Canadian Banking Industry
Situation Analysis

PESTEL Analysis

Political

Economic

Social

Technological

Legal

Environmental

Porter's Five Forces

Threat of entrants

Consumer bargaining power

Threat of substitutes

Supplier bargaining power

Competitive rivalry

Strengths

Weaknesses

Opportunities

Threats

How attractive was the Canadian banking industry in 2013?

The attractiveness of the 'no frill's segment

Acquisition of ING by Scotiabank using the Tangerine brand

esources and capabilities by PC to fight in the no-frills segment

The impact of co-branding with the Loblaws PC Points program

Were PC's efforts considered a 'blue ocean' strategy?

Alternatives

ecommendations

Timescales

eferences

Analysis of the Canadian Banking Industry

Problem statement

PC Financial Services is struggling to survive in the phase of industry transition. Just like other global banking organizations, PC Financial faces significant new challenges. Stiff competition and new technologies are disrupting the industry. Customer expectations are rising and evolving. egulatory reforms and requirements continue to evolve and grow. All these are vital components of doing business today. Besides the areas mentioned above, PC Financial still faces challenges in various areas. However, three problems appear to stand out in the current…...

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References

Braudo, R. J., & MacIntosh, J. G. (1999). Competitive Industrial Development in the Age of Information: The Role of Cooperation in the Technology Sector. London: Routledge.

Crossan, M. M. (2005). Strategic Management: A Casebook. Toronto: Pearson Prentice Hall.

Fanelli, J. M., Medhora, R., & International Development Research Centre (Canada). (2002). Finance and competitiveness in developing countries. Ottawa, Ont., Canada.

Faulin, J. et al. (2012). Decision Making in Service Industries: A Practical Approach. CRC Press, 2012

Corporations interested in using Porter's model may consider the model a good starting point. The model will allow some industry analysis. For a business to be truly successful, it will have to work at adapting Porter's model to accommodate the changing face of competition in today's marketplace.
Competition is ever present and existent, but more and more companies are creating networks and partnerships to facilitate productivity and change in the global marketplace. Consumers are no longer limited to static organizations or local services to acquire services; rather they have the ability to shop from a global marketplace that can offer anything and everything. Thus corporations should consider the possibilities inherent in global partnerships.

Porter's model was hailed as the crowing achievement of his time. His model is still useful as a tool for understanding the concept of business strategy and lying the foundation for analysis for corporations today. However it should…...

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References

Chaffee, E (1985) 'Three models of strategy' Academy of Management Review 10(1)89-

Cotterill, R.W. (1994). "Competitive strategy analysis for agricultural marketing cooperatives." Boulder: West view Press

Downes, L. (1997). "Beyond Porter." Context Magazine, 6, November 2004. http://www.contextmag.com/setFrameRedirect.asp?src=/archives/199712/technosynthesis.asp

Fahey, L & HK Christensen (1986) 'Evaluating the research on strategy content' Journal of Management 12(2)167-83

Airline Industry
Porter's Five Forces

Porter's Five Forces: Airline industry

Threat of new entrants

A number of new, low-cost carriers have entered the airline industry in the wake of deregulation of the airline industries, including Southwest, Jet Blue, and Spirit Airlines. At present, barriers to entry within the industry are higher than, for example, entering a small, local pizza market. But barriers are lower than before and recent "congressional mandates aimed at increasing competition at highly concentrated major U.S. airports...required airports above certain concentration thresholds to take concrete steps to ease and encourage new entry and expansion by smaller airlines, primarily by increasing access to airport facilities" (Snidery & Williamsz 2011:1)

Power of suppliers

The power of suppliers is relatively limited, mainly "Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn't very likely. In other words, you probably won't see suppliers…...

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References

Greenberg, Peter. (2010). Airline fee analysis: Southwest vs. Spirit. Peter Greenberg.

Retrieved:  http://www.petergreenberg.com/2010/05/25/airline-fee-analysis-southwest-vs.-spirit/ 

The industry handbook: The airline industry. (2012). Investopedia. Retrieved:

 http://www.investopedia.com/features/industryhandbook/airline.asp#axzz236I9lleM

What is Strategy: Healthcare OrganizationsAlthough Michael Porter penned his famous article What is Strategy in 1996, many of his basic strategies still apply to healthcare institutions today, Porter stressed the idea that every institution must choose between a cost leadership versus a differentiation strategy (Hamdan, 2017). Porter noted how while quality, speed, operational efficiency and other enhancements can enhance sales and increase revenue, a strategy should not be confused with such factors. Strategy involves developing a strategic competitive advantage, or a unique offering, that cannot be easily or efficiently replicated by competitors.Porter (1996) notes that many companies like Southwest Airlines and Vanguard have capitalized upon price-sensitive consumers as a way of garnering a competitive advantage, or offering what other organizations do not. Although healthcare is a less price-sensitive industry than the airline industry, walk-in clinics and pharmacies which offer basic care is an example of healthcare entities offering a cost…...

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Work Cited

Hamdan, A.L. (2017). Porter’s strategies in healthcare. Strategic Thinking in a Hospital Setting, 9-15. Retrieved from: https://www.researchgate.net/publication/315512922_Porter\\\\\\'s_Strategies_in_Healthcare

Lethbridge J. (2011). Understanding multinational companies in public health systems, using a competitive advantage framework. Globalization and Health, 7, 19. Retrieved from:  https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3141382/ 

Porter, M. (1996). What is strategy. Harvard Business Review, 74 (60) 61-78.

The Bargaining Power of Buyers is also an area that Apple has significant control over, as it has built up one of the most loyal and cost-insensitive customer bases there are in technology. Customers willingly pay over $500 for new iPads and will wait in line for days to buy them (Apple Investor elations, 2012).

The next factor of New Market Entrants is an area of much activity globally today, as Asian contract manufacturers seek out opportunities to create iPad and iPhone clones (Apple Investor elations, 2012). The new market entrants from Microsoft/Nokia alliance and the onslaught of Google Android-powered devices will also change the market landscape over the long-term as well.

Finally the Substitute Products also are a critical factor in the overall Five Forces Model analysis of Apple with counterfeiting flourishing throughout the region and online globally. There are also the low-cost contract manufacturers who are driving down the low-end…...

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References

Apple, Investor Relations (2012). Investor Relations. Retrieved March 28, 2012, from Apple Investor Relations and Filings with the SEC Web site:  http://www.apple.com/investor/ 

Michael E. Porter. (2008, January). The Five Competitive Forces That Shape Strategy. Harvard Business Review: Special HBS Centennial Issue, 86(1), 78-93.

Economics
Sources of Information for a Porters Five Forces Analysis on Kraft Foods

To undertake a Porters Five Forces analysis it is necessary to identify potential sources of information that will give the required information. The Five Forces analysis will require an assessment of the five areas; degree of rivalry among competitors, threat of new entrants, bargaining power of suppliers, bargaining power of customers, and availability of substitutes. This process can be examined by looking at the sources which may be used for a Porters Five Forces analysis of Kraft Foods, a firm that competes in the food industry. Each of the forces will be considered separately.

Degree of rivalry among competitors

Source 1; CSI Market; UL is http://csimarket.com/stocks/competitionSEG2.php?code=KFT

This is a very useful web site which has the primary aim of providing information to potential investors. The page on Kraft Foods is particularly useful in assessing the firm's position in the context of rivalry…...

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References

Baertlein, L, (2014, Sept 30), Kraft challenged by "healthier" macaroni and cheese brands, didReuters, accessed at  http://www.reuters.com/article/2014/03/30/us-kraft-macandcheese-idUSBREA2T09C20140330 

CSI Market (2014), Kraft accessed at   on 7th Sept 2014http://csimarket.com/stocks/competitionSEG2.php?code=KRFT 

Food and Drug Administration, (2004), accessed at   / on 7th September 2014http://www.fda.gov/Food 

K-Mart, (2014), accessed at   on 7th Sept 2014http://www.kmart.com/en_us/grocery-pet.html 

Five forces' analysis (Porter 1980)
Five Forces Analysis of Competitive Structure

Michael Porters Five Forces Analysis of Competitive Structure is a paradigm for competitive position, which states that overall a company's profitability may be determined as a measure of the industry it is competing in and its strategic position within that industry (Strategy4u, 2004). According to the model some industries by nature will have a higher profit potential than others, primarily because they have a stronger competitive position and are placed within a more profitable industry.

Porter's Model also suggests that profitability is assessed via several factors, including the following: buyers/customers power, supplier's power, and rivalry among competitors, threat of new entrants into the market, and the threat of substitute products (Strategy4u, 2004). The company or industry will have a greater profit potential the less influential each of these items are. For example, if a company sells a product for which there are…...

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Bibliography

Business Insight. "Michael Porter's Five Forces Model." 2003. Available: http://www.businessplansoftware.org/porter.asp

Devine, Donald. "Pols Dare Not Challenge Giveaway to Media Gods." Insight on the News, Vol. 13, May 1997. p. 1

Economics A-Z." Economist.com. Retrieved March 27, 2004. Available:  http://www.economist.com/research/Economics/alphabetic.cfm?TERM=PROFIT 

Fellner, W. "Competition among the Few: Oligopoly and Similar Market Structures." New York: A.A. Knopf, 1949, pp. 55-59

IMC Strategy
The existence of an Integrated Marketing Communications (IMC) is aimed at providing a designed approach that delivers a consistent message to consumers transversely in advertisements including different media types like the Internet, TV, mobile phones, and magazines among others. In reality, any ad must communicate a consistent message to its varied audiences. IMC strategy is essential in today's business world because of the existing communication technology and the instant access to data using such devices such as the Internet. It is only by delivering consistent messages about an organization or brand that has helped many establish their brand in consumers' minds and that of their potential customers. It is from the computers and phones that many business professionals and consumers pursue information and link with other people and even businesses. As such, it is evident that the work and social surroundings are rapidly changing, and more people have…...

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Reference List:

Miller, F.P., Vandome, F.A. & John, M. (2011). Porter Five Forces Analysis. VDM Publishing.

.....industries that are much more profitable than others. Per data from the BBC, there are two industries among five major ones that stand out (Anderson, 2016). Indeed, when looking at pharmaceutical firms, banks, car manufacturers, oil/gas refiners/sellers and the media, the first two of that list are clearly the best. The media does decently at about 12%, oil and gas does about 8% and carmakers are at about six percent. On the other hand, banks and pharmaceutical companies are both quite close to 18% and many firms within that realm do even better. Indeed, Pfizer does 43% in terms of profit.
Whether one focuses on the pharmaceutical company in particular or not, however, Glaxosmithkline (GSK) is clearly in its own echelon of performance and adeptness. They are very much in the "pack" when it comes to their profit level as many pharmaceutical companies hover around twenty percent. However, many others are…...

For this reason, they have stepped out to pursue alternatives, especially foreign cars. On the contrary, as consumers become price oriented, they have minimal purchasing power because they are not buyers of large volume automobiles (Porter, 1985).
3.3 Threat of New Entrants

It is extremely difficult for new entrants penetrate the auto industry because of the existing high level of brand loyalty. Nevertheless, the few popular overseas firms and entered the American auto industry easily. For example, Honda Motors entered Ohio by opening a new office. This marked the beginning of a major stiff competition in the industry. Foreign entrants have expanded leading to decreased markets for American auto companies (ubenstein, 2011).

3.4 Bargaining Power of Buyers

In the current marketplace, consumers have been given various options, models, and brands to make their selection. However, various factors affect the buying decisions of consumers. They include price, appearance, and effect on the environment. Customers…...

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References

Beecroft, D. (2008). History of the American automobile industry. Toronto: CCH Canadian Limited.

Cooney, S., & Yacobucci, B.D. (2009). U.S. automotive industry: Policy overview and recent history. New York: Nova Science Publishers.

Porter, M.E. (1979) "How competitive forces shape strategy," Harvard Business Review, March/April 1979.

Porter, M.E. (1980) "Competitive Strategy," The Free Press, New York, 1980.

Porter's 5 forces are threat of new entrants, bargaining power of buyers, bargaining power of suppliers, substitution threats and rivalry determinants. In my opinion, as a small food retailer, you can count disadvantages vs. major food retailers in all these categories.
As such, first of all, entry barriers refer to such things as economies of scale, brand identity or access to necessary input information. As a small food retailer, you are not able to realize the economies of scale that larger food retailers successfully provide basically because a larger food retailer has several activities and is able to successfully transfer costs from one to the other. On the other hand, as a larger retailer, you are able to spend and invest in your brand, to the point that a small retailer will be practically inexistent as opposed to a strong brand, a brand which has received consistent investments. In terms of…...

Five Forces Model Analysis of the SmartPhone Market
The Five Forces Model (Porter, 2008) provides a useful framework for evaluating the dominant competitive forces that influence the size, direction and intensity of competition in a given industry. The Smartphone industry is analyzed in the Five Forces Analysis completed in this paper, and is shown in Figure 1.

Smartphone Five Forces Analysis

(Apple, Investor elations, 2012) (Bernoff, Li, 2008) (Lee, Kwak, Kim, Kim, 2009) (Porter, 2008)

What is immediately apparent from evaluating the role of Substitute Products, Bargaining Power of Suppliers, Bargaining Power of Buyers and New Market Entrants is the speed and breadth of innovation occurring in this industry. Social networking's pervasive adoption globally is also completely reordering the supply chain for smart phone components and assemblies, hastening product lifecycles in the process as well (Bernoff, Li, 2008). Apple's continual focus on innovation and the rapid product lifecycles they have actually put the Five…...

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References

Apple, Investor Relations (2012). Investor Relations. Retrieved January 13, 2012 from Apple Investor Relations and Filings with the SEC Web site:  http://www.apple.com/investor/ 

Josh Bernoff, Charlene Li. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.

Lee, B., Kwak, J., Kim, K., & Kim, S.. (2009). Technical innovation and 3.5 mobile phone generation: Lessons from Korea. Telecommunications Policy, 33(5/6), 296.

Michael E. Porter. (2008, January). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY. Harvard Business Review: Special HBS Centennial Issue, 86(1), 78-93.

Five Forces Analysis
Porter's Five Forces model analysis business opportunity "Start business provide music movies online internet"

Porter's Five Forces model:

A new business for downloadable music and movies online

Porter's Five Forces model:

A new business for downloadable music and movies online

According to the management theorist Michael Porter, "the model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure" (Porter's five forces, 2008, Quick MBA). Thus, it is necessary that every new company offering either an innovative or an existing type of product or service understands its current position in its specific industry market. The new company must strive to position its product in an optimal fashion by conducting what Porter calls a Five Forces analysis. Five Forces analysis offers insight into the…...

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References

Competitive advantage (Porter) explained. (2008). Value-based management. Retrieved February 3, 2011 at  http://www.valuebasedmanagement.net/methods_porter_competitive_advantage.html 

iTunes. (2011). Official website. Retrieved February 3, 2011 at http://www.apple.com/iTunes/

Kazaa. (2011). Official website. Retrieved February 3, 2011 at http://www.kazaa.com/#

Porter's five forces. (2008). Quick MBA. Retrieved February 3, 2011 at  http://www.quickmba.com/strategy/porter.shtml

In fact, many of them are more likely to make sure that as much space is provided when it comes to taking over the Internet. For example, these individuals want to make sure that they are likely to get what it is they want by having a Web presence. This means that they are going to do everything possible to have as many contacts as possible from off the Internet in order to get as much revenue as possible that it could lead to a monopoly. In essence, if a monopoly does occur, then they are going to face breaking the law in the process. Furthermore, privacy issues are concern because of how much of a giant they have become since the inception of the organization as of 2004 (Facebook, 2011d).
By studying Porter's Five Forces, one learns that Facebook is an MNE that is as big as Google. They…...

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References

Facebook. (2011a). About Facebook. Retrieved June 25, 2011, from Facebook:  http://www.facebook.com/press/info.php?factsheet 

Facebook. (2011b). Statistics. Retrieved June 25, 2011, from Facebook:  http://www.facebook.com/press/info.php?statistics .

Facebook. (2011c). Timeline. Retrieved June 25, 2011, from Facebook:  http://www.facebook.com/press/info.php?timeline .

Facebook. (2011d). Executives. Retrieved June 25, 2011, from Facebook:  http://www.facebook.com/press/info.php?execbios .

Buying one brand of shampoo instead of another, for instance, is quite common. ivalry, therefore, is high.
Porter's value chain

Porter shows how firms such as Procter & Gamble can create competitive advantages for themselves. He categorizes a company's activities in the following way:

1. Primary activities: (a) Inbound logistics -- receiving the incoming material, including the handling and inventory of their material; (2) operations -- P&G's suppliers forming this material into their products; (3) Outbound logistics -- getting their products on their shelves and to the shelves of the different private stores and from thence to the customers; (5) marketing and sales -- P&G doing research on customer needs, satisfying their needs, communicating with consumers; (6) service -- fulfilling customers' needs after service has been completed, following up, and occasionally replacing products if need be. esearch too is ongoing in order to discover future trends and ways to best satisfy and…...

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References

Quick MBA. The Value Chain. Strategic management www.quickmba.com/strategy/value-chain

Quick MBA. Porter's Five Forces. Strategic management www.quickmba.com/strategy/porter.shtml