Listed is clarifying guidance. Use the Project 2 template located in week 4.
This project provides you with the opportunity to evaluate the competitive position of one of the organizations listed below and integrate that information in a partial SWOT (OT), Porter’s Five Forces, External Factor Evaluation (EFE) matrix and Competitive Profile Matrices (CPM).
A. Use these resources as a minimum:
Research for Financial Analysis: Financial Research
Research for Industry Analysis CSI Market
Mergentonline
Course textbook:
Saylor. (2012). Mastering Strategic Management.
B. Industry Analysis
The five forces identified by Porter are divided into:
Horizontal forces: Threat of substitutes, threat of new entrants, competitive rivalry
Vertical forces: Bargaining power of buyers and bargaining power of customers
Include at least 2 of the factors under each force for your analysis:
Competitive Rivalry
- Similar sized companies operate in one market
- These companies have similar strategies
- Products on offer have similar features and offer the same benefits
- Growth in the industry is slow
- There are high barriers to exit or low barriers to entry
Threats of New Entrants
- Patents and proprietary knowledge
- Access to specialized technology or infrastructure
- Economies of scale or government driven obstacles
- High initial investment needed
- High switching costs for consumers, loyal consumers
- Difficulty in accessing raw material and difficulty in accessing distribution channels
Threat of Substitutes
- Lower prices
- Brand loyalty
- Switching costs relative to prices
- Trends and fads
Bargaining Power of Buyers
- Ability to buy in bulk
- Able to easily switch supplier
- Availability of multiple similar suppliers
Bargaining Power of Suppliers
- Less available suppliers
- Costs of switching is too high
- There are no alternates
- Supplier may unique patent and/or proprietary knowledge restrictions
C. Competitive Analysis
Pick 3 similar companies using information from Mergentonline.
Complete the Competitive Profile Matrix (CPM). Follow the link to the instructions (It has the how to build the table and a list of critical success factors)https://www.strategicmanagementinsight.com/tools/competitive-profile-matrix-cpm.html
D. Partial SWOT Analysis
Create an OT Table (5 threats and 5 opportunities). Do an analysis of the information contained in this table as it relates to the company that you were assigned.
E. External Factor Evaluation (EFE) Analysis
The External Factor Evaluation (EFE) matrix will allow you to use the information from the industry analysis and the competitive analysis to assess whether the focal company is able to effectively take advantage of existing opportunities while minimizing the identified external threats in conjunction with the OT analysis to create an EFE matrix to help you formulate conclusions. You can create your own table or use the following table:
External Factors
Weight
Rating
Weighted Score
Rationale
Threat 1
Threat 2
Threat 3
Threat 4
Threat 5
Opportunity 1
Opportunity 1
Opportunity 1
Opportunity 1
Opportunity 1
Step 1: List the items from the OT table.
Step 2: Assign weights (0-neutral impact, 1=more impact, 2=most impact on the company)
Step 3: Assign rating (1,2, 3, 4, 5 based on importance to the survival of the company; 1 is least and 5 is the most)
Step 4: Calculate weighted score by multiplying weight times rating.
Step 5: Provide a rationale for the factor and weighting.
Step 6: Based on the table, provide an analysis of each factor by determining if (1) the company is taking advantage of the opportunities and minimizing risks (see industry and competitive analysis factors) or (2) Avoiding threats and minimizing risks (see industry and competitive analysis factors).
Remember to cite per the APA, include references page and add pages numbers
