MGMT 4020 June 24, 2013 Homework Assignment #2 Competition is very high in the North American wholesale club industry. Every wholesale club wants to sell top-quality products at prices less than others in order to attract draw customers. And they all want to display low prices on pallets or inexpensive shelving, therefore, they have very low costs for store decor and fixtures, have comparatively low labor costs, and spent minimally on advertising and customer service. Five Forces Analysis 1. Bargaining Power of Buyers is moderate.
More often, such successful startups end up being bought up and consolidated. Barriers to entry: The enterprise software business has a high barrier for entry due to the following - High capital requirements High sunk costs limit competition Strong brand names are important Industry requires economies of scale Advanced technologies are required Patents limit new competition Customers are loyal to existing brands All of these work favorably for Oracle. Power of suppliers: In general, the software industry does not have many external supplier requirements. If any, the requirements are commodities. Inputs have little impact on costs High competition among suppliers This plays favorably for Oracle.
If a customer does not have enough or proper computer tools and equipment it will affect the OMM by preventing it from producing enough finished products. McDonalds is another company that has an organized operating system that is designed to give them a competitive advantage. Even though they do not use advanced technology, their whole in-store system is ran by computers. Like every other company, organization is the key that keeps this company alive. For instance, if a customer’s order gets messed up or out of place then that messes up the other orders as well.
• Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like cholesterol.com has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision?
 There would be a moderate level of effect on rivalry from this force because other companies, as well as IBM, are always coming up with new ideas.  An example would be if Microsoft came out with a better version of IBM’s middle ware. o Bargaining power of buyers  Buyers have the power to use competing companies against each other through price, quantity and quality to satisfy what they demand.  There would be a high level of effect on rivalry from this force because companies want to give their customers what they want.  An example would be a customer stating that they will leave IBM if they cannot match a competitor’s price.
The innovation and the technology advances help Apple win in the competition. 2. Threat of new entrance: low The strong branding awareness of the existing companies and the high starting investment prevent the entry of the new competitors. 3. Threat of substitute products: high Although there are many substitute products in the market, the Apple products are differentiated from others.
Threat of Substitutes: Management consulting firms are one of the threats for substitution. (“Management Consultants doubled as potential clients as well as direct competitors in terms of offering digital strategy”, p.9, para 2). Another outside industry threat is the IT firms. (“Huge found itself pitching against an IT company who were offering many of the services as Huge” p.9, para 3). Another threat of substitute could be companies hiring in house people to save costs, in which case they will have to compete with them in terms of attracting talent as well.
Walmart sells many items at ridiculously low prices. They are able to offer low prices on their items due to an incredible mark-up on imported products. Especially in today's economy, the buck is the big winner. Everyone wants to save money, and they can do that by shopping at Walmart, where many items are the lowest price in town, even if it's only by a few pennies. But consumers aren't helping their fellow countryman earn his own living by buying these imported items.
Evaluation helps to measure what parts of the planning were a success or failure (Gerhart, Hollenbeck, Noe, & Wright, 2014). Review/Analysis of the Case In Yahoo’s case, these steps should not be taken lightly. The company is severly understaffed due to losing employees to other companies. Filling these high tech positions will be hard for them considering they have a lower employee rating than other companies, such as Facebook and Google. This can lead to potential employees not giving Yahoo a second look.
* Specialization – utilizing the efficiency and knowledge of persons specializing in supply chain management * Virtual company – relying on a variety of supplier relationships to ensure the product is produced on time and within the demands of the customers * Using the latest computer and transmission technologies to schedule and manage the shipment of parts in and finished products out, would help to increase the efficiency of the company. Other possible techniques would not be suitable for Regal Marine: for example a vertical integration strategy would require a very high investment, and would be unsuitable for the boat manufacturing rapidly improving technology. Also, a many suppliers strategy results in sporadic deliveries of high quantities, which would clearly increase required inventory and eliminate the “just in time” advantage which Regal has. 2. What kind of response might members of the supply chain expect from Regal in response to their "partnering" in the supply chain?