Strategic Planning: Industry Analysis Worksheet 2 - MGT300

This homework assignment presents an industry analysis worksheet applying the 'five forces of competition model' to assess the attractiveness of an industry, specifically focusing on Tudor boats. The analysis examines competitive rivalry, the threat of new entrants, substitutes, the bargaining power of customers, and the bargaining power of suppliers. Each element is described, along with its impact (low, medium, or high; positive or negative) and supporting evidence. The analysis suggests that while the industry faces some challenges, such as the presence of cheaper substitutes and high customer bargaining power, it also benefits from a low degree of competition and opportunities for growth, particularly in the traditional boats market and international marine transactions. The assignment concludes with a reflection on the industry's attractiveness to the organization, highlighting the potential for leveraging unique features to gain a competitive edge. References to supporting literature are also included.

Strategic Planning Worksheet #2
Industry 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.
Element
Description of the
trend, issue or
change
The impact
will be:
Low,
medium or
high?
Positive or
negative?
Evidence to support this analysis
Competitive
rivalry
 Low degree
of
competition
in the
industry
Moderate As the boat
product
requires
higher
investment
and includes
restrictions
by
government
as well, due
to which the
company has
less
competition
in the market.
Along with
which the
company has
tough
competition
as the
products
present in the
market are
cheaper than
Tudor boats
(Jonathan, &
Wibisono).
Threat of new
entrants
 Few
entrants in
Moderate After reading the study it shall be noted
that there is presence of few
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Element
Description of the
trend, issue or
change
The impact
will be:
Low,
medium or
high?
Positive or
negative?
Evidence to support this analysis
the market.
Few entrant
led threat for
the company
as there is
high
investment
costs.
competitors in the market, but there is
cut throat competition among those
companies. Resulting t which the
company experienced negative growth
rate (LI, & PENG, 2011).
Substitutes  High degree
of
substitutes
present in
the market.
Substitutes
led the
company to
degrade its
growth in the
market.
 Substitutes
having
cheaper rate
products
Substitutes
present in the
market have
cheaper
products
Moderate 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
customers
 More power
enjoyed by
the
customers.
The
customers
easily
switched
between
High
bargaining
power
resulting in
negative
impact for
company
Although there is presence of few
competitors in the market but, the
customer enjoys high bargaining power
due to presence of cheaper products.
This leads them to shift towards
different products to gain more benefit.
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Element
Description of the
trend, issue or
change
The impact
will be:
Low,
medium or
high?
Positive or
negative?
Evidence to support this analysis
different
companies
present in the
market.
Bargaining
power of
suppliers
 Few
suppliers
present in
the market.
This led
suppliers to
enjoy
decision
making
process in
industry
High power
provides
Negative
impact to
company.
With the presence of few suppliers,
they enjoyed higher bargaining power.
Also they switched between the firms
generating greater profits (Wei-feng,
2013).
Question for discussion and reflection: How attractive is the industry to
this organisation?
The industry having attractive specifications leads to growth of the company. The industry is
the first preference of the customers who like using traditional products and marine products
due to which the Tudor boats sale also increases as it is the best company manufacturing
traditional boats.
Also industry is hub for the Australian overseas marine transaction, due to which it gives an
opportunity to the company to grow in the international market. After looking at the study I
realized that the company is not using its resources adequately. Thus it shall be noted that the
company has a wider scope to grow in the marine business and attract more customers with
its unique feature of selling traditional boats.
Further the company also the advantage of not having many substitutes for the product
instead cheap substitutes major cover the market share. Thus it shall be noted that if the
company uses its uniqueness in selling its product then it and gain the competitive edge.
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References
Brady, T., & Hobday, M. (2011). Projects and innovation: Innovation and projects.
Jonathan, I., & Wibisono, D. Journal of Business and Management.
LI, C. N., & PENG, X. W. (2011). Influences of Corporate Culture on Enterprise
Performance [J]. Journal of Yanbian University (Social Sciences), 5, 016.
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Wei-feng, Y. A. O. (2013). Study on the Influence Factors and Its Evaluation in Business
Model Innovation of Enterprises. Journal of Harbin University of Commerce (Social
Science Edition), 2, 016.
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