a fresh look at industry and market analysis

a fresh look at industry and market analysis插图

Why augmented industry and market analysis?

Today’s strange, new business world needs an augmented model of industry and market analysis that reflects recent developments in industry dynamics, such as globalization, entrepreneurship, technological advances, and the Internet.

Do traditional approaches to financial analysis have too much emphasis?

Traditional approaches to financial analysis have placed too great an emphasis on risk reduction. Consequently, many businesses invest primarily in incremental product modifications and market expansion. Although the initial results from this investment strategy may be acceptable, these initiatives do little to position the firm for the long term.

Why must market analysis consider the rate and unpredictability of change?

Thus, market analysis must consider the rate and unpredictability of change because these will influence profitability, strategy formulation, and strategy content.

How is a market orientation reflected in behavior?

Thus, a market orientation is reflected in behaviors that enable the business to learn from current and potential customers about their existing and latent needs, and to act in an entrepreneurial manner to create superior customer value.

What was the median return on sales in 1999?

In 1999, the median return on sales (ROS) for the U.S. Fortune 500 was 5 percent. A 2 percent price cut A fresh look at industry and market analysis would produce an ROS of 3.5 percent (assuming a 30 percent tax rate), resulting in 30 percent less total profit if no additional sales were generated.

What are the factors that influence competitive strategy?

Industry factors influence competitive strategy. A common meaning of competitive strategy is that it is the set of actions, including the development and deployment of resources, that position the business to both exploit opportunities and avoid threats in its markets.

What is the first step in market research?

The first step in an analysis, then, is to define a group of buyers who have a relatively homogeneous need. Standard market research techniques such as focus groups, survey research, and conjoint analysis, among others, are appropriate for this task.

What is market in business?

A market is where buyers and sellers meet to execute an exchange. More precisely, it is where buyers who have similar needs meet sellers who have "products" that provide benefits to satisfy this need. (For convenience here, we use "product" to represent products and/or services.)

What are the forces of competition?

The competitive forces are: (1) threat of new entry into an industry; (2) intensity of rivalry among existing competitors; (3) pressure from substitute products; (4) bargaining power of buyers; and (5) bargaining power of suppliers. Since the introduction of this model, a substantial body of research has been compiled that …

Why are price cuts matched?

Because price cuts can be quickly, if painfully, invoked, they can be quickly matched, which gives the firm initiating the cut only a temporary advantage and market share increase. After price cuts are matched by competitors, total industry demand would have to increase by the entire 40 percent.

When are industry average returns on capital most likely to exceed the cost of capital?

However, industry average returns on capital are most likely to exceed the cost of capital when sellers address the needs of the early majority. Although high growth rates may have occurred during the phase when early adopters accepted and used the innovation, much of the growth will be unprofitable.

What is an effective organization?

Effective organizations are configurations of management practices that facilitate the development of the knowledge that becomes the basis for competitive advantage. A market orientation, complemented by an entrepreneurial drive, provides the cultural foundation for organizational learning. However, as important as market orientation and entrepreneurship are, they must be complemented by an appropriate climate to produce a ”learning organization”. The authors describe the processes through which organizations develop and use new knowledge to improve performance. They propose a set of organizational elements that comprise the learning organization and conclude with recommendations for research to contribute to the understanding of learning organizations.

What is Porter’s industry forces framework?

Porter’s industry forces framework is an important tool for external analysis of firms, but its qualitative nature presents numerous limitations to be used in investment analysis. This study introduces a quantitative perspective of the framework using financial information proxies. This allows investors to gauge the external factors quantitatively and to gain enhanced framework usability. In order to test its validity, the correlation movements of our quantitative perspective have been analysed. For demonstration of enhanced usability, our quantitative perspective, alongside machine learning models, was used to predict business performances. The empirical results indicate that our quantitative perspective of the framework corroborates with its original definition and that it exhibits enhanced usability than the original framework.

What are the three major groups of products in grocery shopping?

Following the literature on consumer grocery shopping, three major groups of products are considered: food/drink, cleaning, and personal care . Applying Finite Mixture Modeling to a rich scanner dataset, latent classes of customers and their choice of grocery items on different days of the week are discovered and empirically validated. The model controls for consumer unobserved heterogeneity and demographic characteristics through mixing probabilities. Results uncover latent classes of grocery shoppers and their day of the week shopping day, their sizes, their product choices, mixing probabilities, and demographics. Findings offer retail promotion targeting guidelines for the identified latent classes in the food/drink, cleaning, and personal care groups. Analysis outcome provides marketing and managerial implications in identifying grocery store segments, handling store traffic, managing store promotion and pricing, and improving store layout.

What is SCP in management?

The traditional approach of the former is the Structure-Conduct-Performance (SCP) paradigm, which focuses both on industry-level determinants of competition (mainly industry’s concentration) and on an interaction between industry-and firm-level determinants such as economies of scale, product differentiation and entry and exit barriers (Feeny et al, 2005; Slater and Olson, 2002). …

How does multichannel marketing work?

In addition, multichannels allow customers to reach businesses by using their preferred channel (e.g., Internet, salesforce, or value-added reseller). The advantages of reaching increasing number of customers through multiple channels (e.g., sales, trial, profit) are partially offset by two potential negative effects of multiple channels. First, multiple channels create conflict that may dissuade some channels’ members from carrying the firm’s product. Second , with an increase in the number of channels carrying the product, the sales derived from each new channel drops making it difficult for a firm to recover its costs. Based on these considerations, the paper provides a framework that will allow firms to develop optimal channel mix in multichannel environments. We test the framework in the context of a software firm and provide academic and managerial implications.

What is urban transport?

Urban transport is the lifeblood for any urban area in the modern era. As urban areas are expanding, commuters spend increasing amounts of time to travel within the city. They are also exposed to congestion of traffic and inhale polluted air, besides spending a lot of money individually. In doing so, an individual is exposed to risk of accident as well. Ahmedabad in India has been shortlisted by the government of India to be transformed into a ‘Smart City’; the city therefore requires an efficient urban transport system. Already multiple modes of transport are used in Ahmedabad. The BRTS (Bus Rapid Transport System) is the latest addition to this category, which promises to deliver an efficient, economical and comfortable mode of transport for commuters in the city and surrounding expanse of Ahmedabad. Hence, this paper analyzes industry competitiveness and profitability, two very important dimensions to decide the fate of participants and potential entrants in any industry. The industry in consideration is the urban public transport industry in the city of Ahmedabad, Gujarat, in India. Porter’s five forces namely threat of new entrants, bargaining power of buyers, threat of substitute products or services, bargaining power of suppliers, and rivalry among existing competitors have been analyzed keeping the urban public transport industry of Ahmedabad at the centre stage. The analysis reveals that these forces have varied strengths; most of them have strengths ranging from medium to high. Hence, the industry in consideration is highly competitive and unprofitable. In the final stage, to improve competitiveness and profitability of the urban public transport industry in Ahmedabad, the authors recommend various measures related to route rationalization, creating differentiated services, taxing the users of personal vehicles and inter para transit players for not compensating for the costs they levy on the society by using public infrastructure. The analysis could be used by policy makers, urban local bodies, companies, researchers, and academia interested in urban public transport industry. For Full Paper Drop me an email: [email protected]

Why did Delta acquire an oil refinery?

Delta Air Lines acquired an oil refinery in April 2012 as a strategic move to hedge against higher fuel prices. Our paper analyzes the impact of the oil refinery acquisition, a backward integration strategy, on the airline’s financial and operational performance, for the period Q1 2010 to Q2 2015, and we argue that the resource dependence theory best explains Delta Air Lines’ acquisition. The methodology involves descriptive statistics and short-term stock performance as well as an econometric model that estimates the impact of the oil refinery acquisition on Delta Air Lines’ net income. The data set consists of quarterly financial and airline operations metrics data. The results indicate that it is too early to ascertain whether Delta Air Lines’ oil refinery acquisition has any positive impact on its financial performance since the variable of interest is insignificant in predicting the airline’s net income. Despite the apparent lack of positive impact of its oil refinery acquisition, however, the stock market has rewarded Delta Air Lines’ strategy resulting in its share prices outperforming the S&P 500 and the XAL, an index of major airline stocks, in the 60-trading day period following the announcement of its acquisition.

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