderate) because___________.
b. Suppliers to the industry provide_(what?)_____. They are (strong, weak, or moderate) __________, because___________.
c. Buyers of the product are__(who?)______. They are__________ (strong, weak, or moderate), because____________.
d. Substitutes are ____(what?)_____. They are _________(strong, weak, or moderate), because____________.
e. Threat of entry of new competitors is __________(strong, weak, or moderate), because_________. The barriers to entry are _(what?)_____.
3. Factors that are causing major long-term industry change (driving forces). Please identify the appropriate categories and provide an example from the case for each category (Text Table 3.2). This section should discuss at least 3 driving forces.
4. Key success factors. Please identify the relevant types of key success factors and provide an example from the case for each type (Text Table 3.3). This section should contain at least 3, but no more than 6 key success factors.
Proper spelling, grammar and formatting, paper length, appropriate style and word choice, section headings, fonts and margins.