Organizational Behavior and Leadership In the 21st Century Nov 14
Organizational and global environment
3 years ago
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casestudy3textbook.docx
AssignmentContentnov14.docx
NikeandAppleInc.docx
IndustryAnalysisDraft2ofPortersFiveForces-NikeCompany3.docx
Porters5Forces1and2-AppleCompany4.docx
- NikeCompany-PortersForcesDraftof3Forces2.docx
- Assignment4-PortersForcesDraftof3Forces-Applecompany2.docx
- DereskyChapter6PPderesky_im9_inppt_FORMULATINGSTRATEGY1.pdf
casestudy3textbook.docx
AssignmentContentnov14.docx
Assignment Content
Top of Form
Your assignment this week is to read, analyze, and prepare an analysis based on directions at the end of the reading for Comprehensive Case Study 3 on page 680 in your textbook, Building a Coalition . Your response should be a minimum of 5 pages and with a minimum of 5 references dated between 2018-2023.
The report must be written in APA format. Sources are:
1. American Psychological Association. (2010). Concise Rules of APA Style. 7th ed. Washington, DC: Author. ISBN: 9781433805608
2. https://owl.english.purdue.edu/owl/resource/560/01/
. Report must include a proper cover page, at least five FULL pages of content, and one properly written reference page.
. At least five scholarly references.
. Report must be written in Times New Roman, 12 font, and double-spaced throughout.
. If you have any questions, please email me or call me.
Assignment Grading Rubrics
Quality of work 0 – 50 pts
• Substance
• Grammar
• Subject terminology
• Originality
• Etc.
Research 0 – 25 pts
• Use of scholarly articles to support your views
APA Formatting 0 – 25 pts
• Title page
• Running head
• Abstract page
• Main body
• In-text citations
• Properly written reference page
• Etc.
Total 100 pts
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IndustryAnalysisDraft2ofPortersFiveForces-NikeCompany3.docx
2
Industry Analysis Draft 2 of Porter's Five Forces- Nike Company
Name of Student
Institution
Course
Instructor
Due
Industry Analysis Draft 2 of Porter's Five Forces- Nike Company
Question 1
Rivalry among existing competitors
Existing competitors engage in the various types of competition, such as price cutting, product innovation, marketing campaigns, and service enhancement (Porter, 2008). The extensiveness of competition between firms represents measure of the strength of market rivalry.
(a) Number and names of major competitors
Nike has around 5 major competitors. They are Puma, Adidas, Under Armour, ASICS, and Lululemon.
(b) Industry and Company Growth Rate
In the first quarter of 2024, Nike Inc. has reported a year-over-year increase in revenue of 1.99 percent, to12,939.00 million dollars. This is below Nike Inc.'s previous average Revenue growth of 8.27 percent. According to data from the Apparel, Footwear, and Accessories sector for the first three months of 2024, four other firms have achieved better Revenue growth (CSIMarket, 2023). Nike Inc's 1.99 percent revenue growth places it at #787 in the overall rank.
(c) Entry barriers
Client loyalty, goods differentiation, market share, and a cost benefit are all factors that might make it difficult to break into a market (Rowland, 2023). These aspects are vital for businesses to protect themselves against the influx of new rivals.
(d) Access to distribution
Nike takes advantage of strong distribution systems and well-known partnerships with retailers globally. Because of this, Nike is now in a better position than its competitors.
(e) Differentiation
Nike set themselves apart from the likes of adidas and Puma by developing a sneaker that outlasted its German rivals at a lower price. Also, the company's products are very distinct from the competition (Rowland, 2023). Nike, in particular, began as a manufacturer of sports footwear but now sells much more than just shoes.
(f) Fixed costs vs. variable costs
Expenses that don't fluctuate based on sales or other factors include things like rent, utilities, insurance, depreciation, professional fees, and transportation. Inventory, storage, third-party royalties, profits and losses on foreign currency hedges, R&D, design, and shipping expenses are all examples of variable costs.
(g) Rivalry = High or Low - possibly moderate (Explain why)
High. Nike faces the aggressive marketing methods of competitors (high force). As an additional force multiplier, the market for sports footwear, clothes, and gear is extremely competitive (Rowland, 2023). Furthermore, the sporting goods sector is a strategically tough business environment (high force) due to the minimal market expansion rate because of market fullness.
Question 2
Threat of New Entrants (DEFINE According to Porter)
Prices, expenses, and the rate of investment needed to compete are all affected when new entrants bring additional capacity and a drive to win market share to a sector (Porter, 2008). They become a threat to the existing brands in that industry.
(a) Entry barriers -- government policies/regulations
Rules regarding things like child labor and employment legislation are imposed on the firm’s activities by some regulatory bodies, limiting new entrants from entering the market. A firm’s copyrights on their designs against their competitors are protected by some policies.
(b) Access to suppliers
The new entrants do not have to worry about sourcing materials and launching the business (Review, 2023). It is because there are many suppliers and are easily accessible by new entrants.
(c) Distribution channels--access to
Nike takes advantage of strong distribution systems and well-known partnerships with retailers globally (Rowland, 2023). Since Nike has already built up solid connections with retailers and created a vast distribution network, it is more challenging for new companies to effectively get into the market.
(d) Obstacles that deter new competitors from entering the industry
New entrants have significant challenges, such as increased cost brand formation, the marketing operations necessary to get the good/service to market etc. Nike faces strong competition from a good number of regional rivals, most of whom are based in and have little sway outside of their local market (Review, 2023). Nevertheless, since the firm has huge scale, these firms have limited opportunity of competing.
(e) Threat of New Entrants = High or Low - possibly moderate (Explain why)
Potentially moderate. It takes time and money to build a powerful brand like Nike, and that work often involves low-force tactics like advertising and sponsorship. Furthermore, new entrant (low force) expansion is hindered by the substantial economies of scale required in producing sporting goods (Review, 2023). The market for sports goods is very competitive, yet new entrants have access to marketing and distribution networks. (extreme force).
References.
CSIMarket. (2023). Search for shares, industries, news and economic indicators - CSIMarket. Retrieved November 4, 2023, from https://csimarket.com/stocks/single_growth_rates.php?
Porter, E. M. (2008, January 1). The five competitive forces that shape strategy. Harvard Business Review. https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy
Review, H. B. (2023, May 25). Nike: Porter’s Five Forces industry and competition analysis. Hivelr. Retrieved November 5, 2023, from https://www.hivelr.com/2023/05/nike-porters-five-forces-industry-and-competition-analysis/
Rowland, C. (2023, June 22). Nike Inc. Five forces analysis (Porter’s model). Panmore Institute. https://panmore.com/nike-inc-five-forces-analysis-porters-model#:~:text
Porters5Forces1and2-AppleCompany4.docx
2
Porter's 5 Forces (1 and 2)- Apple Company
Name of Student
Institution
Course
Instructor
Due
Porter's 5 Forces (1 and 2)- Apple Company
Question #1
Rivalry among existing competitors
Industry rivalry manifests itself in the various forms of price cutting, new product launches, marketing initiatives, and service enhancements among enterprises operating in the same market (Porter, 2008). Various companies in the same industry compete for market share.
(a) Number and names of major competitors
Apple Inc. confronts stiff competition from a wide range of tech firms, with around 5 companies standing out as its primary rivals (Ferguson, 2023). Samsung, Google, HP, Sony, and Microsoft are the main competitors of Apple Inc.
(b) Industry and Company Growth Rate
While the Computer Hardware industry witnessed a Revenue loss of just -0.34 percent in the fourth quarter of 2023, Apple Inc. disclosed a decrease of -0.72 percent year over year in sales, to 89.50 billion dollars, which was lower than the 4.22 percent revenue gain in the Technology sector (CSIMarket, 2023). In the fourth quarter, Apple Inc. lagged behind the market even though both the Computer Hardware business and the Technology sector had better increase than the overall market growth (-0.57 percent. Sales for the firm were up 9.41 percent compared to the previous quarter (CSIMarket, 2023). Apple Inc.'s annual sales growth averaged 7.61 percent during the last five years.
(c) Entry barriers
Since the technology sector is so dynamic and competitive, new entrants have a tough time keeping up with giants like Apple (Ferguson, 2023). Furthermore, new rivals find it difficult to join the market due to Apple's high brand awareness, dedicated client base, and substantial resources invested in R&D.
(d) Access to distribution
As part of its supply chain and marketing strategy, the firm employs a multi-channel approach to distribution. To broaden its customer base and supply, the company offers its products via many distribution points.
(e) Differentiation
Apple sets itself apart from the competition by securing patents for its original designs and groundbreaking innovations (Ferguson, 2023). Customers that place a high value on aesthetics and usability prefer Apple, increasing the company's customer retention and growth.
(f) Fixed costs vs. variable costs
Apple has various fixed and variable costs. Depreciation and rent expenses are some of the fixed expenses, while labor and R&D expenses are examples of variable expenses.
(g) Rivalry = High or Low - possibly moderate (Explain why)
High. The aggressiveness of competitors in both innovation and marketing exerts a powerful impact on the IT industry's ecosystem. Moreover, in terms of product differentiation, items in the market are often comparable in serving certain goals (Ferguson, 2023). Customers are able to easily move to other vendors or suppliers, which generates a powerful circumstance. Buyers can effortlessly leave Apple for another firm because of disparities in price, features, availability, etc.
Question #2
Threat of New Entrants (DEFINE According to Porter)
Prices, expenses, and the rate of investment needed to compete are all affected when new entrants bring additional capacity and a drive to win market share to a sector (Porter, 2008). It pertains to the chance that new companies may join the market and compete with the firms that are currently there.
(a) Entry barriers -- government policies/regulations
The government's regulations (such as licensing needs and restrictions on raw material availability) make it difficult for new companies to enter the technology market (Maverick, 2015). For startups entering highly regulated markets like the tech industry, the established players have already optimized their operations to comply with the rules.
(b) Access to suppliers
Long-standing technology firms typically benefit from broad supplier ties and networks. Through these connections, they get entry to high-quality, dependable supplies and components. New entrants may lack such ties and must devote time and effort to create them.
(c) Distribution channels--access to
If a manufacturer or distributor is able to more effectively reach potential retailers for their products via the Internet, they may be able to break into previously inaccessible markets (Maverick, 2015). However, access is not certain because of the high hurdles that exist in fields such as the technology sector.
(d) Obstacles that deter new competitors from entering the industry
Barriers to entrance are common and include things like switching fees, brand loyalty, economies of size and scope, and capital-intensive production (Ferguson, 2023).
(e) Threat of New Entrants = High or Low - possibly moderate (Explain why)
Potentially moderate. It takes a lot of money to begin a firm that can contest with Apple Inc. Also, it is highly expensive to start a strong brand to contest with huge firms, like Apple in the market. Due to these extraneous circumstances, new recruits tend to struggle (Ferguson, 2023). However, there are major corporations with the resources to enter the industry. Thus, the total danger of new entry is minimal.
References.
CSIMarket. (2023). Search for shares, industries, news and economic indicators - CSIMarket. Retrieved November 4, 2023, from https://csimarket.com/stocks/growthrates.php?
Ferguson, E. (2023, April 28). Apple five forces analysis (Porter’s model). Panmore Institute. https://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study
Maverick, J. B. (2015, November 10). Analyzing porter's 5 forces on Apple (AAPL). Investopedia. Retrieved November 4, 2023, from https://www.investopedia.com/articles/investing/111015/analyzing-porters-five-forces-apple.asp
Porter, E. M. (2008, January 1). The five competitive forces that shape strategy. Harvard Business Review. https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy