Part 1: Case: External Analysis (30 marks)
The subscription box industry, including companies such as
the Dollar Shave Club and Hello Fresh, among others, is proliferating the
internet. According to Chen et al. (2018), it has grown by over 100% since
2013. Many major retailers, such as Sephora and Walmart, have gotten on board
to take advantage of this movement. Companies like Netflix and Disney, who
provide video streaming subscription services, may also be included in this
category. For this exercise, you will perform an external analysis on the
subscription box industry, based on your learning in Lesson 3.
Chen,
T., Fenyo, K, Yang, S, & Zhang, J. (2018, February 9). Thinking
inside the subscription box: New research on e-commerce consumers. McKinsey
& Company. https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers
Required:
1. Perform
a STEEP analysis (social, technological, economic,
ecological, and political/legal) analysis for the subscription
box industry. Include at least three points for each STEEP factor.
2. Perform an
industry analysis using the Five Forces model. Use the questions in Lesson 2, Note
4 to help guide your analysis. Based on your analysis, complete the following
chart, where 1 = weak; 2 = moderately weak; 3 = moderate; 4 = moderately
strong; and 5 = strong. (10 marks)
Competitive force
Strength
(1–5)_
Analysis: Discuss the reason(s) for your ranking.
Threat of new entrants
Power of buyers
Power of suppliers
Power of substitutes
Internal rivalry
3. Identify the strategic issues facing new companies
wanting to enter this market. Recommend
ways in which companies can succeed in this business model
A few important notes:
·
You must cite at least two credible
references in your analysis. Journals, reputable magazine articles, reputable
newspaper articles, and scholarly articles can be searched via the Athabasca
University Library at http://library.athabascau.ca.
·
You cite and format your
references using APA (American Psychological Association) style. For assistance
with APA Style, see the Purdue
University Online Writing Lab for assistance on formatting citations and
references. You can also ask your academic expert for help.
·
You must conduct your own analysis.
This means you should not use another author’s completed five forces analysis
or STEEP analysis of this industry. Look for supporting data and information
that helps you create your own analysis.
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