Stage of the product life cycle
Remember, this is an industry analysis not a company analysis. Therefore, limit the amount of specific company (organizational) information. The specific company i choose is Walmart. You need to analyse and adequately address each of the areas provided below.
A. Factors that influence cost structures and profitability
1. Stage of the product life cycle. (Stage of the product life cycle affects pattern of investment, cash flows, and profitability.)
2. Competitive environment. Thoroughly analyze and discuss Porter’s Five Forces of Industry Competition. Explain effects on costs and profitability.
B. Opportunities in the industry. Using your analysis of the industry, prepare a thorough list of opportunities in the industry. For example, weak competitive rivalry would be an opportunity in the industry. Be sure to explain why each is an opportunity for the industry. Examples may include:
1. Serving additional customer groups/expanding into new markets
2. Expanding the product line
3. Integrating forward or backward
4. Complacency among rival firms
5. Strong increase in market demand
6. Favorable demographic, social, cultural, technological trends
C. Threats in the industry. Using the industry analysis completed to this point, prepare a thorough list of threats in the industry. For example, a strong competitive rivalry would be a threat in the industry. Be sure to explain why each is a treat to the industry. May include:
1. Entry of lower-cost foreign competitors
2. Rising sales of substitute products
3. Slower market growth
4. Adverse shifts in foreign exchange rates or trade policies
5. Adoption of new governmental regulations affecting the industry
6. Strong bargaining power of customers or suppliers
7. Changing buyer needs or tastes
8. Adverse demographic, social, cultural, technological trends
Again, please remember this is INDUSTRY ANALYSIS not company analysis. At the minimum, you should use 10 external references, 7 should be non-free web.