STRATEGIC MANAGEMENT

Strategic management of Yahoo Inc

Strategic management of Yahoo Inc

Appendices

Appendix 1: Macro- Environment Analysis of Yahoo

Factors

Issues

Impact

Growth Effect

Political

Government Policies

Online businesses, like Yahoo, face tough challenges of the legal policies of every country in which they operate.

Legal Regulations of internet

Privacy regulations on the Internet

trademark and liability issues

-

-

-

-

-

Negative

Economic

Global Economic Downfall

Decline in consumer confidence

Lay offs

Unemployment

Recession

inflationary factors hindering the economy or consumer purchasing power

Globalization

-

-

-

-

-

-

-

+

Negative

Socio-culture

Internet usage affecting the family values

Improved Communication

Mitigating cross cultural boundaries

Green consumerism

-

+

+

+

+

Positive

Technological

Advancements in technology

Internet Compatible Cell Phones

Fast and Accessible Internet Service

+

+

+

+

Positive

Environmental

Resource cost

Environmental Friendly Services

+

+

Positive

Appendix 2: Industry- Environment Analysis of Weight Watchers

Item

Issues Analysis

Impact

Effect

Threats of new entrants

Economies of scale

Huge budget is required for start up

several assets required (head office, plants, suppliers)

supply chain management now essential part if process with other manufacturers

Brand identity

recognition or identification of supplying a certain quality is important

those who are in the market for long time have a name for them

customers are loyal to particular brand

Proprietary product differences

new entrants may be excluded if the products cannot be replicated

this is a health product very important for all

all the other company have different quality and style

Capital requirements

large funds requires to purchase machinery

large funds needs for technology to produce comparable products

current leaders have monopoly

Absolute cost advantage

exiting companies having absolute advantage of new entrants

new competitor easily can enter the market

Political restrictions

the products needs quality environmentally friendly products

the products needs to be healthy and safety regulations checked

Access to distribution

access to distribution is hard for new entrants

it requires huge amount of budget and time to establish the distribution channel

Expected retaliation

markets leaders need to offer some promotion in order to stay in competition when new entrant comes in

Low

High

Low

High

High

High

Medium

Medium

High

Bargaining power of suppliers

Differentiation of inputs

inputs are mostly the same except for minor differences

quality or value may be effected by differing qualities

certain manufacturers have patented components for their own brand

Supplier concentration

there are chances for having difference suppliers for production

switching cist can be easy

brands have selection of suppliers and own suppliers

Suppliers volume

the products for the production components are high to supply for the industry

Costs relative to total purchase in the industry

the geographic diversification of suppliers and expansion of the manufacturing resources having more choices

Supplier substitute

there are alternative suppliers of components to produce products

the special brands focusing will not be shown to the substitutes

the industry has power

Forward integration

threat of suppliers becoming a competitor producing products in the industry

most of the suppliers have similar size, and network to communication among the others

Low

Low

Low

Low

Low

High

Low

Bargaining power of customers

Differentiation of outputs

in terms of design and quality the differences are high

it is unique and the products are special

Industry information

buyer knowledge of the industry and competing products

the buyer had easy access to the industry information and also about the current competitors

Switching cost

easily can switch to other brand

Presence of substitute outputs

different substitute are available in the market

easy access to for the substitutes as well

Cost relative to total buyer purchase

the buyer has the ability to purchase an alternative of cheaper cost unless there is a suitable substitute giving large power to buyer

Buyer concentration

information is easily found

High

High

Low

High

Low

High

Threats of substitute

Relative Price / substitute

there is a huge amount of substitutes exits not only outside the ...