External Analysis of Shin Shin Training Centre - Assignment Example

The acquiring of information and skills that guide the students into the future is the factor that keeps the industry going as each side depends on the other to benefit.
Entry by potential competitors

However, like any other industry, this organization faces the risk of encountering the entry of other competitors into their industry. These could exist rivals or a different new firm or organization that offers the same services as the Shin Shin Training Centre. However, this company could have a competitive advantage in this section of the industry and end up pushing this organization out of business. Nonetheless, what counts is the ability of an organization to have to define characteristics that enable the firm to keep its existing customers and also continue getting more customers despite the competition.

Intensity of rivalry
Rivalry can be healthy in an organization, to some extent; rivalry can push an organization in the right direction. This is because when there is a healthy organization in the industry, Shin Shin Training Centre will be forced to improve on the deliverance of their services to their customers to fight off the competition and avoid losing their customers. However, when the competition is too intense in the industry, the number of returns may reduce, and the firm may end up not moving forward. It may end up being forced to cut down on the number of employees they have employed (Narayanan Fahey 2005).

Bargaining power of suppliers
The bargaining power of suppliers also matters in that it may affect the number of returns they bank. In this case, the Shin Shin Training Centre is the supplier of advice and skills on how to improve academic and professional goals. This will then determine the prices they set the type of service offered and how it will impact the number of returns gained by the organization. However, the organization can have either a high bargaining power or a low bargaining power. To maximize profits, the organization needs to be convincing enough to the customer to encourage them to take up their services and assure them of high-quality training (Siaw, Yu 2004).

Bargaining power of buyers

The buyers on the other hand also have a role to play in determining the price at which they will acquire services. They can, therefore, converse ad bargain for a reduction in prices and assurance of high-quality services that will benefit their future as well. When an organization is well vast with the kind of target group they are aiming at selling their services to, then the organization has a better chance of letting the customer feel free to propose the price at which they want to acquire the services (Pike 2001).

Threat of substitutes

This is also another factor that may affect the way the organization is performing in the industry. They may encounter other companies that are trying to bring a new product into the industry that works in the same way as the services or products offered. The difference between the substitute would be in the quality and price which may lead to the Shin Shin Training Centre either reducing the prices of their services or minimizing the staff. An organization needs to be ready to deal with such matters and have acted to take to promote its services and products and maintain the customers that they already have.

According to Andrew Grove’s sixth force, there are six forces involved in promoting the success of the company. The competition, the entrance of new firms in the market, the end users and buyers, suppliers, substitutes, and complementary products. All these factors though separate contribute to one course of determining the performance of the firm in the industry. The Shi Shin Training Centre then considers the competition and the type of entrants in the industry as well as the complementary services that they have to offer. These factors will enable the organization to upgrade various aspects of the organization such as the quality of services delivered (Grundy 2006).

While analyzing the Shin Shin Training Centre according to the Industry life cycle analysis model, the organization seems to be in a mature growth phase. This stage involves marketing and coming up with ways to promote awareness about the organization and improvements on the setbacks encountered. The organization makes certain that the members of the public are aware that the services offered are of high quality and aims at ensuring that they create as much awareness as possible. The growth of his organization is above average and is far more impressive than most competitors. The organization has also acquired much fame and skills in how to add more customers and retain existing customers. These factors enable the organization to maintain its raising success and also improve on the negative aspects that it has. Read More