Using the industry information below, please conduct a five-force analysis of the widget industry. Discuss the...

 

Transcribed Image Text:

Using the industry information below, please conduct a five-force analysis of the widget industry. Discuss the players in each force and the underlying power. Is the widget industry attractive for incumbents? The widget industry in the United States is a $10 billion industry. The biggest firms in the industry are: "Widgets R Us" (WRU) with 18% market share, and "Wingding Widgets Enterprises" (WWE) with 16% of the market, North American Widgets (NAW) with 12% market share, and Worldwide Widgets (WWW) with 10% market share. Widgets are precision fastener devices that come in many sizes and configurations. They are used in almost all aspects of manufacturing, production, and distribution by most US manufacturing firms. The US Government purchases large quantities of widgets for repair and replacement parts for military equipment and government agencies. Large manufacturers and production companies purchase large quantities of widgets for their operations. Most consumers purchase and use widgets for repair and replacement of household appliances, and lawn & garden equipment. The federal government regulates the quality standards of widgets and their performance specifications for various applications. Widgets are precision machined times on large, dedicated, legacy production systems, that require significant investment and highly developed engineering capabilities. Widgets are made from various generic metals and alloys that are purchased through multiple suppliers in the market. There are alternative products readily available for purchase in the market. Examples of alternatives are screws, nuts & bolts, clamps, snaps, clips, ties, and fasteners. The leading widget manufacturers possess good branding, offer a variety of specialty widgets, and have exclusive distribution agreements with business and government users of widgets. With the provided facts, please conduct a complete industry analysis of the US widget manufacturing industry. Using the industry information below, please conduct a five-force analysis of the widget industry. Discuss the players in each force and the underlying power. Is the widget industry attractive for incumbents? The widget industry in the United States is a $10 billion industry. The biggest firms in the industry are: "Widgets R Us" (WRU) with 18% market share, and "Wingding Widgets Enterprises" (WWE) with 16% of the market, North American Widgets (NAW) with 12% market share, and Worldwide Widgets (WWW) with 10% market share. Widgets are precision fastener devices that come in many sizes and configurations. They are used in almost all aspects of manufacturing, production, and distribution by most US manufacturing firms. The US Government purchases large quantities of widgets for repair and replacement parts for military equipment and government agencies. Large manufacturers and production companies purchase large quantities of widgets for their operations. Most consumers purchase and use widgets for repair and replacement of household appliances, and lawn & garden equipment. The federal government regulates the quality standards of widgets and their performance specifications for various applications. Widgets are precision machined times on large, dedicated, legacy production systems, that require significant investment and highly developed engineering capabilities. Widgets are made from various generic metals and alloys that are purchased through multiple suppliers in the market. There are alternative products readily available for purchase in the market. Examples of alternatives are screws, nuts & bolts, clamps, snaps, clips, ties, and fasteners. The leading widget manufacturers possess good branding, offer a variety of specialty widgets, and have exclusive distribution agreements with business and government users of widgets. With the provided facts, please conduct a complete industry analysis of the US widget manufacturing industry.

Answer rating: 100% (QA)

FiveForce Analysis of the US Widget Manufacturing Industry 1 Threat of New Entrants Players The significant investment required for precision machinin... View the full answer