Requirements for Project Content

(a) Your group will develop a startup and complete a Five Forces analysis for that firm.

Design a research brief that concisely highlights research findings justifying the opportunity chosen.

(b) In your group assignment, it must be clear which product and/or service your analysis will focus on.

(c) Please ensure your group submission follows the outline below. The content of your group assignment must reflect primary and secondary research information. Be sure to receive your instructors approval for the company that you choose.

i) Describe the bargaining power suppliers

Describe the bargaining power of suppliers. Normally the number of suppliers affects their power. Relatively few suppliers means that they are more powerful. Powerful suppliers will use their negotiating leverage to charge higher prices.

ii) Describe the bargaining power of buyers

How powerful are your buyers, ie your customers.

Consider, if there are a large number of potential buyers for your product or service, or a small number of buyers with higher bargaining power.

iii) Describe the threat of substitute products or services

Substitutes are products or services that meet the same basic need as the industrys product in a different way. (eg uber for taxis; Airbnb for hotels). Substitutes are more effective when buyers face low switching costs as is the case with uber and Airbnb.

Describe the threat of substitutes in the business you are entering

iv) Describe the threat of New Entrants

Because your group is starting up a firm is less that a month, barriers to entry by definition will be low. Describe how this will affect your decision as a start up in this industry.

v) Describe the rivalry among existing competitors

Price Competition

Discuss the nature of price competition

Advertising

How do firms in the industry advertise, eg social media, AdWords etc.

Is there an opportunity to attract customers in different ways, eg alliances

New Product Introductions

Is the current product / service relatively stable or is it changing rapidly.

Increased Customer Service

Are firms competing based on increased investments in customer service.

vi) Other factors

Consider other factors such as technology, government regulation (eg marijuana), high growth industries, complements) if appropriate

vii) Define your Product and Geographic scope

Determine and explain the appropriate location for the business, and the geographic trade area

For example,

long haul trucking based out of Brampton

transportation for infants between 1 year and 6 years old in Richmond Hill