General Forces and a Porter’s Five Forces analysis of the industry of the organization you selected for your SSP.
Pep Boys is an organization that has encountered a lot of up’s and downs in their 95-year history. One instance of their difficulty was in the late 1990s. With Porters Five Forces analysis and General Forces Analysis Pep Boys is evaluated as follows. The supplier power of Pep Boys is questionable because they depend on so very few suppliers which leaves them very thin in the replacement parts time resupply (Boys, 2015). The buyer power is vulnerable because pep Boys depends so heavily on name brand auto parts, and not on quality parts which carries their own private label (Boys, 2015).
Competitive rivalry affects Pep Boys with …show more content…
Under the General Forces Analysis, Pep Boys trends and forecast in five categories of forces in the industry environment indicate that for Pep Boys to survive in markets that are a threat to their competitiveness the organization must shore up their ability for availability for resupply. One of their competition has a warehouse system that works in a sort of daisy chain in that warehouses that are short on replacement parts to supply their stores can just requisition parts from nearby warehouses that have an abundance of parts they need (Boys, …show more content…
External forces that could impact the company come from a variety of sources, not to mention the fact that Pep Boys is vulnerable to supplier issues which leaves Pep Boys vulnerable to being out of stock of critical parts for their service departments to utilize. Out sourcing stock order parts becomes expensive especially if the parts needed are name branded replacement parts (Boys, 2015).
Identify potential opportunities or threats created by these five forces. Justify your response.
Opportunities for Pep Boys are strong aftermarket demand in the U.S, Growth through e-commerce, and expansion of service and tire centers. The threats are intense competition, rising labor wages in the U.S., and stringent regulations (Porter, 2008). Pep Boys wages are not in line with their industry competition which forces experienced employees to leave for the competition (Boys, 2015).
Finally, evaluate the utility of General Forces Analysis and Porter’s Five Forces analyses for developing organizational strategy. Identify 3–5 opportunities, and 3–5 limitations for each analysis
Pep Boys is an organization that has encountered a lot of up’s and downs in their 95-year history. One instance of their difficulty was in the late 1990s. With Porters Five Forces analysis and General Forces Analysis Pep Boys is evaluated as follows. The supplier power of Pep Boys is questionable because they depend on so very few suppliers which leaves them very thin in the replacement parts time resupply (Boys, 2015). The buyer power is vulnerable because pep Boys depends so heavily on name brand auto parts, and not on quality parts which carries their own private label (Boys, 2015).
Competitive rivalry affects Pep Boys with …show more content…
Under the General Forces Analysis, Pep Boys trends and forecast in five categories of forces in the industry environment indicate that for Pep Boys to survive in markets that are a threat to their competitiveness the organization must shore up their ability for availability for resupply. One of their competition has a warehouse system that works in a sort of daisy chain in that warehouses that are short on replacement parts to supply their stores can just requisition parts from nearby warehouses that have an abundance of parts they need (Boys, …show more content…
External forces that could impact the company come from a variety of sources, not to mention the fact that Pep Boys is vulnerable to supplier issues which leaves Pep Boys vulnerable to being out of stock of critical parts for their service departments to utilize. Out sourcing stock order parts becomes expensive especially if the parts needed are name branded replacement parts (Boys, 2015).
Identify potential opportunities or threats created by these five forces. Justify your response.
Opportunities for Pep Boys are strong aftermarket demand in the U.S, Growth through e-commerce, and expansion of service and tire centers. The threats are intense competition, rising labor wages in the U.S., and stringent regulations (Porter, 2008). Pep Boys wages are not in line with their industry competition which forces experienced employees to leave for the competition (Boys, 2015).
Finally, evaluate the utility of General Forces Analysis and Porter’s Five Forces analyses for developing organizational strategy. Identify 3–5 opportunities, and 3–5 limitations for each analysis