Friday, June 17, 2005
Planning Part 2 Tutorial
B. Application Exercises
Rivalry among existing firms
- no of competitors
- indirect competitors such as food courts
- promotions
- price competition
- advertising
- rate of industry growth
Bargaining power of suppliers
- buns - bargaining power is low as if McDonald's change their supplier they would have large losses
- meat - low bargaining power
- coke and pepsi - low bargaining power
- packaging - low bargaining power
- potatoes - high bargaining power as there is only one source
Bargaining power of customers
- buying for own personal consumption - low bargaining power
- products in McDonald's are differentiated e.g. french fries - low bargaining power
Threat of new entrants
- barriers to entry high due to cost and difficulty (expensive to start)
- direct competitors such as other fast food chains
- indirect competitors e.g. hawker centres and coffeeshops selling hamburgers and fries
Threats of substitutes
- KFC, BurgerKing, Long John Silvers
- services - air-conditioned food courts
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Strengths
- modern facilities
- courses e.g. Tourism Academy, Law, Design
- Problem-Based Learning (PBL)
- Flexible Academic System for Temasek (FAST)
Weakness
- not near MRT station
- shorter history
- weaker image for some courses
Opportunities
- go universities in other countries with exemption in some subjects
- easier to find job with diploma compared with an A level certificate
- international students -> exposure
Threats
- other polytechnics offer similar diploma choices
- competing with other polytechnics to enter universities
- more overseas institutions