Background
The CEO of the biggest photo film manufacturer in the country wants to start offering film development services. They're seeking your guidance on how to evaluate and approach this idea. Your task is to help the CEO figure out the best way to move forward.
Key Points to Consider:
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Industry Attractiveness: Use Porter’s five forces analysis to understand if entering the film-developing business is a good idea or not.
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Marketing Mix (4 P’s): Consider which aspects of the marketing mix (Product, Price, Place, Promotion) would be most effective for film development.
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Competitive Response: Analyze how existing competitors might react to the company's entry into the film development business.
Final Analysis
To advise the CEO on entering the film developing business:
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Industry Attractiveness:
- Examine the forces that shape the industry: rivalry among existing firms, threat of new entrants, bargaining power of buyers and suppliers, and the threat of substitutes.
- Gauge if the film developing business is financially attractive and has room for growth.
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Marketing Mix (4 P’s):
- Determine the best approach regarding the product offering (e.g., types of film developing services), pricing strategy, the most suitable places to offer these services, and how to promote them effectively.
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Competitive Response:
- Anticipate how other businesses in the industry might react to the entry of this company into the film-developing market.
- Devise strategies to handle potential competition and stand out in the market.
Suggest a plan of action and strategies that would help the company succeed in the film-developing business, considering the challenges and opportunities in the industry, including leveraging distribution channels effectively and considering partnerships like the "store within a store" concept with large retailers like Wal-Mart.
