Case Write-Up: External Analysis
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CopiadeIndustryAnalysisTemplate.xlsxFocal Industry
| Provide a Clear Title and Definition of your Focal Industry (industry of study) |
Buyers
| Buyer Power is High | Who are the buyers? List Names and/or Categories of Buyers | Data Sources | ||
| If | Does this apply to the industry you are studying? | State why and give evidence/data | Data Sources | |
| Yes/No | ||||
| Price sensitivity of buyer is high because: | ||||
| Cost of focal industry product relative to total costs of buyers is high, or | ||||
| Product differentiation of focal industry products is low, or | ||||
| Competition between buyers is high. | ||||
| and/or | ||||
| Relative bargaining power buyers is high because: | ||||
| Size and concentration of focal industry firms relatives to buyers is high, or | ||||
| Buyers face little if no switching costs, or | ||||
| Buyers know and understand well the cost structure of suppliers, or | ||||
| Buyers can easily integrate backward. | ||||
| Other |
Suppliers
| Supplier Power is LOW | Who are the buyers? List Names and/or Categories of Buyers | Data Sources | |||
| If | Does this apply to the industry you are studying? | State why and give evidence/data | Data Sources | ||
| Yes/No | |||||
| Price sensitivity of focal industry is high because: | |||||
| Cost of supplier product relative to total costs of focal industry products high, or | |||||
| Product differentiation of supplies low, or | |||||
| Competition between focal industry players is high. | |||||
| and/or | |||||
| Relative bargaining power of focal firms is high because: | |||||
| Size and concentration of focal industry firms relatives to suppliers is high, or | |||||
| Focal industry firms face little if no switching costs, or | |||||
| Focal industry firms know and understand well the cost structure of suppliers, or | |||||
| Focal industry firms can easily integrate backward. | |||||
| Other |
Rivalry
| Rivalry is High | Who are the buyers? List Names and/or Categories of Buyers | Data Sources | |||
| If | Does this apply to the industry you are studying? | State why and give evidence/data | Data Sources | ||
| Yes/No | |||||
| Rivals are homogeneous | |||||
| Little product differentiation exists | |||||
| There is excess capacity and barriers to exit | |||||
| There are high scale economies or the ratio of fixed to vartiable costs is high | |||||
| Industry Concentration is high | |||||
| Other |
Entry
| Threat of Entry is Low | Who could be potential entrants in this industry (list company names and/or categories of firms)? | Data Sources | |||
| If | Does this apply to the industry you are studying? | State why and give evidence/data | Data Sources | ||
| Yes/No | |||||
| Economies of scale (EOS) are present (specify in which stages of the value chain EOS exist) | |||||
| Existing products are highly differentiated | |||||
| Channels of distribution are preempted or difficult to access | |||||
| Incumbents have an absolute cost advantage | |||||
| Government and legal barriers exist | |||||
| Retaliation by established competitors is likely | |||||
| High capital is needed to start | |||||
| There are high scale economies or the ratio of fixed to vartiable costs is high | |||||
| Other |
Substitutes
| Substitute Threat is High | Who are the buyers? List Names and/or Categories of Buyers | Data Sources | |||
| If | Does this apply to the industry you are studying? | State why and give evidence/data | Data Sources | ||
| Yes/No | |||||
| Buyers have a high propensity to substitute | |||||
| The relative price and performance of substitutes is high |
Complementors
| Complementors are products that can encourage or discourage the sale of your products. | ||||||
| Examples: | Hot dog buns complement hotdogs, when hot dog buns go on sale hot dog sales rise. | |||||
| Apps complement phone, more apps on a platform implies more sales; but if say Apple I/OS is elminated lots of app companies could go about of business | ||||||
| Are Complementors Adding value to your Business or reducing your value creating potential? | List Complementors if Any | |||||
Overall Industry Conclusions
| Industry Analysis Conclusion | ||||||||||||||
| Choose One | Choose One | 1 Poor | 2 | 3 | 4 | 5 Average | 6 | 7 | 8 | 9 | 10 Very attractive | |||
| This industry is | attractive | On a scale of 1-10 this industry's attractive is | ||||||||||||
| unattractive | ||||||||||||||
| List all the reasons that make this industry the way it is | I made my conclusion Despite: (List the reasons that may contradict your overall conclusion) | |||||||||||||
| Because | 1 | 1 | ||||||||||||
| 2 | 2 | |||||||||||||
| 3 | 3 | |||||||||||||
| 4 | 4 | |||||||||||||
| 5 | ||||||||||||||
| WHAT CAN BE DONE TO REVERSE NEGATIVE FORCES IN FAVOR OF INDUSTRY PLAYERS? | ||||||||||||||
| 1 | ||||||||||||||
| 2 | ||||||||||||||
| 3 | ||||||||||||||
| WHAT CAN BE DONE TO CAPITALISE ON POSITIVE FORCES IN FAVOR OF INDUSTRY PLAYERS? | ||||||||||||||
| 1 | ||||||||||||||
| 2 | ||||||||||||||
| 3 | ||||||||||||||
| The above forms the basis of what you include in your write-up |
