INDUSTRY

ANALYSIS
Kelompok 5:
• Alek Monaris Simarmata
• Arif Hayyu Nurrasyid
• Egi Haritsman
Analisis industri berdasarkan kerangka kerja tersebut memfasilitasi tugas – tugas
penting berikut :

Penilaian industri dan kinerja perusahaan

01
Identifikasi faktor kunci yang mempengaruhi kinerja dalam
02 hubungan perdagangan vertikal dan hubungan kompetitif horizontal

Penentuan bagaimana perubahan lingkungan bisnis dapat

03 mempengaruhi kinerja

Identifikasi peluang dan ancaman dalam lanskap bisnis. Dalam hal

04 ini, analisis industri sangat penting untuk melakukan analisis
“SWOT”.
SWOT adalah singkatan dari kekuatan, kelemahan, peluang, dan
ancaman. Analisis industri memberikan wawasan tentang “OT”
sedangkan Bagian Tiga teks memberikan panduan untuk
mengidentifikasi “SW”
 INTERNAL RIVALRY
• Ada banyak penjual di pasaran
• Industri stagnan atau menurun
• Perusahaan memiliki biaya yang berbeda
• Beberapa perusahaan memiliki kapasitas berlebih
• Produk tidak dapat dibedakan / pembeli memiliki
biaya peralihan yang rendah
• Harga dan syarat penjual tidak dapat diobservasi /
harga tidak dapat disesuaikan dengan cepat
• Ada pesanan penjualan dalam jumlah besar /jarang
• Industri tidak menggunakan praktik fasilitasi atau
memiliki sejarah harga koperasi
• Ada penghalang yang kuat
• Ada elastisitas harga industri yang tinggi dari
permintaan
ENTRY
• Produksi memerlukan ekonomi penjualan
yang signifikan – skala efissien minimum
relatif besar terhadap ukuran pasar
• Perlindungan pemerintah untuk petahanan
• Konsumen sangat menjunjung tinggi reputasi
/ konsumen loyal terhadap merek
• Akses peserta ke input utama, termasuk
pengetahuan teknologi, bahan mentah,
distribusi, dan lokasi
• Kurva pengalaman
• Externalitas jaringan
 SUPPLIER POWER BUYER POWER

• Pemasok dipasar hulu yang kompetitif • Daya Saing Pasar Input.

memiliki “kekuatan tidak langsung” karena • Konsentrasi Relatif Industri yang
mereka dapat menjual jasanya kepada Dipertanyakan, Industri Hulu dan Hilirnya.
penawar tertinggi • Volume Pembelian Perusahaan Hilir.
• Pemasok hulu juga dapat mengikis • Ketersediaan Input Pengganti
keuntungan industri jika (a) mereka • Investasi Khusus – Hubungan oleh Industri
terkonsentrasi atau (b) pelanggan mereka dan Pemasoknya.
terkunci dalam hubungan dengan mereka • Ancaman Integrasi Maju oleh Pemasok
karena investasi khusus hubungan • Kemampuan Pemasok untuk Membedakan
• Pemasok input dengan kekuatan langsung Harga
dapat menaikkan harga ketika target
pasarnya berkembang, sehingga
mengekstraksi sebagian keuntungan
pelanggannya
• Pemasok yang kuat dapat menurunkan harga SUBTITUTES & COMPLEMENTS
ketika pasar sasarannya sedang kesulitan
• Ketersediaan pengganti dekat dan / atau pelengkap
• Karakteristik harga nilai pengganti / Pelengkap
• Elastisitas harga dari permintaan Industri
APPLYING THE FIVE FORCES: Some Industry Analyses
CHICAGO
HOSPITAL
MARKET
THEN AND NOW
Chicago Hospital Markets Then and Now

For 30 years up until the mid-1980s, hospitals thrived. Then, between

1985 and 2000, an average of 75 U.S. hospitals went bankrupt annually
(about 1.5 percent of the nation’s total each year)

Market Definition

Market definition requires identifying both product and geographic

markets. We consider the product market to be acute medical
services such as maternity care, surgery, and complex diagnostic
services. The geographic scope of hospital, research shows that
patients strongly prefer to visit nearby hospitals.
 Internal Rivalry
There were almost 100 community hospitals in the Chicago market in 1980. Even with dozens of
closures, about 70 hospitals survive.

The relatively large number of hospitals is just one factor that could intensify internal rivalry.
Another factor is the considerable variation in production costs, which stems from differences in
productive efficiency

Internal rivalry in 1980 was benign, largely because patients were passive shoppers. When choosing a
hospital, patients deferred to their physicians, This created a kind of loyalty that greatly lessened the
importance of hospital prices.

The combination of price-insensitive patients and physician-dominated admission decisions limited the
incentives of hospitals to use price as a strategic weapon.
 Internal Rivalry
During the 1980s, managed-care organizations (MCOs) entered the Chicago market and began
selectively contracting with hospitals that offered the best value. MCOs gave enrollees financial
inducements (in the form of lower copayments) to encourage them to select the contracting
hospitals. By steering patients to the “preferred” hospitals, insurers effectively increased price
elasticities of demand.

Three additional features of selective contracting intensified internal rivalry.

01 MCOs treated all hospitals as nearly identical,

seemingly ignoring patient loyalties.

02 price negotiations between insurers and hospitals

were secret, encouraging hospitals to lower prices
to win contracts.

03 Hospitals were under intense pressure to win each

individual contract without concern for future price
rivalry
 Internal Rivalry

- Price rivalry intensified.

- Hospitals lowered prices by 20 percent or more to stay competitive
- Profit margins declined, and many Chicago-area hospitals closed.

Two recent trends have done much more to soften competition.

➢ First, patients rejected MCOs with “narrow” networks. Today’s MCOs must include nearly all hospitals in their
networks if they are to attract enrollees. Hospitals know this and hold out for higher prices.

➢ Second, there has been considerable consolidation in regional submarkets, including the city of Chicago and the
important North Shore suburbs. Mergers among hospitals in these submarkets have further strengthened the
hands of hospitals in their contract negotiations with MCOs.
 Due to regulation, only one entirely new hospital has been built in
Chicago in decades. A state board must approve any new hospital. The
applicant must demonstrate that the projected utilization at the new
hospital could not be met by existing hospitals.
Entry Incumbents may be protected by other entry barriers.

Would also have to establish a brand identity since patients may be

reluctant to trust their health to an unknown entity.
 Substitutes and Complements

In 1980, a patient who needed surgery or a complex diagnostic procedure went to the hospital. Since then,
there have been dramatic improvements in surgical technique, anesthetics, and antibiotics, so that many
types of surgeries can now be safely performed outside the hospital.

Home health care has also boomed, allowing providers to monitor the recovery of surgical patients and
care for chronically ill patients in patients’ homes.
 Supplier Power

The main suppliers to hospitals include labor (nurses,
technicians, etc.), medical equipment companies, and
drug houses. Hospital-based physicians, such as
radiologists, anesthesiologists, and pathologists (RAP
physicians), are also suppliers.
Medical suppliers without monopoly power cannot
credibly threaten to hold up hospitals to obtain higher
prices. Suppliers whose innovations are protected by
patents can command very high prices if their products
make the difference between life and death.
 Buyer Power

Buyers include patients, physicians, and insurers who The largest buyer, Blue Cross of Illinois, has roughly 60
decide which hospitals will get business and how they percent share of the private insurance market and
will be paid. can command significant discounts.

Patients and their physicians in 1980 did little to punish At the same time, government payers have used their
high-price hospitals. Insurers in 1980 were also passive, regulatory powers to set prices well below the levels
reimbursing hospitals for whatever they charged. negotiated by private insurers.

Buyer power in 1980

was low
 Buyer Power
Medicare, which insures the elderly and disabled,
pays a fixed price per hospital stay— adjusted for the
diagnosis—forcing hospitals to swallow excessive
treatment costs
Medicaid in Illinois pays hospitals 25 to 50 percent less
than the amount paid by other insurers for comparable
services.

Physicians may also wield significant power,

especially those charismatic and highly skilled
physicians who can attract patients regardless of
where they practice.
COMERCIAL
AIRFRAME
MANUFACTURING
Commercial Airframe
Manufacturing

Airbus Industries and the Boeing Company have been in an effective

duopoly since Lockheed pulled out in 1986 and Boeing acquired
McDonnell Douglas in 1997. Despite limited competition, Airbus and
Boeing still face threats from each other, as well as from potential
entrants.
 Boeing Boeing Airbus Airbus

❖ Established in 1917 ❖ first commercial aircraft ➢ established in 1967 ❖ Airbus has produced
❖ built military aircraft for 1958 ➢ Airbus did not deliver its 7000 aircraft
the better part of 40 years. ❖ Boeing has produced first plane until 1974.
15000 aircraft

In the past few years, both Boeing and Airbus have each delivered about 400 new planes annually.

European governments heavily subsidized Airbus during its early years. These subsidies enabled Airbus to undercut Boeing’s prices
and build market share.

Boeing remained price competitive, in part, because it enjoys scope economies from its military aircraft division.
Internal Rivalry

Demand for air travel grew steadily throughout the 1990s. Although
11.09.01 air travel declined during the 2001 recession (and particularly after
the September 11 attacks), it quickly recovered.

1990 11.09.21
Demand for air travel grew air travel declined during the
steadily 2001 recession (and particularly
after the September 11 attacks),
it quickly recovered.

2001 2008
At the same time, the emergence financial collapse, new orders
of new carriers in the Middle plummet by over 80 percent.
East and Asia, and ever-
increasing demand by business
for comfortable transoceanic
travel, have fueled demand for
the new Airbus 380 and Boeing
787
 Internal Rivalry

the Boeing 737 and Airbus A320 have similar seating capacities,
performance, fuel economy, and flying range. airlines have
developed loyalties

Flag carriers British Southwest and

Airways and Air Ryanair exclusively Boeing and Airbus have exploited by making parts interchangeable
France preferred fly Boeing 737s across different models.
Airbus

Airbus Boeing
 Barriers to Entry

High development costs and the

experience-based advantages of the
incumbents combine to make entry into
the commercial airframe manufacturing
industry extremely difficult.

some airlines prefer to purchase from

the same manufacturer.
 Substitutes and Complements
Passengers are weary of hub-and-spoke travel and
the associated delays and lost baggage. Joint venture ATR offers smaller
turboprops to carriers looking for
Demand for these routes has been too small to fill the low-cost short-haul aircraft.

smaller Boeing and Airbus jets High-speed rail may be a

Around 1990, Canadian manufacturer particularly important substitute,
Historically, Boeing and Bombardier and Brazilian manufacturer for it matches or exceeds the
Airbus made the only Embraer filled this important void. The airlines’ “product performance
planes that met airlines’ Bombardier CRJ series and Embraer ERJ characteristic” of high-speed
needs for medium - and series “regional jets” seat 50 to 90 passengers transport.
large-capacity planes and are capable of flying over 2,000 miles. now
capable of flying offer newer and larger planes capable of
thousands of miles. But seating up to 125 passengers
this is no longer the
case.
Supplier Power
There are a few suppliers Unionized labor has
that may be in a position of substantial supplier power.
strength when bargaining Currently, nearly half of
with Boeing and Airbus. Boeing’s workforce is
For example, General unionized.
Electric competes primarily
with Pratt & Whitney and
Rolls-Royce in the
manufacturing of jet
engines. When Boeing and
Airbus do well, these three
firms can negotiate more
favorable supplier
contracts for themselves.
 Buyer Power
There are two categories of buyers,
each of which has limited power.
Some airlines own their own fleets,
but many also lease aircraft from
aircraft-leasing companies.
The major airlines and the largest leasing
companies often place orders for dozens of
planes at a time. approximately 15 percent of all
Boeing or Airbus commercial airframe orders in
a single year
in times of economic downturns, buyers have
the ability to cancel deliveries of aircraft, directly
affecting the profitability of Manufacturers.
PROFESSIONAL
SPORTS
 PROFESSIONAL SPORTS
INDUSTRY
Will focusing on U.S most popular sport leagues such
as Major League Baseball (MLB), National Basketball
Association (NBA), the National Football League
(NFL), and National Hockey League (NHL).

Perform our analysis by assuming that each team

owner are trying to maximize their profits, even in the
reality many team owner will sacrifice the profit to
gain a title “owning a sports team is the ultimate
billionaire’s hobby”
 INTERNAL RIVALRY
Competing on the playing field
≠
Competing in the business world

OUTPUT MARKET INPUT MARKET

• Low profit threat. • High profit threat.
• Require considerable coordination within teams • The playing field is the market for labour (player
and creating competitive balance to attract fans. union).
• Sports teams attempting to maximize their • Competing against other teams and the player
revenue from ticket revenue and merchandising itself to gain profit for team.
revenue against other entertainment business.
 ENTRY
• Each league has rules
governing the addition of new
franchises. (Forced to High Barrier To
purchase existing team)
• Hard to start new team on Entry
current league, new owner
can create new league but the
risk are too high It has low threat on profit
SUBTITUTES AND COMPLEMENTS
Professional sports teams compete
for entertainment dollars. TV program that broadcasting
sport program.

Cheerleaders
Sport Gambling
Costumed Mascot

Music Performance
SUPPLIER POWER
Cities are become the supplier for professional sport industry by
providing stadium for the industry. But recently due to economic
downturn, grown skeptical of the purported economic benefits from new
stadiums. Sports team owners can no longer count on local governments
to build their stadiums and must increasingly rely on corporate
sponsorships or their own personal wealth. This condition makes supplier
power have low threat on profit.

Player Union. Most players are trained in college, making undergraduate

sports teams a critical supplier to professional sports. As discuss on
internal rivalry part that market labour have an important role on team
success gaining its profit from attracting fans to increase of merchandise
selling.
BUYER POWER

The buyer of professional sport industry are Television Network (in U.S.
there are four major sport cable system: ESPN, Comcast, Turner
Broadcasting, and NBC Sport). But the condition are number of buyer are
higher than number of league itself, the upper hand in these negotiations
will belong to the sports leagues. The same applies to negotiations over
the right to broadcast games locally on television and radio.
PROFESSIONAL SPORTS CONCLUSION
PROFESSIONAL
SEARCH FIRM
PROFESSIONAL SEARCH FIRM
“When businesses want to hire talented managers for
corporate or midlevel jobs, they often outsource the
search to independent professional search firms. Some
professional search firms compete globally, helping large
multinational firms fill senior management positions.
Smaller clients usually confine their search nationally or
regionally, and often retain smaller search firms with
greater local knowledge and experience”.

A successful search firm consultant must know who is

working where (put a right man in the right place), what
compensation will they get, and able to persuade talented
performers to leave their current employer for the client
organization.
 INTERNAL RIVALRY
It’s a $10 Billion
industry
But highly fragmented and differentiated geographically
The top 10 search consulting firms have a combined market
share of just 11 percent, and more than 80 percent of search
firms collect less than $2 million annually in professional fees.
Bigger firm concerns of large international clients seeking to
attract senior executives. Smaller search firms may specialize in
specific industries or regions

Intense price competition

But clients link price and quality, perhaps because price has an
important incentive effect. In particular, clients may fear that a
search firm working for a cut-rate retainer might devote less
effort to the search.
 ENTRY
It’s a Monopolistic
market
The theory of optimal pricing implies that firms in
differentiated product markets set prices in excess of
marginal costs. If prices are high enough to more than
cover fixed costs, firms will earn positive economic profits,
inviting entry.
Another Entry Problem
It can take a new search firm 18 months to
establish relationships with employers and
potential search targets. It is not enough to
have a lengthy contact list. The firm must also
have a demonstrated ability to match
managers to employers. The resulting
advantages of incumbency are especially
large for executive-level search because the
stakes are higher and the search firm may
need to know about potential candidates
around the world across a range of industries.
SUBTITUTES AND COMPLEMENTS
Management consulting firms already working with
a client on another matter could be substitutes.
Indeed, the industry developed out of such
consulting efforts. (McKinsey starting doing
executive search in 1957.) However, management
consulting firms generally lack the specialized
knowledge and focus of search firms.

Other potential substitutes include specialist

human resource firms, such as Manpower, and
even some Internet-based employment listing
firms. While these have the potential to compete
against lower-level locally based searches, they as
yet have not proven themselves to be viable
substitutes for major executive search firms,
largely because they deal with different pools of job
candidates.
 SUPPLIER POWER
The supplier on this industry
are the search firms itself.
The new search firms are less threatening than the successful
incumbent firms are joining a different firm and take with them
their specialized knowledge of clients and potential hires,
coupled with their track record of success.

Pool of prospects (candidate)

We should also consider the pool of prospects to be suppliers because search
firms cannot meet their clients’ needs without them. At any time, the best
prospects may be speaking with several search firms. This may force the
search firms to spend more time cultivating their prospects (for example,
through additional phone calls and meetings), which drives up the cost of doing
business.
 BUYER POWER
Buyers have power when they can lower the industry
margins by demanding a higher level of service or lower
prices, but powerful buyer may not insist on lower price
(already discuss in internal rivalry part) but may instead
ask for incentives for quality service, such as penalties for
failure to identify candidates in a timely fashion or
bonuses if the hire proves to be successful.

Employers searching for CEOs have a lot of power

because the CEO is likely to replace subordinates and will
probably be partial to the same search firm.
PROFESSIONAL SEARCH FIRM
CONCLUSION
 SUMMARY
• Industry analysis provides an overview of potential profitability of firms
in industry.
• The five force can be a comprehensive tools of industry analysis.
• Internal rivalry can threaten profit if competition drives price towards
cost.
• The entry can threaten profit if new firm can easily enter the industry.
• Substitute can affect sales and price rivalry.
• Buyer and supplier can affect directly toward bargaining power and
negotiation.
• At the and, profit can be threaten by all five factor on Five Force.
THANK YOU