Porter’s 5 Forces Category: Potential Competitors
BUS433 – Strategic Services Management
Case Study #2
Value = 10%
Description
This is an individual assignment. Complete both Parts A and B in the same document, making sure that each section is clearly labelled.
Choose a hospitality or tourism related company and use this same company to complete both parts of this assignment.
Part A:
Based on what you have learned in the course and your own analysis, pick ONE of the categories in the Porter’s 5 Forces model and analyse the company you have chosen for the overall risk or threat level in that one area. Be sure to use all the criteria (if there is more than one) when making your final assessment. You should include the following information:
1. Identify which of the Porter’s 5 Forces category you chose to analyse.
2. Identify the overall risk or threat level (ie. high, moderate, low, etc.). Be sure to evaluate all relevant criteria for the category you chose to analyse.
3. Provide reasoning for your assessment. Be sure to explain your analysis thoroughly.
Example:
Company: Hilton
Porter’s 5 Forces Category: Potential Competitors
I think the overall risk level for potential, or new, competitors is low because….
Part B:
Consider the following PESTE categories as explained in the lesson:
Political/legal
Economical
Sociocultural
Technological
Ecological
If necessary, review the lesson for more information on the specific variables that are included under each category.
Based on what you have learned in the course and your own analysis, pick ONE of the PESTE categories and analyse the company you have chosen (the same company you used for Part A) for factors in this category that could affect their business-decisions, profitability, etc.
Include the following information:
1. Identify which PESTE category you chose to analyze
2. Explain what specific factors within that category would apply to the company you chose, making sure you include information on how those factors would impact the company. Be as thorough as possible in your analysis and explanation.
Example:
Company: Hilton
PESTE Category: Political/Legal
The government’s mandatory minimum wage increase in recent years has impacted Hilton with respect to increasing labour costs and recent talks of imposing a new hotel tax could further impact Hilton’s profitability….
Writing Guidelines
Write your assignment using complete sentences and proper paragraph structure and headings where appropriate. Use correct grammar, spelling, and syntax. Include a cover page, and proper bibliography and in-text citations, where necessary.
Spelling and grammar do count so make sure that you leave enough time to have someone review your assignment to help you fix any problems.
If you find information from another source, be sure to cite your sources accordingly with a proper Bibliography AND in-text citations. Each outside source that you use must be cited as both an in-text citation AND in the bibliography. Please review all of the content under the Academic Integrity folder under the Course Information menu tab.
http://library.senecacollege.ca/Research_Help/Citing_Sources/index.html
Submission Instructions:
Assignments will be submitted online through the Assignments menu tab in MySeneca by the specified due date.
Assignments are submitted on MySeneca through SafeAssign, which is a tool that checks for plagiarism. For more information on how SafeAssign works, please see the “APA Citation – Reminder and Review” link under the Academic Integrity folder under the Course Information menu tab.
Case Study #2
Name BUS433 – Strategic Services Management
Seneca College
Instructor Date
Part A:
Company: Starbucks Corp (SBUX)
Porter’s 5 Forces Category: Potential Competitors
The overall risk of competition is high, but still, Starbucks is a known and reputable brand, and it is a market leader in the specialty coffee retail market in the U.S. Starbucks. Nonetheless, Starbucks has a strong network and revenue growth in the Americas segment. Besides product sales, there are royalties and licensed revenues. Starbucks's presence in different markets allows the company to leverage the economies of scale, serve a larger customer base. There are both company-operated stored and licensed stores outside the domestic market in North America. Among some of Starbucks ' competitors are Costa Coffee, McDonald's, Café Coffee Day, Dunkin' Donuts, Tim Hortons, Barista Coffee, Peet's Coffee, Caribou Coffee, and McDonald's (Owler, n.d.). The demand for the retailer’s products and services has led Starbucks to establish itself in areas with high foot traffic and easily accessible, improving its competitiveness.
Economies of scale, product differentiation, and access to distribution channels are some of the factors that give Starbucks a competitive edge over the rivals. However, many competitors mean that there may be a slowdown in the growth prospects if the others grow faster at Starbucks' expense. The company has a wide brand portfolio with the fast-casual brands among the most popular in the industry, like other competitors who have innovated, met customers’ needs, and exceeded their expectations. There is also a focus on providing quality products and services. Starbucks is ISO 9001 certified. The certification is associated with the provision of products and services to meet customer needs and regulations. Starbucks' reputation and leadership are based on selling h...
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