Value system model industry value chain from case 3

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Value System Model (industry value chain): From Case 3 Grape (10%) ->winery (5%) ->retail (50)* -> consumer ->LCBO (30) ->On site (50)* ->restaurant (40) If want them go to retail, they have to some skill or expertise in retail Looking for somewhere that can add value in it Looking to integrate backward or forward Chance is to integrate backward in farm Example from textbook: Log Franchise Fast Food Hamburgers
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Threat of Entrants (4) 5= low threat, 1=high threat - Cost advantage (3) - Learning curve (5) - Access to input (3) - Government policy (5) - Economy of scale (4) - Capita Requirement (5) - Brand identity (1) - Switch costs (3) - Access to distribution (5) - Expected Retaliation (1) Degree Rivalry (4) 5=high competitive, 1= low competitive - Exit barriers (4) - Industry Concentration (4) - Fixed Cost/ Value Add (5) - Industry Growth (4) - Intermittent overcapacity (4) - Product differences (4) - Switching costs (3) - Brand Identity (4) - Diversity of rival (4) - Corporate stakes (3) Threat Substitutes (4) 5= industry, 1=substitute - Switching costs (4) - Buyer reliance to substitutes (5) - Price-performance trade off (4) - Variety of sub. (3) - Access of product/ service (5) Complement - number (5) - Relative Value (5) - Carriers to entry (3) - Difficulty of engaging (2) - Buyer perception (5) - Exclusivity (3)
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Buyer (2.5) 1=power to industry, 5=power to supplier
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