Could someone help me with an reply to my classmate post Here is the topic of th
ID: 352882 • Letter: C
Question
Could someone help me with an reply to my classmate post
Here is the topic of the discussion:
The five forces are:
Rivalry among existing competitors
The bargaining power of Suppliers
Threat of New Entrants to the market
The bargaining power of Buyers
Threat of Substitute Products/Services
Select ONE of the industries below and identify a specific company in that industry and identify the key drivers of competition for that industry and specifically for the selected company. Explain how those external competitive forces are affecting the industry and company and the effect of those forces on the overall strategic planning processes uniquely for that company and generally for that industry. Offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting.
Industry
Higher education
Banking
Video streaming
Food retail
Energy
Here is their response:
Industry: Food Retail
Company: Publix (grocery store)
The food retail industry has key drivers of competition. Michael Porter created a with 5 forces model that is often used in strategic planning. The 5 forces model, “provides suggested points under each main heading, by which you can develop a broad and sophisticated analysis of competitive position. This can be then used when creating strategy, plans, or making investment decisions about your business or organization” (Five, n.d, par.5). The main headings of the 5 forces model are rivalry among existing competitors, the bargaining power of Suppliers, threat of New Entrants to the market, the bargaining power of Buyers, and threat of Substitute Products/Services (Five, n.d, par.7). All 5 forces are key drivers for competition in the food retail industry.
After completing additional research Publix has a main competitor Kroger (Kritzer, 2018, par.2). Additionally, Amazon buying Whole Foods and creating new convenient pop up stores has created a new entrant to the food market industry (Kritzer, 2018, par.2). Next, other food retailers are offering a variety of organic good creating the opportunity of substitutions to occur. Furthermore, with the variety of grocery stores offering similar produce, organic food, and popular brands Publix faces competition when customers use the bargaining power and purchase items based on price sensitivity.
The external competition forces are making the food industry, especially the grocery retailer side, super competitive and cut throat. To thrive and grow these organizations have to be unique and always evolving in their strategic planning process in order to remain ahead and on top.
Explanation / Answer
I would choose the banking industry and in banking I want to talk about HDFC Bank. HDFC is one of the Leading bank in the world and it has its branches across the world and operating efficiently everywhere. In the current business world every company has a competition and HDFC is also not away from it. There are many private banks which are competitors to the HDFC bank. The key drivers of competition with HDFC or the banking sector are,
Customer behaviour – Customers are expecting better services day by day and the banks are striving hard to meet the customer expectation and leading to competition between banks. No customer will do a transaction in the bank without better benefits and facilities. Today’s era is filled with digitalization and if the banks are not up to the mark when it comes to service, there are chances of failure. Hence most of the banks now a days are trying to offer better service and they follow the scheme of customer is God. This is one of the main reason contributing as a key driver for competition.
Digital Innovation – In this digitalization era, every day one bank comes up with new features and to cope with the market every time new innovations are getting introduced with different banks and they are competing with each other. Now a days most of the people do not carry money and the transactions are happening using the debit or credit cards which is very convenient to the customer. Most of the banks who are in top positions are offering very good digital service to the customers and the expectations are increasing day by day which is bringing on a lot of competition to the banks to provide unique facilities to the customer to retain them in the same bank.
Regulatory compliance – Increasing regulatory pressure is also another reason. The number of compliance initiatives are generating information that can contribute towards revenue generation. The cost of compliance and non-compliance continued to be high. Most of the banks are competing with each other to provide better financial benefit to the customer even with tough regulatory compliance and retain the customers in the bank. Since there are many banks available in the market it is very easy for customers to go and choose the bank who are really best in class when It comes to service.
Macro-Economic environment – The increasing trends of the interest rate due to financial crisis are creating tough operative environment to the banks. So, the banks are coming up with better interest rate to the customers thus leading to competition. Since there have been a lot of influence from Macro economic factors like customer taste, cultural differences, natural forces all the banks are taking precautionary measures keeping the customers in mind and be competitive in the market they are getting up to date with time. The same is being followed by all the banks in the banking sector.