Case study Maytag

Group Members Ushair Fareed

(20988) Asif JavedAmir

Instructor: Ahsan Durrani

CASE STUDY # 1

Question 1What are the industry’s Dominant Features?

Industry dominant Features

Question 2 Analyze the Porter’s Five Forces acting on the industry. Draw your conclusion about the industry

Threat of New entrains / Entry barriersFactors -

Very Unfavourable unfavorable Neutral Favourable

Very Favorable -

Economies of scale Small ● LargeCapital Requirement Low ● HighAccess to distributionchannels Ample

● Ristricted

Expexted retialiation Low ● High

Differentiation Low ● High

Brand Loyalty Low ● High

Experience CurveInsignificant ● Significant

Govt Action Low ● High

2+2=4 4+4+4+4= 16 5+5=10

Total Score = 20 of 40

Exit barriersFactors -

Very Unfavourable

unfavourable Neutral Favourable

Very Favorable -

Specialized Assets High ● LowFixed Cost of Exit High ● LowStrategic interrelationship High ● LowGovernment Barriers High ● Low

2 3+3=6 4


Threat Of Substitute ProductFactors -

Very Unfavourable


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


Power of SupplierFactors -

Very Unfavourable


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


Power Of BuyerFactors -

Very Unfavourable


Very Favourable -

Number of Important buyers Few ● Many

Threat of Backward integration High ● Low

Product suppliedCommodi

ty ● Specialty

Switching cost low ● high

% of buyer’s cost High ● LowProfit earned by

buyer Low ● High

Importance to final quality of buyers

preception High ● low

2+2=4 3+3=6 4+4+4=12


Competitive RivalryFactors -

Very Unfavourable


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 differentiationCommod

ity ● High

Strategic Stake High ● Low

1 2+2+2=6 3+3=6 4


Conclusion of Porter ModelOverall 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

Question 3What are the three or four major drivers of change for the industry. Justify why you have listed them as drivers of change?

Increasing GlobalizationDue 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 InnovationInnovation 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 .

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 EfficiencyThe 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.

Question 4What are strategic groups within the industry?

0

LOW

HIGH

PRICE

QualityLOW

HIGH

Question 5What 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.

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.

Question 5Develop Competitive profile matrix of the major competitors on these key success factors?

Industry Matrix/ Competitive Profile Matrix (CPM)

Strategic Factors Weight Whirlpool rating

WhirlpoolWeighted

Score

General Electronics

Rating

G ElectronicsWeighted

Score

Maytag Rating

MaytagWeighted

Score

AB Electrolux

Rating

ElectroluxWeighted

ScoreTechnology 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 0.75Marketing 0.20 4 0.8 5 1 5 1 4 0.8Distribution 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

Case study Maytag

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