This document contains a case study analysis of an unnamed home appliance industry. It includes questions about the industry's dominant features, a Porter's Five Forces analysis, major drivers of change, strategic groups within the industry, key success factors, and a competitive profile matrix comparing major competitors on those success factors. The Porter's Five Forces analysis found the overall industry environment to be satisfactory for competitive firms. Major drivers of change included increasing globalization, product innovation, changing buyer preferences, and changes in costs and efficiency. Key success factors included technology, manufacturing, marketing/distribution, and capabilities/skills. A competitive profile matrix rated competitors like Whirlpool, General Electronics, Maytag, and Electrolux on these success factors.

1. U
Instructor: Ahsan Durrani
CASE STUDY # 1

2. Question 1
What are the industry’s Dominant Features?

3. Industry dominant Features

4. Industry dominant Features

5. Industry dominant Features

6. Question 2
Analyze the Porter’s Five Forces acting on the
industry. Draw your conclusion about the industry
Threat of New entrains / Entry barriers
Factors -
Very
Unfavourable unfavorable Neutral Favourable
Very
Favorable -
Economies of
scale Small ● Large
Capital
Requirement Low ● High
Access to
distribution
channels Ample
●
Ristricted
Expexted
retialiation Low
●
High
Differentiation Low ● High
Brand Loyalty Low ● High
Experience Curve
Insignifica
nt
●
Significant
Govt Action Low ● High
2+2=4
4+4+4+4=
16
5+5=10
Total Score = 20 of 40

7. Exit barriers
Factors -
Very
Unfavourable
unfavou
rable Neutral Favourable
Very
Favorable -
Specialized
Assets High ● Low
Fixed Cost of
Exit High ● Low
Strategic
interrelationship High ● Low
Government
Barriers High ● Low
2 3+3=6 4
Total Score = 12 of 20

8. Threat Of Substitute Product
Factors -
Very
Unfavourable
unfavoura
ble Neutral Favourable
Very
Favourable -
Threat of Obsolescence of
Industry’s product High ● Low
Aggressiveness of
substitute
products in promotion High ● Low
Switching Cost Low ● High
Perceived price/ value High ● Low
2 3 4+4=8
Total Score = 13 of 20

9. Power of Supplier
Factors -
Very
Unfavourable
unfavoura
ble Neutral Favourable
Very
Favourable -
# of important Suppliers Few ● Many
Switching cost High ● Low
Availability of substitutes low ● high
Threat of forward
integration High ● Low
Importance of Buyer
industry to
supplier’s profit small ● large
Quantity purchased by the
industry
of supplier’s product low ● High
Suppliers product an
important input to the
buyer’s business
Highly
Inportant
●
Less
Importa
nt
1 2+2=4 3+3=6 4+4=8
Total Score = 19 of 35

10. Power Of Buyer
Factors -
Very
Unfavourable
unfavoura
ble Neutral Favourable
Very
Favourable -
Number of
Important buyers Few ● Many
Threat of Backward
integration High ● Low
Product supplied
Commodi
ty ● Specialty
Switching cost low ● high
% of buyer’s cost High ● Low
Profit earned by
buyer Low ● High
Importance to final
quality of buyers
preception High ● low
2+2=4 3+3=6 4+4+4=12
Total Score = 22 of 35

11. Competitive Rivalry
Factors -
Very
Unfavourable
unfavoura
ble Neutral Favourable
Very
Favourable -
Composition of
Competitors
Equal
Size ●
Unequal
Size
Mkt. Growth rate Slow ● High
Scope of competition Global ● Domestic
Fixed storage Cost High ● Low
Capacity Increase Large ● Small
Degree of differentiation
Commod
ity ● High
Strategic Stake High ● Low
1 2+2+2=6 3+3=6 4
Total Score = 17 of 35

12. Conclusion of Porter Model
Overall Industry attractiveness
Factors unfavourable Neutral Favourable
Entry Barriers ● 20 of 40
Exit Barriers ● 12 of 20
Rivalry among existing firms ● 17 of 35
Power of buyers ● 22 of 35
Power of Suppliers ● 19 of 35
Threat of substitutes ● 19 of 20
1 2 3+3+3+3=9
12 out of 21
Industry overall Envoirenment seems satisfactory for compatitive firms

13. Question 3
What are the three or four major drivers of change
for the industry. Justify why you have listed them as
drivers of change?
Increasing Globalization
Due to maturity in the domestic market the and high
cost of production the industry is now shifting towards
more cost efficient countries where they could gain
market with low cost of production.
Drivers of Change
Product Innovation
Innovation in the product had became an integral part of
survival for white good industry as to achieve
differentiation for gaining sustainable completive
advantage over their rivals .

14. Growing buyers preferences for differentiated
product instead of commodity product
Increase in demand for more intelligent yet
differentiated product had led the industry to move into
the era of SMART appliances.
Changes in Cost and Efficiency
The present scenario for the home appliances industry
revolves around more cost effective and efficient
production with having focused on lean manufacturing
processes like Six Sigma.

15. Question 4
What are strategic groups within the industry?
0
LOW
HIGH
P
R
I
C
E
QualityLOW
HIGH

16. Question 5
What are Key success factors in the industry?
Technology Related KFSs
Implementation of Sigma lean
manufacturing and other cost
reduction and efficiency
enhancer processes supported
with online services for the
customers.
Manufacturing related
KSFs
Low cost production designing
and with high standards for
quality control with optimum
level of economies of scale.

17. Marketing &
Distribution related KSFs
High augmented services for the
end users with fast responsive
and aggressive marketing tactics
supported with strong
distribution network to ensure
better exposures of the product
to the customers.
Capabilities and Skills
related KSFs
Highly skilled workforce
combined with strong value
chain of men power with having
on the toes approach to adopt
rapid shifts and drifts in the
services, manufacturing and
skills.

18. Question 5
Develop Competitive profile matrix of the major
competitors on these key success factors?
Industry Matrix/ Competitive Profile Matrix (CPM)
Strategic Factors Weight
Whirlpool
rating
Whirlpool
Weighted
Score
General
Electronics
Rating
G Electronics
Weighted
Score
Maytag
Rating
Maytag
Weighted
Score
AB
Electrolux
Rating
Electrolux
Weighted
Score
Technology 0.30 5 1.5 4 1.2 5 1.5 3 0.9
Manufacturing 0.25 5 1.25 4 1 4 1 3 0.75
Marketing 0.20 4 0.8 5 1 5 1 4 0.8
Distribution 0.15 4 0.6 4 0.6 3 0.45 3 0.45
Capabilities and
Skills
0.10 3 0.3 2 0.2 3 0.3 2 0.2
4.45 4 4.25 3.1