Reference no: EM131229637

Please paraphrase this file very well. Also, fix everything that you believe is wrong from the answer of each of the questions.For the 1st question its talking about Cola Wars and the second is about True Religion which is a denim company) These are case studies that you could find many articles about them online if needed Please fix whatever is missing.

1. If vertical integration and consolidation happened between the concentrate producers and bot-tlers:

A. how would that change the industry attractiveness (5 forces)
B. what are the weaknesses in the 5 forces ***Its in week 2 slides in BB 33¬38
C. what are some changes that could be made to the (5 forces)

2. True Religion

A. Discuss True Religion's distinctive competency.
B. Provide two resources or capabilities of True Religion's competitor Seven of allmankind.

? design

This is resources and capabilities of the other companies from the case

C. How can True Religion achieve a sustainable competitive advantage?

3. Bonus question about the horse industry

Q1.

a)Assumption: is that CPs and bottlers have vertically integrated in the soft drink industry, so now there is no longer difference between themselves as products because now they provide the same products.

Like now , CPs now will be able to bottle their products in their own manufactrs , and bottlers now produce their concentrates. starting with barriers to entry are moderate With the ab-sence of the government regulations, there have been fewer barriers to the entry to the high prof-itable industry by the soft drink industry. As a result of this, soft drinks have tried to raise their attractiveness by utilizing & integrating Michael Porters five forces. They have done so by mak-ing sure that they put into practice all the aspects which are core and are of beneficial to the or-ganization. Initially, it can be noted that CPs was unable to pass off all the cost, and this was due to the existence of operating income value that was ranging from 10-25% from the concentrates producers and the bottlers. This was an excellent move to open gates for new entrants to the ac-tivity. But due to the existence of some competitors, the large companies could take a significant percentage of 70% market shares, it's the same as before the vertical integration which ground the Coke and Pepsi to operate on the same level there fore save good amount of money. A focus on the future market and how the market price should be, and it is clear that price war in future will not be likely to happen due to stability that should have been created. The most helpful group in the marketing environment will be the buyers; this is because they will have a higher bargaining power that will eliminate the CPs to pass 50% of their cost that will have some mod-erate effects at the expense of the products. Though, this will have a reverse expectation on the sides of the suppliers where their bargaining power will increase. , Therefore, the integration of the bottlers and the CPs will result in a fight of the same suppliers which in turn helps them to have control over the price of the raw materials used in the processing. The implementation of this will create a conducive environment for marketing, which will translate to entrants, which will increase profitability. Threat of substitutes &The rivalry, there will not be a big change the threat is moderate at most since there is no price war ( wa-ter, tea, Juice , coffee).

b) Assumption the weakness of porters

In the Porters force frame, weakness can be detected and have some impacts on the imple-mentation of the framework. inability to determine the organization strength and weakness in an internal environment. This has been a challenge has it only focus on the external attractiveness of the industry and the VRIO frame of the organization, weakness is on the lack of giving a particu-lar life cycle of the industry has porters only follows a general route but not giving an exact. the issue to do with digitalization, deregulation & globalization , in porters 5 model the three aspects are not well elaborated and they are always essential in the progress , is the issue to do with the inability to give a picture of the organization given that here are a lot of dynamics that are emerg-ing in a marketing environment that can give changes in the appearance and operation of the in-dustry. Example the technology they keeps getting newer and innovated

The other one is the claim that all industries are profitable If the follow the same rules and this claim is wrong since even if they follow the rules of attractiveness they can always be profit-able does not take in consideration of time. Its difficult to judge the markets with higher compe-tition because they can change very quickly.

Another one is that it doesn't take in consideration the other strategies venture capital ex-ample alliance like the example in the Petroleum Exporting industry Countries. Example Saudi Arabia & Russia.

Also go into alliances to self-protection to kill competition complementors and complementary that a lot of scientist recommended for it to exist as the 6th force it might not increase or decrease the competitiveness of an industry, just add a better layer to competitive environment.

c) Assumption: The change in consumer preferences towards healthier alternatives( using sugar cones instead of real sugar ) (non-CSDs) it has no deemed in the industry of soft drinks but of the drinks overall. the different drinks that Coke and Pepsi offers (biggest companies in soft drink industry), Example, juice, teas, energy drinks, etc.

While giving a determination of customer preference in a marketing environment, the critical factor that needs to be address into consideration is the fact that Porters Fiver Forces are always the pillars. Therefore, the most substantial components of Porters exist in two ways, those that how are the threats of subsidies and those that give the strength of the rivalry among the es-tablished companies. An increment being experienced in the country, sugar prices goes up based on Porters five forces that changed for CPs. The shift has been assumed to be due to the increase in the consumer prefrence within the marketing environment. With the higher number of com-panies entering the market, before soda was THE DRINK you can see that in the ‘50s movies and shows we can note that there arises in the threats of substitutes , peoeple are moving to the now healthier life style with less consumetion of sodas and more to the Jucing and smoothies . Therefore, companies like kombucha ( the healthier choice) and do it your slef with the blender and the super markets brands like trader Joes juice selection , that come to the market to join the likes of Coke and Pepsi. The big movment to skinny teas in retailer and coffe shops as well, there is a heighten situation of rivalry between companies which come due to substitution which has given a stock ratio of product to be in 1 to 1 ration. The change of the marketing environment has seen it best for the companies to intensify the rivalry among themselves because consumers are moving to health life style of products on the market. This has seen the bigger companies who used to dominate the market to act on it and move quick make fast decisions for them to have a continued relevancy in the marketing environment, Finally this shows how the innovation in this products is slow and need to capitalize on this fast or they can lose their customers

Q2.

a) Assumption

Define competency and value chin weakness

For a company to maintain its existence in the marketing environment, it has to ensure that it defines its strengths for it to be able to distinguish the goods and services being produced by their competitors. While trying to do so, they have to produce at lower costs which will make them accrues a higher revenue. From this perspective, the company will be in a position to enjoy a competitive advantage over its opponents. To evaluate the ability of the organization, some fac-tors are considered, and they include assets tangible and intangible, Income statements, innova-tion and skills. These factors are critical in upholding the competitiveness of the organization.

The source of the Holy Grail is called distinctive competencies

Weakness of the value chain:

Its should be analyzed with customer segment so we can have internal and external data, to determine the value or competency of a product if the customer is willing to buy and pay for it so the value chain should be analyzed to determine if the value is created another weakness is the value chain is generally used to position the company based on it competitors with assuming that the revelry is the only way firms can be profitable that isn't taken in consideration the loyalty of the customer

Other Business example the IT industry is not structured to get information for value chain analysis.

b)

Assumption: tow resources or capabilities for seven for all mankind

It takes a lot of time / capital to be able for the competitors to reflect 7 for all man kind value chain

Sevens reputations for the company entails the lowering the company's cost and value crea-tions. This has been of importance has it allows the consumers who are the potential customers of the company to be aware of the company's reputation This has brought a distinction between the business who seems to produce similar products within the marketing environment; this can be seen in the quality of products that each company provides. In the productions of jeans products, the quality will be determined by the design in which the jeans. This has seen the jeans products cost to be shifting due to the cost companies are incurring in hiring the various designers that can also products the next big trend so not only get this season revenue but the next one as well this helps them increase the sale in value chain . An effect of this is witnessed VF Corporation where the purchase of sevens has given seven multiple advantages to sister company. This was not only an advantage of earning capital, but they were in a position to predetermine the future sales. Therefore, the implementation of the sevens has given more insight on how the companies are operating by providing more information on profitability.

Lastly, the brand reputation of the company goes in handy with the quality of leadership that is fond within the organization which will be able to give the right directions to the business and maintaining their competitiveness in the marketing environment.

The good reputation of the company for making jeans that is fashionable that made a big brand loyalty

In analyzing the VRIO of the company the above sources I mentions can increase the value of the company by lowering cost and increase the revenue , rare because the have a huge band loyalty that cant be obtain by other competitors , hard to imitate its expensive to do so 7 for all mankind has the capital from the venture of VF , the successes of the organization is strong , management has good leadership skills and still is recognized as a luxury brand , so the company has distinctive competitive competencies

c) Assumption ( VRIO + Value Chain )

Diagram in last page

Analyzing the valuable true religion jeans though relatively expensive than the other brands have always won the market share. Therefor value of such a product is usually highly rated, create a lifestyle brand and wins profound consumer loyalty.

TR avoid a decline sales during the recession period. sales in increased by 21% between 2007 and 2009 & gross margin from 2007 to 2010 increased from 57% to 63.4% 74% of its sales are driven from denim sales in 2010 in regards to the design team, originally Lubell's fashion sense of then Ziahaad Wells, the previous Levi designer, The firm's ability to find/create motivate designs from the premium denim market is a valuable and that the TR sales are evidence. I also think this capability is rare, as there are not many people on this earth who can predict or create fashion trends on a continual basis.& Rareness the materials that are used are not rare, its used in a broad range of jeans company's the premium jeans ranged from the tra-ditional 100% cotton but the brand image that it created is rare Partnering with international al-liances to increase share marked and still be able to control the brand image globally, company-owned stores, and celebrity marketing campaigns.

True religion distinguish itself by the tag Made in the USA that gives the idea of the ultimate American life style with the cowboys from the old wild west and the hippie Coachella idea that its basically international and people will pay a lot of money for that, this is difficult to imitate Organization true religion owns its store, gets free celebrity endorsement and capturing a big share of the jeans market Therefor it has a sustainable competitive advantage for the brand image as True religion but the product itself the jeans of true religion is not competitive

In talking about to the Value Chain analysis of TR's , I would say the firm rates high on marketing and sales with regards to its primary activities. Considering that the firm's strategy was to outsource everything except design and marketing, but marketing is consider moderate since TR receives for denim receive free celebrity endorsements because celebrities are photo-graphs wearing various brands of jeans , so the cost of manufacturing is low since again they outsource and deign is high and marketing is high as well in cost as for the value its high as well with brand loyalty the value and marketing is consider high since people recognize the horse shoe symbol on the jeans pocket and marketing value is as well and they hire local designers, own store in 2006 they owned there store because TR wanted to introduce boarder range of apparel so basically they value the store so they can able to venture to other cloth industry but the cost was high , in retailor store it was the lowest denim with shelf space so basically the value was low the lowest among luxury denim 20 , great customer services since it was sold in de-partment store so it basically fall under the department store jurisdiction

3. Bonus:

1) Assumption Horse Macro-environment for the decline in the horse industry China has one of the emerging horse markets as it represents the largest market share. the Chinese market has constraints that have made the horse market to go down. Most insurance companies increased the premium rates for the investors in this industry. Consequently, this was a major setback to the industry as many of them opted for other investments.

Political factor For example, the closure of slaughter in the country was politically moti-vated.. It is imperative to note, the government came up with policies with the aim of regulating this industry. However, this regulation made it more complicated the horse industry.

The social part e horses are drugged sometime making it unfit , This has been a major issue , become widespread in many parts of the country thereby paralyzing the horse industry.

Additionally, demographic change, trend majority of them have lost interest in this industry in the ages of 30- 40. Expectedly, this has dramatically contributed to the number of horses available for the market.

Technology has also played a major role in down fall of the industry as many investors es-pecially young individuals have resolved to gambling instead of investing in horse industry . The gambling industry is as a high rate compared other industries like horses. gambling as short cut to financial success the idea that some people have

The widening gap between the rich and poor has greatly contributed to the dying horse in-dustry. This gap was worsened by the economic recession that ended in 2008. The industry col-lapsed as result of rise in operating expenses. This derived the investor's confidence.

it's important to consider either to sell the horse or to provide the necessary service. Specu-lations have been doing round on the reasons as to why many enter the industry, but it is clear that their interest is not to make money but instead the love for a horse that makes them enter. This is raised when there is increase bondage with the horse. Due to this, a difficult will be de-veloped which creates a barrier to many people. The capital that is invested in the horse industry make it very hard to leave the industry and investment in the people and horses establish emotion that is a strong bond that you cant woke up one day and decide to leave this industry.