Industry Analysis As an introduction to the Industry Analysis section of your do
ID: 346393 • Letter: I
Question
Industry Analysis As an introduction to the Industry Analysis section of your document, summarize the industry in which your venture will be competing. Next, describe any current and emerging technological factors, economic influences, socio-cultural factors, and political factors/regulatory issues, etc which can/will impact your venture, and add how seasonality impacts the industry sell cycle (STEEPG Analysis). Make sure and size the market that you are entering including growth rates and typical profits. Make sure and size as able the total market, your market segment and the niche that you will use for entry. Discuss feasibility and how you have validated your value proposition. Use data and graphics to support and summarize your analysis.Explanation / Answer
Industry which I will choose for industry analysis- Router manufacturing company.
Business strategy and summary: Their main manufacturing hub is situated at china. They are manufacturing router and accesseres like charger and all. Their product line is very much interesting. They have different product line like range extender,camera,modem, antenna,phone,Switches etc. they have very great global presence. they 120countries operations. They have billion of customer base and they have very great distributor list all over world. In SOHO and SMB line they have very nice presence. They have SOHO market share 54% and 28% of SMB market share.They are grabing almost 200cr profit from each country. Global presence is very much importenet.
Industry Analysis :
In this analysis we need to focus on five porter's model analysis.:
Entrants: Entrants is very much importents for any industry via distributors and dealers or by franchises. They have entrants by distributors. we need to focus of some points like Economics of scale,Differentiation, capital requirement,govt policies. so that these things they maintained by market research and import the meterials from china to sell different countries.
Buyers: Buy size of market where customers are using router and very much need. Low switching cost and low margine cost. Buyer always purchase the modem by comparing with other company.
Suppliers: Dominated by few suppliers like differents suppliers present into market. So that they have business strategy of these. Give good margin to buy. Market data base is also importent.
Industry competitors : They have very big line of competitors . Sothat they have very different types of marketing policy to capture anyone eyes.
STEEPG:
SOCIAL: Very few factors are presents here. Net utilization in society. Population wise segementation. Emphasis on security and safty in networking and swtich used in networiking purpose. Social purpose also they utilized.
Technologies: Main thing farmware utilization and design of products and features. These thing they always maintained. Various products have that is very long range capturing modem that use in office. R&D cost also very moderate. Techologies they use inside and outside organization. Verymuch importent part of modem industry.
Economical: Most importent part of industry. This would lead to give big focus on market share and ROI.On the basis of economical growth of country and other factors are very much importent here to identify their business. Likne Inflation and Import exim rate and MNC tax rate and big manufacturing company economical growth rate by which they would install their business for a country.
ECOLOGICAL: This part is base on some points: environmental aspect like climate, weather change. Modem is basically not good whrere rain is very high volume. Hence rainy season most of modem is become dead on arrival so that that factor they should have in their mind. In this thing they should focus more on repalcment and service.
Policies and law: Vrious policy which affect a business like tax rate, exim policy, import and export rate, labour laws,Environmental laws,Trade restrictions, tariffs, political stability . These thing very much importent. Where we can see that company's profit is base on these things. And these things is very much importent. Local body tax and GST is now also included for warehouse and storage of meteials. Leegal purpose like Documentation for dispatch meterials like docket tax invoices and return invoices with road permit.
Value propotions is very importent in case of value added to this country and society. How much country is helped bu this business.
Entrants Buyer Suppliers Substitute Industry competitors