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MGT 300 | Strategic planning - Industry analysis

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Martin Higher Education

   

Logistics Management (MGT300)

   

Added on  2020-03-04

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The next stage of our external analysis is to identify industry characteristics in order to determine if the industry is worth entering or staying in. We do this by applying the five forces of the competition model.

Also check: PART 1- Environmental analysis  AND PART 3-Resources and Capabilities Gap Analysis

MGT 300 | Strategic planning - Industry analysis

   

Martin Higher Education

   

Logistics Management (MGT300)

   Added on 2020-03-04

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Strategic Planning Worksheet #2Industry Analysis The next stage of our external analysis is to identify industry characteristics in order to determine if the industry is worth entering or staying in. We do this by applying the‘five forces of competition model’. Refer to Week 3 learning resources for more information on using the model. ElementDescription of thetrend, issue orchangeThe impactwill be:Low,medium orhigh?Positive ornegative?Evidence to support this analysisCompetitive rivalryLow degree of competition in the industryModerate As the boat product requires higher investment and includes restrictions by government as well, due to which the company hasless competition in the market.Along with which the company hastough competition as the products present in themarket are cheaper thanTudor boats (Jonathan, & Wibisono).Threat of new entrantsFew entrants in Moderate After reading the study it shall be notedthat there is presence of few competitors in the market, but there is MGT300_Assessment1_Worksheet2Last updated on 3-Mar-20Study Group Australia Pty Limited trading as Martin College, Martin Higher EducationPage 1 of 5
MGT 300 | Strategic planning - Industry analysis_1
ElementDescription of thetrend, issue orchangeThe impactwill be:Low,medium orhigh?Positive ornegative?Evidence to support this analysisthe market.Few entrant led threat for the company as there is high investment costs.cut throat competition among those companies. Resulting t which the company experienced negative growth rate (LI, & PENG, 2011).SubstitutesHigh degree of substitutes present in the market.Substitutes led the company to degrade its growth in the market.Substitutes having cheaper rateproductsSubstitutes present in themarket have cheaper productsModerate Now a day’s yachts and motor boats are majorly used in the market instead of traditional Tudor boats as they generate greater expenses for the customers. Other substitutes are easy to maintain due to which people changes their choices from Tudor boats to motor bikes etc.Because of having substitutes with cheaper products in the market, they attract more customers which act as a treat for the company (Brady, & Hobday, 2011).Bargaining power of customersMore power enjoyed by the customers.The customers easily switched between High bargaining power resulting in negative impact for companyAlthough there is presence of few competitors in the market but, the customer enjoys high bargaining powerdue to presence of cheaper products. This leads them to shift towards different products to gain more benefit. MGT300_Assessment1_Worksheet2Last updated on 3-Mar-20Study Group Australia Pty Limited trading as Martin College, Martin Higher EducationPage 2 of 5
MGT 300 | Strategic planning - Industry analysis_2

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