Sample of SWOT, Porter’s 5 forces, Value chain analysis

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Value Chain and Porters forces

Exercise 1:
SWOT Analysis
Toys R Us

Strengths Weakness

1. Diverse range of toys and baby 1. lacking the competitive advantage- other
amusement products. stores –same or similar product better
price
2. Company chain operating in 35 countries
2. Toys are not unique, they may be found
with over 800 stores. at different brand
3. well-developed e commerce site

Opportunities Threats
1. Alliance of the company with its 1. Strong market competition – Big W, Toy
competitor Amazon world, Target etc.
2. The diversity of locations if introduced in 2. Low cost manufactures of toys
emerging economies 3. Attractive packages attract the
customers – recent past many others
have done this better
 Sample of SWOT, Porter’s 5 forces, Value chain analysis
Porters 5 forces.
Threat of new Substitute: High
1. Many comparable substitutes
2. Most parents are price sensitive
Bargaining power of Consumers: High
1. Price sensitive market
2. Buyers are fragmented and price sensitive
i.e. low loyalty
3. Competition from low cost dealers
4. No specific toys r us line
Threat of new Competitor: (4 points each)-
Low
1. Because of Higher ingredients prices,
slim margins and more competition
from traditional channels
2. Existing competitors keeping price
low making it harder for new
entrants.
3. Current competitors will have first
movers advantage
Bargaining Power of Suppliers Low
1. Long relationship with supplier
2. Buy in bulk
3. Few big ditributors
Rivalry Among existing Competitors: High
1. Many competitors like dominos, crust pizza,
dine in shots, local stores
2. Fierce marketing by other pizza sellers
3. High due to threat of substitutes like frozen
pizza at Coles
 Sample of SWOT, Porter’s 5 forces, Value chain analysis

Value Chain Analysis

Inbound Logistics Operations

1. sourcing activities to procure and Pizza Hut run’s on the franchise model
standardize all of the produce,
ingredients for fast, consistently, and
delicious Pizza
2. capitalize on economies of scale

Outbound Logistics Marketing and Sales

2 models 1. Large invest in Mktg to increase sales
1. In store dine in 2. Also to compete with other fast food
2. Home Delivery joints

Service Possible ways to reduce their margin?

Every Pizza Hut store provides global value
to customers –affordable and fast
delivery for their customers
1. Procurement – better deals with
suppliers to improve their margins
2. Create platform where reduce
people involvement or reduce
training requirement
3. Efficient technology for better
productivity