1. Use the following chart to organize your evaluation to analyze three industri
ID: 406967 • Letter: 1
Question
1. Use the following chart to organize your evaluation to analyze three industries: coffee shops, big-box hardware stores, and automobiles. For each industry, evaluate the strength of each of Porter’s five forces, as well as complements, by filling in a chart for each. Articulate why you feel a particular force is high, medium, or low and why. Refer to Exhibit 3.4 to guide your analysis of whether a force is high.
Industry Forces: High? Medium? Low? Why?
Threat of new Entrants;
Power Of Buyers:
Power of Suppliers:
Power of Substitutes:
Rivalry among competitors:
Complements:
3. Navigate to the threaded discussion below, submit your completed chart and answer the following questions: a. After your overall assessment of the three industries, which one is the most profitable and which one is the least profitable? Explain your rationale for the ranking. Defend your answer with a comprehensive evaluation that demonstrates clear, insightful critical thinking. b. Has this ranking changed over time? How? For each industry, which forces do you expect to change in the future? Explain why. Defend your answer with a comprehensive evaluation that demonstrates clear, insightful critical thinking. 4. Your initial response should be 200 to 300 words in length, include two academic resources that are properly cited, and is due by the end of the fourth day of the workshop.
Explanation / Answer
Answer:
Coffee Shops:
Threat of new Entrants; High
Power Of Buyers: Medium
Power of Suppliers: Low
Power of Substitutes: High
Rivalry among competitors: High
Big Box hardware stoores:
Threat of new Entrants; Low
Power Of Buyers: Low
Power of Suppliers: Low
Power of Substitutes: Low
Rivalry among competitors: Low
Automobiles:
Threat of new Entrants; High
Power Of Buyers: High
Power of Suppliers: Medium
Power of Substitutes: High
Rivalry among competitors: High
The most profitable company is the hardware store as the competition is low in this industry and also the power of buyer is not so much. This makes this company profitable in the initial years and would make the owners to make huge gains in this segment.
These five forces would change in this industry drastically after some time and make it potentially very un attractive to get in.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.