One of the key reasons Alibaba former Chairman Jack Ma has remained bullish, despite a trade war between the US and China that's seen high tariffs imposed on goods flowing between both parties, it is because of the company's dominance of China's home market. China’s e-commerce sector is more or less monopolistic with Alibaba’s TMall commanding almost 51.3% of the market. Using Porters five forces framework, this report examines why trade tensions between China and the USA will not impact Alibaba as much as other Chinese multinationals. We analyze Alibaba's relationship with buyers and suppliers to understand who holds more power.
The report also looks the BCG Matrix of Alibaba to examine the strategic business units (SBUs) that the company should invest in or divest based on rates of market growth, profitability and macro factors identified in Alibaba's pestle analysis (See Alibaba Pestle and Swot 2018 report).
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This report uses Michael Porters five forces framework to examine Ryanair and the UK airlines industry to try and understand how the five forces are affecting the low cost airline and the impact on profitability.
This report examines Nike through the lens of Porters five forces to assess how the five forces affect Nike and the sports clothing retail industry.
Xiaomi has not been performing well since 2016, falling from top position in the Chinese smartphone market in 2015 to number 5 in 2017. Things are however beginning to look up for Xiaomi. The company’s market share picked up in the first quarter of 2018, rising to 13% from 8% in 2017. Using Porters five forces and BCG matrix or growth share analysis, this report looks at how the five competitive forces – buyer power, supplier power, threat of entry, threat of substitutes and rivalry between existing smartphone firms have shaped the structure of the Chinese smartphone industry. The report also uses the BCG/growth share matrix to look at some “cash” generators and “star” product categories Xiaomi can further invest in as well as possible “dogs” the company should divest as a way of rebranding and repositioning itself after a tumultuous 2016 and 2017 period.
Maruti Suzuki is the biggest vehicle manufacturer in India with a market share of over 50% meaning, one out of every two cars purchased in India is a Maruti Suzuki. In fact, such is the dominance of Maruti Suzuki that seven of its passenger vehicles were featured in a list of India’s best selling cars of 2017. Its closest rival is Hyundai Motors India with a market share of around 17% meaning the combined market share of Maruti Suzuki and Hyundai Motors India India is close to 70%. Such a high concentration of the market share between the two dominant players means India’s automotive sector is a duopoly.
Using Porters five forces, this report examines the current industry structure of the Indian automobile industry to understand the nature of competition and more importantly shed some light on how Maruti Suzuki has gained and maintained such dominant market share in recent years despite increased competition in India’s automobile industry.
The UK food retailing industry is currently highly competitive, characterized by price wars, heavy discounting and increased merger and acquisition activity as seen in the recent merger of Tesco and wholesaler Bookers Group in March 2018 and the much anticipated merger of Sainsburys and Asda (Sainsdas). The price-driven nature of the industry has in turn led to declining sales and market share especially among the Big Four and a squeeze on their profit margins. Using Porters Five Forces, this report looks at how the five forces of competition buyer power, supplier power, threat of substitutes, barriers to entry and nature of industry rivalry are driving competition in the UK food retailing industry.
Volkswagen AG may still be the world’s second largest automaker in the world after Toyota but negative macro trends have been taking a toll on the German automaker, changing the auto landscape and industry structure. Such interferences include Trumps 20% tariff threat on all EU made cars which he wants implemented by November 2018. The UK, Volkswagen’s second biggest market in Europe, recently introduced a new initiative that will end sales of diesel and petrol cars by 2040. If fully implemented, at least 50% of news cars sold in the UK must be ultra-low emissions by this date. For Volkswagen and other automakers, the threat is clear; move to electric or perish. The company has also paid more than $25bn in fines and damages related to its 2015 ‘diesel-gate’ scandal, an amount that excludes the threat of future financial compensation from civil litigation.
These are some of the macro factors that could undermine Volkswagen. But the more critical factors, that are also major determinants of industry profitability include the five forces and their impact on indivdual firms. In this report, we look at the five forces and how they are affecting Volkswagen AG.
Founded in 2009, Uber has become the biggest and most successful taxi and ride sharing company in the world, and in 2018 commanded around 73% of the US market share, its biggest market. The ride sharing firm together with rivals has the potential to disrupt a potential $650+ billion global market for human and non-human mobility that includes taxi cab hailing, car-as-a-service, last mile package delivery, or short-term car rentals (Kulkarni 2017). Despite its success, all is not well with Uber recently. Uber CEO was forced to resign in 2017 following the DeleteUber campaign that resulted in a loss of more than 500,000 customers and market share decline across numerous US states (Statista 2018c). Using a SWOT analysis sample, this report analyses Ubers strength and weaknesses.
In 2018, Sainsburys announced a possible merger with third placed rival Asda in a move designed to increase its buying power and market share to make 'Sainsdas' the biggest supermarket chain in the UK. Using Porters Five Forces, this report examines the some of the most critical factors Sainsbury faces and how the industry structure is being changed by the emergence of the power of the buyers,suppliers,competitors and threats before an analysis of current strategies.
Tesco has been the UK's most dominant supermarket for more than two decades and it is still the biggest supermarket in the UK. But all is not well for the giant food retailer. Since 2013, the company has posted declining UK sales. The food retailing giant has also been losing market share in the UK from a high of 30.9% in 2012 to the current 27.6% as of 2018. It has had to close loss making Tesco Direct, and is currently contending with a possible merger of Sainsburys and Asda (Sainsdas) which if successful will mean a more potent rival bigger than Tesco, further putting a squeeze on market share and Tesco margins in a competitive environment that is already characterized by price wars, high inflation and slow wage growth. Using Porters Five Forces, this report examines the current micro environment and some of the most critical factors Tesco faces and how the industry structure is being changed by the emergence of Aldi and Lidl before an analysis of current strategies Tesco is applying to recover lost ground and how it can supplement them with new recommended strategies.
