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Sample Five-Forces Memo Exhibit

Sample Five-Forces Memo Exhibit - Power of Buyers(Hi...

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Industry Rivalry Suppliers Buyers Potential Entrants Substitutes Power of Suppliers  (Med)   Newsprint manufacturers; journalists;   advertisers • Threat of backward integration from    publishers and printers (NYT owns    a newsprint factory) • High concentration in newsprint    industry (3 largest manufacturers    control more than 50% of     capacity) • Unionized journalists (have been    striking against outsourcing) Threat of Entry  (Lo) • High customer loyalty • Economies of scale • High threat of retaliation Extent of Rivalry  (Hi)   Gannett Co. Inc.; Tribune Co.;    Washington Post Co. • Low industry concentration • Little to no industry growth    (circulation decreasing 1.9-2.5%) • Low switching costs for buyers
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Unformatted text preview: Power of Buyers (Hi) General public; businesses/offices; magazine/news stands • Many substitutes available • Little threat of backward integration • Want not a need (don’t have to buy a newspaper – easy to use something else) Threat of Substitutes (Med) Magazines/books; TV news programs; Internet news sources • Many substitutes available • Very low switching costs between substitutes Overall assessment of Industry Environment : Unfavorable Name of your Firm : New York Times Co. Description of its Industry : Newspaper Publishing Industry includes printers and publishers of newspapers....
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