6 C5 Porter's Cost Analysis IBM130 Template(1) - Word Parikshit Khunt PK X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share do Cut Arial - 13.5 - A A Aa A Copy AaBbCcDd AaBbCcDd AaBbC( AaBbCct Aa B Find AaBbCCD AaBbCcDd AaBbCcDd AaBbCcDd Bac Replace Paste Format Painter BIU~ abe X2 x AZA. 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Select Clipboard Font Paragraph Styles Editing i GET GENUINE OFFICE Your license isn't genuine, and you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Get genuine Office Learn more IBM130 - COMPETITIVE ANALYSIS - PORTER'S 5 FORCES FRAMEWORK + 1 PORTER'S AND COST ANALYSIS ASSIGNMENT GROUP ASSIGNMENT #2 - COMPLETE THE FOLLOWING FOR THE 2 REMAINING COUNTRIES Part One: Porter's Analysis. Answer the following questions for both of your remaining target countries Question 1: Identify your product 6 digit HS code and define the section, heading, and subheading. Question 2: Identify any tariff and non-tariff barriers you will encounter in your possible target markets. Question 3: Who are your competitors? What is the degree of rivalry in your industry? Identify the major firms, what can you learn about their profits, sales, offerings, market share, customer demographics. Question 4: What threats do new competitors pose to firms operating in your industry? Question 5: What power do buyers have in your industry? Describe the main buyers, locations, # of stores, if they specialize in anything? Annual sales etc. Do a deep thorough research. Question 6: What products from another industry (substitutes) could create (or currently is) competition in your industry? Question 7: Do complementors exist in your industry, and if so, what is the effect on profits? Page 1 of 6 1290 words E English (United Kingdom) * Accessibility: Investigate + 100% 24 C 00:30 Clear OLDO 0 ENG IN 17-06-2022Porter's Cost Analysis lBM'l 30 Template-Ii) - Word Insert Draw Design Layout Referentes Mailings Review View Help 9 Tellnlewllatyouwanttu do Sim Anal v 13.5 . A' A' 2 [0 ,, Paste E p, B . \"Formalminler AaBbCEDd ll Normal Title Subtitle Subtle Em.. ll No Spas... Heading 1 Heading 2 Iuvalesxax' ram E Styles Clipbaard 5 Paragraph E 0 GET GENUINE OFFICE Vour license isn't genuine and you may be a victim of software counterfeiting. Avoid interruption and keep your files Safe with genuine Office today. Get genuine Office Learn more Part Two: Cost Analysis and Viability of Transaction Study for each of the markets Step One: Complete a costing sheet as if you were shipping your product to each of the target countries. Assume for the purpose of the exercise you were operating under DDP terms. Provide source material to justify the costs you anticipate for your product for the indicated fields in the costing sheet provided below. Calculate all costs as if you were shipping 1 20-foot container of your product. Step Two: Provide an Analysis of the market variables like the one shown in your textbook for the Hong Kong Screwdriver Case in Module 1 Unit 1. You must cover all 3 variables for your target markets. Variable 1: Environmental Variable 2: Market Variable 3: Internal Determine based on the analysis of the variables which of the pricing strategies your company will pursue in that market and why? Step Three: Based on the costing sheet and pricing strategy you adopted do you believe that the target market will be viable for your product? Yes or No and Why? Pagezal lzsowards [E 24": J Clear English (united Kingdom) (tiAtcessibilhy investigate Emphasis A AaBbCEDd AaBbQ AaBchE AaB AaBchD AoBbCL'Dd AuBchDd AaEbCeDd _ Intense E. . 7 :1; Shale ,0 Find . 5!; Replace ' k Select . IE Editing A Q: 7|+ 10096 00530 17-06-2022 a ENG IN reams 6 C5 Porter's Cost Analysis IBM130 Template(1) - Word Parikshit Khunt PK X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share do Cut Find Arial - 13.5 - A A Aa A AaBbCcDd AaBbCcDd AaBbC( AaBbCct Aa B AaBbCCD AaBbCcDd AaBbCcDd AaBbCcDd Copy Bac Replace Paste BIU~ abe X2 x AZZA . 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Format Painter Select Clipboard Font Paragraph Styles Editing i GET GENUINE OFFICE Your license isn't genuine, and you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Get genuine Office Learn more Table of Contents Product Introduction Description ......... Intended Customers .......... Sizes and Formats ... ........ # Industry Segment of your Product... Country #1 Porter's Analysis Tariff and Non-Tariff Barriers ....... .. # Competitors...... Threat of New Entrants ......... Buyer Power ....... Substitutions .... Complementary Products........ Cost and Pricing Analysis Costing Sheet .......... Costing Sheet Supporting Data ............................" Environmental Factors .... Market Factors .......... Internal Factors .......... Pricing Strategy ..... Conclusion on Viability in (Country Name) ............. Page 3 of 6 1290 words E English (United Kingdom) * Accessibility: Investigate + 100% 00:30 24 C OLDOF W ENG IN Clear 17-06-20226 C5 Porter's Cost Analysis IBM130 Template(1) - Word Parikshit Khunt PK X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share do Cut Find Arial - 13.5 - A A Aa A AaBbCcDd AaBbCcDd AaBbC( AaBbCct Aa B AaBbCCD AaBbCcDd AaBbCcDd AaBbCcDd Copy Bac Replace Paste BIU~ abe X2 X AZA. E 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Format Painter Select Clipboard Font Paragraph Styles Editing i GET GENUINE OFFICE Your license isn't genuine, and you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Get genuine Office Learn more Country #2 Porter's Analysis Tariff and Non-Tariff Barriers ....... ... # Competitors...... Threat of New Entrants ...... Buyer Power ......... Substitutions.... Complementary Products........ Cost and Pricing Analysis Costing Sheet .......... Costing Sheet Supporting Data ...................."."; . # Environmental Factors .... Market Factors .......... Internal Factors .............. Pricing Strategy ..... Conclusion on Viability in (Country Name) .......... Appendices .............. Bibliography ......... Page 4 of 6 1290 words X English (United Kingdom) * Accessibility: Investigate + 100% 24 C OLDOE W ENG 00:30 Clear IN 17-06-20226 C5 Porter's Cost Analysis IBM130 Template(1) - Word Parikshit Khunt PK X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share do Cut Find Arial - 13.5 - A A Aa A AaBbCcDd AaBbCcDd AaBbCc AaBbCct Aa B AaBbCCD AaBbCcDd AaBbCcDd AaBbCcDd Copy Bac Replace Paste BIU~ abe X2 x AZZA . 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Format Painter Select Clipboard Font Paragraph Styles Editing i GET GENUINE OFFICE Your license isn't genuine, and you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Get genuine Office Learn more EXPORT OF GOODS COSTING SHEET Categories / Items PRODUCT COSTS Cost of product (per unit CAD) Profit margin (%) Export packing Labelling Marking cases Strapping costs PRICE EXW INLAND TRANSPORTATION COSTS Freight to seaport Unloading charges Demurrage or storage charges PRICE FAS OCEAN FREIGHT AND EXPORT CHARGES Loading vessel Ocean freight Other charges PRICE CFR MARINE INSURANCE Marine insurance (110% of invoice insured) Export credit insurance premium PRICE CIF IMPORT DUTIES AND DELIVERY Unloading Import taxes (duties Other fees Loading Page 5 of 6 1290 words E English (United Kingdom) * Accessibility: Investigate + 100% 24 C OLDOE 00:31 W 0 ENG Clear IN 17-06-20226 C5 Porter's Cost Analysis IBM130 Template(1) - Word Parikshit Khunt PK X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share do Cut Arial - 13.5 - A A Aa A Find Copy AaBbCcDd AaBbCcDd AaBbC( AaBbCct Aa B AaBbCCD AaBbCcDd AaBbCcDd AaBbCcDd Bac Replace Paste Format Painter BI U~ abe X2 x AZA. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Select Clipboard Font Paragraph Styles Editing i GET GENUINE OFFICE Your license isn't genuine, and you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Get genuine Office Learn more Other tees Loading Transport PRICE DDP Yellow highlighted cells require justification 5 The Porter's 5 forces Framework The Porter's 5 forces tool for industry analysis to determine the attractiveness of the industry as a whole as well as separate markets within it. This analysis allows you to understand the opportunities and existing threats that are specific to the industry and how it may affect profitability; and identify key factors for the industry's success. In order to successfully confront the competitive forces, it is necessary to develop a strategy that would protect the company from the action of Porter's five competitive forces. It can help create a reliable competitive advantage in the industry. Supplier Power The first force is the power that your suppliers have over the operation of your business. The inputs that you need for your business (raw materials, consumer goods, etc.) are likely purchased from other businesses in one manner or another. If you purchase from an industry that has very few players in the market, your suppliers have a lot of power over your operation. If they raise prices suddenly, you might not have another viable option and would have to eat the cost. However, if you buy from an industry with many players and high competition, you are insulated from supplier power and are pretty well safe from price increases. Buyer Power This is the same as supplier power, except reversed. If you are in a business where you sell to countless numbers of buyers, you can protect the cost of your product and retain your margins. However, if you only have a few buyers (or even just one), that buyer could pressure you quite easily into a lower price. The fewer number of buyers for your product, the larger influence they have over your business. Page 5 of 6 1290 words [ English (United Kingdom) * Accessibility: Investigate + 100% 24 C Clear OLDO 0 ENG 00:31 IN 17-06-2022Porter's Cost Analysis IBM'l 30 Template-Ii) - Word Draw Design Layout References Mailings Review View Help 9 Tellniewhatyouwantto do i :1; Shale "- 31 Cut ,0 Find . D Ea Copy Am" ' 135 ' AaBbCEDd AaBchDd Aa BbC( Aa BchE Aa B AaBchD AaBchDd AuBchDd Aaaocmd 5,; Replace Paste ' Format minter B 1 H v abs X: x2 it Normal ll No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em.. Emphasis Intense E. % Select . Clipboard is Font is Paragraph 5 Styles is Editing A 0 GET GENUINE OFFICE Vour license isn't genuine and you may be a victim of software counterfeiting. Avoid interruption and keeQ your files safe with genuine Office today. Get genuine Office Learn more X Porters five competitnre forces. It can help create a reliable competitive advantage in the industry. A Supplier Power The first force is the power that your suppliers have over the operation of your business. The inputs that you need for your business (raw materials, consumer goods, etc.) are likely purchased from other businesses in one manner or another. If you purchase from an industry that has very few players in the market, your suppliers have a lot of power over your operation. If they raise prices suddenly, you might not have another viable option and would have to eat the cost. However, if you buy from an industry with many players and high competition, you are insulated from supplier power and are pretty well safe from price increases. Buyer Power This is the same as supplier power, except reversed. Ityou are in a business where you sell to countless numbers of buyers, you can protect the cost of your product and retain your margins. However, if you only have a few buyers (or even just one), that buyer could pressure you quite easily into a lower price. The fewer number of buyers for your product, the larger influence they have over your business. Competitive Rivalry This is the one aspect that is most commonly thought about when business prospects are conSidered. How many other players are in the same market as you, and how capable are they of doing the same things you are doing. In a situation where you are the only 'fish in the sea', you can control prices and dictate terms. However, if there are many other companies with equal capabilities to yours, the power is in the hands of the market as a whole. Threat of Substitution Can other product or service be substituted for yours? If your customers grow tired of paying your prices, can they reasonably turn to another method to accomplish the same goal? If the answer is yes, you may not have as much power to control your growth as you would have liked. If you are the only way to accomplish a task, and the task cannot be outsourced, you are in excellent position to bargain and grow your business. Threat of New Entrants This is a concern if you are in an easy business to get into. Should others see that you are being protable in your niche, they may deCide to enter the market and become your competition. If your industry requires a lot of upfront investment and proprietary knowledge, you will be well insulated from new entries. Businesses that don't require large facilities or technical knowledge are ripe for new entry competition when they become known as a protable industry. Advantages and Disadvantages of Porter's Five Forces Analysis. Porter's ve forces are a great way to assess if, and when, your company is ripe to grow. If the majority of the factors in this analysis look favorable for your market, there is no reason to think that you can't grow the business. However, if the analysis looks negative on your future outlook, you might want to carefully conSider ifyour industry or niche is right for further investment. By taking Porter's forces under careful consideration, you can avoid pushing too hard into a losing market, and strike when the time is right in an area of business that is poised for profitability. Complementors (Porter's Sixth Force Definition) Complementors are companies or entities that sell or offer goods or services that are compatible with, or complementary to, the goods or serVices produced and sold in a given industry. Complementary goods offer more value to the consumer together than apart. Page 6 er 6 1290 words [E English (united Kingdom) (tg'Aeeesslbllhy investigate g a 7 _|_ + 100* 24": k ENG R 00:31 Clear 10 k D a - I a a A '9' IN " KID) D 17.054022