Based on the description below, perform a Porter 5-forces analysis of the dry cleaning industry.
The Dry Cleaning industry comprises dry cleaning and full-service laundry businesses that provide services to households (account for an estimated 70% of industry revenue ) and commercial clients (restaurants, hotels, and hospitals). Some offer specialty cleaning services for delicate garments and textiles. Households and commercial clients expect fast delivery and turnaround times. Therefore, dry cleaners must locate close to them.
Over the last decade, the industry has experienced declining demand due to unfavorable shifts in consumer preferences. Those shifts include the adoption of business casual attire and increasing purchases of low-maintenance garments made from cotton or polyester that do not need to be dry cleaned. In addition, more consumers use a home washer / dryer and affordable home dry-cleaning kits. More recently, the Covid-19 pandemic made work-from-home more common and led to a temporary or permanent closure of clients from the hotel and restaurant industry.
Dry cleaners are not branded businesses. The top 50 industry operators are estimated to account for less than 13% of industry revenue. The top two national-level companies are franchisors and represent less than 2% of total industry revenue. Typically, dry cleaners have fewer than four employees, and most owners operate only one establishment.
About 75% of dry cleaners use detergents, hangers, highly effective PCE solvents, and generic equipment. Those are sourced from two or three suppliers per state. There is a consensus that PCE harms human health and the environment. New regulations recently started to require new entrants to use eco-friendlier solvents. So far, few suppliers carry eco-friendlier solvents, and even fewer sell the more efficient equipment compatible with those solvents.
Switching to an eco-friendlier solvent is costly since it requires dry cleaners to replace most of their equipment; therefore, most operators hesitate to do so. Greater regulatory scrutiny is expected to drive up operating and capital expenses for dry cleaners. The demand from health and environmentally-conscious consumers and commercial clients is uncertain
2. Firms investing in product attributes that increase Willingness To Pay (WTP) may not necessarily increase their Value Captured. Do you agree/disagree with the statement above? Explain using theory and concepts and provide an example.
3. Four years since its late 2016 launch, Sony PlayStation Virtual Reality (PSVR) goggles have sold less than 5 million units. Sony said that PSVR “continues to be well-received by people worldwide thanks to its high-quality revolutionary VR experience.” “We have been cautious in producing the PSVR to avoid stacking up inventory, but our factories are ready to increase production.”
Analysts, however, suggest that PSVR has not been selling fast enough and point to lower market penetration than estimates. VR can potentially be useful in several industries, such as healthcare and medical devices, education, manufacturing and automation, and military training. The gaming industry, however, is expected to find VR most useful. Gamers are usually early adopters of new consumer technology and are willing to spend on new consumer technology. But so far, gamers are not excited enough
The CEO of Joy Way, a game development company, told investors he is cautious about spending big to create virtual-reality games for PSVR because they might not bring in enough revenue. Game developers are doubtful about the possible gains from games for PSVR as not enough gamers have purchased the console so far.
Reddit PSVR group survey found that 70% of the enthusiastic gamers who purchased the PSVR when it came to the market have stopped using it recently. While they are excited about virtual reality technology, most say they could not find enough software titles or other gamers in a shared digital space to keep them interested.
Sony announced blockbuster titles such as “Final Fantasy XV” from Square Enix Holdings Co. and “Tekken 7” from Bandai Namco Entertainment Inc. are coming for PSVR. Reddit PSVR group members claim that those are mainly adaptations of PlayStation 4 that have limited VR modes exclusively developed for PSVR.
A. Which one of Porter’s 6 forces is the most relevant in assessing the issues facing PlayStation VR? Explain.
B. What would you advise Sony to do to make PSVR become a mass-market item?
4. Producers of Electric Vehicle batteries are critical suppliers supporting the increasing demand to decarbonize transportation. The top global EV battery manufacturers are CATL (China) and LG (South Korea).
CATL has a 35% market share; its largest buyers are Tesla, Honda, BMW, Toyota, and Volkswagen. With a 15% market share, LG’s largest buyers are Hyundai, Audi, Peugeot, and GM. Other EV battery manufacturers are significantly smaller, with a single-digit market share.
Comparing the two companies, we see similarities in Willingness to Supply (WTS), Costs, and major technical attributes of the lithium-ion battery. CATL, however, has been the industry leader for the past decade. The perception is that CATL’s EV batteries are more reliable, safer, and have a higher energy density, resulting in significantly higher Willingness To Pay (WTP) than similar LG batteries.
What should be the strategic position of LG? How should LG respond as far as pricing and product offerings?
Related Completed Projects
Discuss the effects of the global pandemic on the crypto market and compare it to the macroeconomic actions of the FED
What is a extraversion personality?
conduct a case study analysis about Saxon ville Sausage Case(File attached)
Write a one and one-half page, double-spaced summary of the content of the three
films Zodiac, No Country for Old Men, and There Will Be Blood.