(1) The company plans to operate as a wholesaler selling hockey blades (X) and sticks (Y) across three regions by filling a gap in the distribution channels. (2) The strategy involves high initial investments in marketing, building large supplier and buyer networks, and purchasing high volumes to achieve scale and offer competitive low prices. (3) If not profitable in all regions, the company will focus on the most profitable region and divest from low performing ones. The goal is to become the leading wholesaler across the three regions.

1. *$91,000,000/$45,000,000 (averages at the end)
Team Name: The 5Forces / Team Number: 17
Business Strategy:
Product-Market Focus: Our firm will be selling both X and Y products as a wholesaler; acting
as an X intermediary to Y-producing firms but primarily selling X and Y to end consumers.
Value Proposition: Our presence in all areas and strategically located warehouses creates a
convenient marketplace for suppliers and buyers to interact.
Core Business Activities
Procurement Strategy: In sourcing both our hockey blades and sticks, we will be
engaging in an aggressive strategy of building sales offices across all areas. This allows
us to build an attractive and reliable distribution network with potential suppliers of X
and Y and perspective buyers of our product X and Y.
Operations Strategy:Our firm will engage in a geographic location and scale based-
strategy by building sales offices across all areas and buying and selling product X and Y
in bulk. By doing this, we will be adding value to our wholesale business and our sources
for inputs; being able to offer decreased shipping costs, thus a more attractive lower unit
cost for both parties.
Marketing Strategy: Initial investment will be high then decrease over time.
Expenditure in Central will be higher than West and Eastern because market is larger and
consumers more receptive. Once established, expenditure will decline in order to
minimize cost and focus marketing on maintaining relationships.
Goals: To be the leading wholesaler across all three areas of the hockey blade and stick market.
The Industry: Key external forces: Suppliers may exercise moderate to strong bargaining
power due to the number of alternatives; Wholesalers in comparison to X and Y producers are
few (low competition); Buyer power is initially strong.

2. *$91,000,000/$45,000,000 (averages at the end)
 Noticed a gap in distribution channels. Our wholesale business is looking to fill that gap
by becoming a wholesaler that operates as a market place for suppliers and buyers across
all areas.
 (1) High initial investment in marketing to establish our brand and market our
effectiveness at selling to customers in all areas, (2) create and maintain large networks
with suppliers and buyers, and (3) purchasing high volume and establishing a scale-effect
in order to offer low competitive prices – pass along our cost savings to end consumers.
 In the event the game does not work to our advantage, our company will focus on the
singular most profitable area and divest in low performing areas.
Competitive Advantage:
Reducing supplier bargaining power by assuming the role of establishing relationships with end
consumers. We offer a channel to access markets. Reducing buyer power by establishing
ourselves as the de-facto source of quality and low cost products. This is done through low
process costs such as shipping, scale efficiencies, and our relationship with suppliers.
Organizationand Resources:
Values: Respect for clients and suppliers for the purpose of maintaining harmonious business
relationships, a commitment on low cost offerings of X and Y, and a focus to operate in
convenient proximity of our suppliers and buyers. Resources required: our network of 5 sales
offices in each area.
Management abilities are diverse (Human resources): 1 CEO, 1 CFO, 2 VP of Operations in
charge of regional sales offices and supply chain management, and 1 VP of Marketing in charge
of developing relationships with suppliers and buyers all while promoting our brand of low cost
and high quality product.
Capital Requirements
Given that we are asking for an initial investment of $45 million and given our projected
outcomes in relation to sales and purchasing of product of X and Y we will be expecting a return
of investment of 200%*