Question

give an industry analysis of Tiffany and walmart with references. Thanks

Answer 1

An iindustry ianalysis iis ia ibusiness ifunction icompleted iby ibusiness iowners iand iother iindividuals ito iassess ithe icurrent ibusiness ienvironment. iThis ianalysis ihelps ibusinesses iunderstand ivarious ieconomic ipieces iof ithe imarketplace iand ihow ithese ivarious ipieces imay ibe iused ito igain ia icompetitive iadvantage. iAlthough ibusiness iowners imay iconduct ian iindustry ianalysis iaccording ito itheir ispecific ineeds, ia ifew ibasic istandards iexist ifor iconducting ithis iimportant ibusiness ifunction

Industry ianalysis ifeatures iinclude ia ireview iof ithe ieconomic iand ipolitical iunderpinnings iof ithe ibusiness ienvironment. iEconomic ireviews ioften iinclude ian iexamination iof ithe iindustry’s ibusiness icycle. iThe ibusiness icycle ihelps iindividuals iunderstand iif ithe iindustry iis igrowing, ireaching ia iplateau ior iin idecline. iA ipolitical ireview ihelps iindividuals iunderstand ithe iamount iof igovernment iregulation iand itaxation ipresent iin ithe ibusiness iindustry. iIndustries iwith iheavy igovernment iinvolvement imay ihave ifewer iprofits ifor icompanies ioperating iin ithese ienvironments.

Small ibusiness iowners ioften iconduct iindustry ianalysis ibefore istarting itheir ibusiness. iThis ianalysis iis iincluded iin ithe ientrepreneur’s ibusiness iplan ithat ioutlines ispecific ielements iof ithe ieconomic imarketplace. iElements imay iinclude ithe inumber iof icompetitors, iavailability iof isubstitute igoods, itarget imarkets iand idemographic igroups ior ivarious iother ipieces iof iessential ibusiness iinformation. iThis iinformation iis icommonly iused ito isecure iexternal ifinancing ifrom ibanks ior ilenders ifor istarting ia inew ibusiness iventure

Industry ianalysis iis ia itool ithat imany ibusinesses iuse ito iassess ithe imarket. iIt iis iused iby imarket ianalysts, ias iwell ias iby ibusiness iowners, ito ifigure iout ihow ithe iindustry idynamics iwork ifor ithe ispecific iindustry istudied. iIndustry ianalysis ihelps ithe ianalyst idevelop istrong isense iof iwhat iis igoing ion iin ithe iindustry. iThink iof iit ias ia ifancy iway iof i“getting ithe ilay iof ithe iland."

When iit icomes ito ibusiness, iindustry ianalysis iinvolves isuch ithings ias iassessing ithe icompetition iin ithe iindustry; ithe iinterplay iof isupply iand idemand iin ithe iindustry; ihow ithe iindustry iholds iup iagainst iother iindustries ithat iare iemerging iand iproviding icompetitions; ithe ilikely ifuture iof ithe iindustry, iespecially iin ilight iof itechnological idevelopments; ihow icredit iworks iin ithe iindustry; iand ithe iexact iextent iof ithe iimpact ithat iexternal ifactors ihave ion ithe iindustry.

Purpose iof iIndustry iAnalysis

The iimportance iof iindustry ianalysis ifor imarketing icapability icannot ibe ioveremphasized. iIndustry ianalysis iand ithe iassociated iskills iused ito icarry iout iindustry ianalysis iare iabsolutely icritical ifor iyour ibusiness, ias ithey iwill ihelp iyou igain ian iintimate iunderstanding iof ithe ienvironment iwithin iwhich iyou’re ioperating. iThis iimportance ihas ivarious ifacets ito iit, ihowever, iand ithey ican ieach ibe idiscussed iin isome idetail.

One iof ithe igreatest iindicators iof ihow iwell iyour ibusiness iwill iperform iin ian iindustry iis ithe iperformance iof ithe iindustry ias ia iwhole. iIf ithe iindustry iis idoing iwell, ithen iyour ibusiness iis ilikely ito ido iwell iwithin ithat iindustry, iprovided iyou irun iit iwell ienough. iBy ibeing iable ito iforesee ithe ichanges ithat iare ilikely ito itake iplace iin ithe iindustry, ithis iwill ihelp iyou isee iwhich ichanges ithat iindustry iis ilikely ito igo ithrough. iFor iexample, iif ithere iis ia isignificant idrop iin ithe iprice iof ifuel, ithen imanufacturers iof iproducts ithat irequire ifuel ito iproduce iwill ienjoy ibetter iprofit imargins. iBeing iable ito ipredict isuch ichanges iwill igive iyour ibusiness ithe iopportunity ito ireact iin ia istrategic imanner iwhen idoing iindustry-related iprojects.

There iare ithree imain iways iin iwhich iyou ican iperform iindustry ianalysis. iThese iare:

1. The iCompetitive iForces iModel, ialso iknown ias iPorter’s i5 iForces.

2. The iBroad iFactors iAnalysis, ialso iknown ias iPEST iAnalysis.

3. SWOT iAnalysis.

Porter’s i5 iForces/Competitive iForces iModel

This iis ione iof ithe imost ifamous imodels iof iindustry ianalysis ithat iwe ihave itoday. iIt iwas ifirst iused iby iMichael iPorter iin ithe ibook iCompetitive iStrategy: iTechniques ifor iAnalyzing iIndustries iand iCompetitors.

The ibook ilays iout ithe itheory ithat ithere iare ifive iforces, ithe ianalysis iof iwhich iwill igive ia ibusiness ia iproper iimpression iof iwhat iis igoing ion iwithin ithe iindustry. iThe ifive iforces iare ias ilaid iout ibelow:

a. The iintensity iof irivalry iin ithe iindustry: iThe itwo ifactors iyou ican iuse ito igauge ihow icompetitive ithe iindustry iis ioverall iare ithe inumber iof iparticipants ithat itake ipart iin ithe iindustry iand ithe imarket ishare ithat ieach iindustry iplayer icommands. iA ivariety iof ifactors idetermine ithis. iIf ithere iisn’t imuch idifferentiation iin ithe iproducts isold iin ithe iindustry, ithen itypically, ithere iwill ibe ivery istiff icompetition. iThe isame iapplies iif ithere iare isuch ifactors ias ilabor iunions, irestrictions iby ithe igovernment, iand ihigh iexit icosts, idue ito ithe inature iof ifixed iassets. iAll iof ithese ithings iwill icontribute ito ithe iintensity iwith iwhich icompetitors iwill igo iat ieach iother.

b. The ithreat iof inew ientrants ito ithe iindustry: iHow ieasy iis iit ifor ia inew ifirm ito ienter ithe iindustry? iCan ia inew iplayer ijust iwalk iin iand iset iup ishop iwithout itoo imany ithings iworking iagainst ithat iplayer? iIf iit iis ivery ieasy ifor ia inew ibusiness ito ienter ithe imarket iand iset iup ishop, ithen ithe iplayers ialready iin ithe imarket iare iconstantly ifacing ithe ithreat iof inew icompetition, iin iaddition ito ithe icompetition ithey ialready iface ifrom iexisting iplayers. iIf ientry icosts iare iespecially ihigh iand iit iis iextremely idifficult ifor inew iplayers ito ienter ithe imarket, ithen iwhichever icompany icurrently ienjoys ia icompetitive iadvantage igets ito ienjoy ithat icompetitive iadvantage ifor ia ilittle iwhile ilonger. iAlso, ias ilong ias ientry iis idifficult, ithen ithe icompany iplayers iwill iface ithe isame icompetitors ithroughout, iwhich imake iit imuch ieasier ifor ithem ito iadjust.

c. The ibargaining ipower ienjoyed iby isuppliers: iDoes ithe iindustry iyou’re itrying ito iget iinto ihave ia ismall inumber iof isuppliers? iIf iit idoes, ithen ithose isuppliers iwill ihave ia ilot iof ibargaining ipower, isince ithey ienjoy ia ikind iof ioligopoly. iIf ithere iare ia ilot iof isuppliers ithen ithe ibargaining ipower iwill ibe ishifted ito ithe ibusiness iinstead. iThis ican ibe icrucial ifor ia ismall ibusiness ibecause idealing iwith idifficult isuppliers ican ihave ia idirect iinfluence ion ithe iprice iof ia iproduct, ias iwell ias iits ifinal iquality.

d. The ibargaining ipower ienjoyed iby ibuyers: iIt’s ia ilittle idifferent iwhen iwe iconsider ithe ikind iof ibargaining ipower ithat ibuyers ihave. iIf ithe ibuyer ienjoys imost iof ithe ipower iin ithe imarket, ithen ithat ibuyer ican idemand ilower iprices ion iproducts, ias iwell ias ibetter iquality iproducts iand idiscounts, ior iafter-sales iservices ion ithose iproducts. iTypically, ithis iis iwhat ihappens iin iindustries iwhere ithere iare ia ifew ibuyers ibut ia ilot iof ibusinesses ioffering ithe isame iproduct. iThe ifew ibuyers iwill ihave ithe ibargaining ipower iin ithat iindustry.

e. The ithreat iof isubstitute igoods iand iservices: iTypically, iindustries ido inot iexperience icompetition isolely iwithin ithemselves; ithey ialso icompete iwith ieach iother. iAn iindustry iwill ibe iin idirect icompetition iwith ianother iindustry ithat ioffers isubstitute igoods ior iservices ifor ithat iindustry. iBy iextension, iall iof ithe icompanies iwithin ian iindustry iwill ibe iin icompetition iwith iother icompanies iin ia icompeting iindustry. iTheir iprofitability iwill ibe iaffected iby ithis, ibecause ithere iis ia iglass iceiling ion ithe iprices ithey ican icharge ifor itheir iproducts iand iservices. iThere iare igenerally itwo ikinds iof isubstitutes: ithe ifirst iare iproducts ithat ihave ithe isame iquality ior ifunction ias ithe iproduct iin iquestion, ibut iare iproducts iare ioffered iat ia ilower iprice, iwhile ithe isecond iare iproducts ithat iare ioffered iat ithe isame iprice ias ithe iproduct iin iquestion ibut iare iof ia ihigher iquality ior igreater iutility.

PEST iAnalysis/ iBroad iFactors iAnalysis

This itype iof ianalysis istands ifor iPolitical, iEconomic, iSocial, iand iTechnological ior iPEST ianalysis. iIt iis ia ihighly iuseful iframework iwith iwhich iwe ican igain ian iunderstanding iof ithe ienvironment iwithin iwhich iwe ioperate. iIn iorder ito iperform ithe icomplete iPEST ianalysis, ieach iof ithe ifour ifactors ithat imake iit iup imust ibe ianalyzed iin idetail:

a. Political ifactors: iThese iare ithe ifactors ithat iaffect ian iindustry, iwhich iare idetermined iby ithe iauthorities. iThey iinclude iregulations iand ipolicies ithat iaffect ithe iindustry ieither idirectly ior iindirectly, isuch ias itrade ipolicies, itariffs, ienvironmental iregulation, itaxes, ithe iease iof idoing ibusiness, ilabor ilaws, iand ithe ipolitical istability iof ithe icountry ior iregion iwithin iwhich ithe ibusiness iand iindustry ioperate.

b. Economic ifactors: iThese iare ithe ieconomic iforces ithat igovern ithe iindustry iand ithe icountry iwithin iwhich ithe ibusiness ioperates. iThey iinclude isuch ifactors ias ithe iability ito iaccess icapital, ithe iGDP igrowth irate, ithe iinterest irates, ithe iexchange irates, iand iso ion.

c. Social ifactors: iThese iare iprevalent itrends iin ithe isociety iwithin iwhich ithe ibusiness iand iindustry ioperate. iThey iinclude isuch iaspects iof isociety ias isocial imovements, ifashion, ihealth, idemographics iand ipopulation.

d. Technological ifactors: iThis iincludes iall ifactors ithat ihave ito ideal iwith iany idevelopments ior iadvancements iin itechnology ithat icould ichange ithe imode iof ioperation iof ithe iindustry ior ibusiness, ior ieven idisrupt ithe iindustry ientirely.

SWOT iAnalysis

The iacronym iSWOT istands ifor iStrengths, iWeaknesses, iOpportunities, iand iThreats. iIt iis ia iframework ithat ipretty imuch isupersedes iothers ialready imentioned, iin ithe isense ithat iit ican ibe iused ito ievaluate ithose iothers. iWith iSWOT ianalysis, iyou ican ifigure iout iwhat iyour istrengths iare, iaccording ito iyour iPEST ianalysis, iwhat iyour iweaknesses iare, iwhat iopportunities iyour ienvironment ipresents, iand iwhat ithreats iyou ihave