Economics and Finance for Business Assignment -
Research report on Australian businesses - An industry or market analysis
The objective: To conduct a market or industry analysis of rival businesses in an industry of your choice.
The goal: To train you to understand how businesses operate in a dynamic, real-life setting so that you can
(i) analyse competition in an industry and decide whether to enter it and how.
(ii) determine whether there is scope for growth and how to create it.
(iii) evaluate pricing and non-price strategies used in the industry and how you can apply them yourself, creatively, to improve competitiveness.
The relevant topics:
Market structure - what is the state of competition in this industry?
Growth strategies - how can I expand my business's customer base in the long-term?
Pricing and non-price strategies - how can I use these to give my business an edge over my rivals in the short-term?
The title of the report:
'Industry analysis: the competition between _____________ and their growth, pricing and other strategies' (or any other suitable title of your choice), on the first page.
THE TASK -
1. Select two nearby businesses in the same industry that are considered competitors. Location: Manly or in the city, preferably in the CBD area.
Suggestions: two leading cafes (e.g., Starbucks and Max Brenner), restaurants (e.g., Thai or Japanese, poke-bowl shops, Hungry Jacks and McDonalds, Hugos and The Bavarian), organic food stores, big clothing retailers (e.g., Uniqlo and H&M), pharmacies etc.
2. Carry out two types of research: primary research (field research) and secondary research.
Field research is to be carried out as groups: collect, through observation, information about the pricing of the product or services offered (in menus and/or the price boards) and the non-price strategies used (refer to Week 6, Reading #4). Optional: you may speak to store owners, managers or knowledgeable employees to inquire further about pricing, non-price and growth strategies and so on. Share information with the team.
Secondary research is to be done individually: find other information about the companies you investigated (or the same type of companies, whether located in Australia or internationally) to learn about the state of competition in their industries, how they try to grow their businesses, and how they might compete on price- and non- price bases. The sources of information: reputable newspaper articles; books, journal articles or working papers; company, government or industry reports. Avoid blogs.
3. Using the information you gathered, write a report that addresses the questions below.
C. THE QUESTIONS (FOR THE BODY OF YOUR REPORT)
1. Market structure
- What is the state of competition (market structure) in the industry? Who are the competitors? Are there new entrants? What are the barriers to entry, in your opinion?
- What market share (roughly) might each of the competitors have? Can you generate a Herfindahl-Hirschman Index, using your own judgement and estimates?
- How is competition unfolding in this industry (either in the case you selected in Manly or the city, or in general - across the country or worldwide). In other words, what are some interesting stories or developments that have happened in this industry in terms of competition?
Roughly 700 words. Use secondary research.
2. Growth strategies
- Is the business focusing on its 'core competencies'? Or are they also branching out to provide other products or services?
- Do you think that this business should grow or expand? If yes, in what way? Organic growth, horizontal growth, vertical growth, or differentiation? How, specifically?
Roughly 500 words. Use primary and secondary research.
3. Pricing and non-price strategies
- What strategies the two businesses using?
- How are their strategies different (or the same)? Why might they be different (or the same)? What might be their goal of using a certain strategy rather than another, in relation to the one their rival is using?
- If you were a new business intent on competing with them (or if you were one of the two businesses), how would you use pricing and non-pricing strategies or modify existing ones to give your business an edge over rivals? Justify your answer (that is, discuss why)
Roughly 700 words. The primary research component (use photographs from the shops you investigated). You may also use secondary data to support your recommendations (e.g., to show that others elsewhere also use similar strategies, or that this type of strategy is a good one for your situation).
D. THE OTHER SECTIONS
1. Abstract
- Comes before the introduction section
- 200 words or less
- States what you investigated, how you did it, and what your key findings are
- Purpose: a reader can quickly acquire the gist of your report by scanning it
2. Introduction
- Roughly 300 words long
- Introduces the reader to
(i) what the report is about
(ii) what are the subjects of its investigation (which companies) and perhaps some information about them
(iii) how you carried out your investigation or did you report (methodology)
(iv) what your report covers (e.g., "Section 2 will provide an overview of the state of competition in this industry in general... . Section 3 examines what growth strategies this business might already be using and what it could do to expand its business further. Next, Section 4 will analyse the pricing and non-price strategies employed by these two businesses, and how these could be better used to boost sales and capture market share. Finally, the report concludes by considering/looking at/reviewing/discussing what we found so far...").
3. Conclusion
- Roughly 300 words long
- Summarises what you've discovered
- Discusses why what you found is important or interesting, or what else could be examined to improve this market or industry analysis
4. References
- Contains a list of all the reference material (or sources of information) that you cited in the body of your report.
Attachment:- Assignment Files.rar