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Market Analysis Report: Name of Market
Industry Name
Your Name
Class Number
Date
(NOTE: The title page will be included with each section of
your paper to identify the author to the instructor.)
Market Analysis Report: Name of Market
Executive Summary
(Note: this appears first but is written last in workshop 6; 300
words)
Positioning and Differentiation
Definition of Positioning (100 words)
Brief (one paragraph) description of the market (100-150 words)
Analysis of Current Positioning in the Market
· Current annual sales volume in dollars and/or units sold in the
market
· Current competitors and their offerings, including points of
differentiation for each offering indicating how they are
positioned to each other in the market
· Current price points of competitors
Projections for the Market
· Projected overall market growth rate for the next five years
· Projected changes to overall pricing in the market for the next
five years
Recommended Position for JGJ Inc.
· Recommended position and points of differentiation for the
JGJ Inc. offering
· Complete buyer profile of the target customer
References
Product Development and Market Demand
Product Development
· Key differentiating characteristics of the offering
· Analysis of demand in the market
Market Segment Demand
· Quantitative data used to determine projected demand
· Methodology used to determine demand
References
Internal and External Marketing Environments
Analysis of Key External Factors in the Market
· Porter’s five forces model
· Other macroenvironmental external factors
Required Internal Resources and Competencies to Compete in
the Market
Required Licenses, Patents, and Rulings or Legal Requirements
to Compete in the Market
References
Pricing, Promotion, and Distribution Channels
Analysis of Current Pricing Models in the Market
Analysis of Current Promotional Models in the Market
Analysis of Current Distribution Models in the Market
Recommended Pricing Strategy for JGJ Inc.
Recommended Promotional Strategy for JGJ Inc.
Recommended Distribution Strategy for JGJ Inc.
References
2
USE THE YELLOW HIGHLIGHTED REVIEW TO UPDATE
THE ONES HIGHLIGHTED IN BLUE
Required Licenses, Patents, and Rulings or Legal Requirements
to Compete in the Market
For JGJ, Inc. owners to not be at risk when opening
their doors from lawsuits, it is recommended that JGJ, Inc.
complete the process for licensing as an LLC (“How to Start,”
2020). Once this is complete, JGJ, Inc. also needs to register the
company to pay taxes, obtain an employer identification
number, and register for unemployment and workers’
compensation (“Do I need,” 2020). JGJ, Inc. should also
consider applying for a resale certificate for purchasing the raw
materials for their products (“How to get,” 2020). Along with
licenses, JGJ, Inc. must look into patents.
JGJ, Inc. is highly encouraged to submit patents for
every product that is invented. Patents are designed to protect
the investment of research and development for each product
(Kenton, 2020). Without the patent, JGJ, Inc. puts itself at a
greater risk for threats of substitutes than the company is
already projected to be. JGJ, Inc.’s top rival Amazon has 2,504
patents (Coppola, 2020). Given that Amazon has so many
patents, JGJ, Inc. must perform additional research of their soon
to be rivals to avoid any copyright infringement lawsuits.
Copyright infringement laws are not the only lawsuits JGJ, Inc.
should be concerned with, JGJ, Inc. must also follow legal
requirements per various states and countries.
Currently South Korea is the only country that has legal
requirements when producing robots (Regulatory Institute,
2017). However, there are a few ISO standards that have been
created that cover the topics of safety and vocabulary for
various robot types (Regulatory Institute, 2017). JGJ, Inc. needs
to be aware of new legal requirements year after year, which is
one of the other reasons why a legal department is necessary.
JGJ, Inc. needs to be a frontrunner in terms of robotic safety to
avoid any major issues in the future as new laws and regulations
are created.
References
Coppola, D. (26 Nov. 2020). Number of U.S. patents registered
by Amazon 2019. Statista, 26. Retrieved from
www.statista.com/statistics/897773/amazon-patents-usa-
registered/.
Do I need a business license? (24 Dec. 2020).
StartingYourBusiness.com. Retrieved from
startingyourbusiness.com/do-i-need-a-business-license/.
How to get a resale certificate. (30 Oct. 2020).
StartingYourBusiness.com. Retrieved from
startingyourbusiness.com/how-to-get-a-resale-certificate/.
How to start a robotics company. (11 Aug. 2020). TRUiC.
Retrieved form howtostartanllc.com/business-ideas/robotics.
Kenton, W. (22 Apr. 2020). How patents work and notable
patents that changed how we live. Investopedia. Retrieved
from www.investopedia.com/terms/p/patent.asp.
Regulatory Institute. (17 Apr. 2017). Robots: No regulatory race
against the machine yet. How to Regulate? Retrieved from
www.howtoregulate.org/robots-regulators-active/.
BEFORE YOU WORK ON THIS ONES THAT IS
HIGHLIGHTED IN BLUE- PLEASE READ AND
UNDERSTAND THE PEER REVIWED THAT IS
HIGHLIGHTED IN YELLOW ABOVE. YOU WILL USE IT TO
ANSWER THIS ONE BELOW
Internal and External Marketing Environments
Introduction
This paper examines theinternal andexternal marketing
environments that JGJ Inc. will encounter if it decides to enter
the market.Therefore, the paper analyzes the market's
significant aspects through Porter's five forces and examines the
major external factors. Lastly, the paper examines the aspect
of Licenses as well as legal requirements.
Analysis of Key External Factors in the Market
· Porter’s five forces model
This refers to the provision of the account of the competitive
rivalry. It is essential to help the organization comprehend the
various competitive forces, enabling JGJ Inc to maximize its
profitability. The five forces this paper is considering include:
The intensity of rivalry:
There is robust competition in this industry. Because this
industry is considered futuristic, they will likely gain the right
margin because many individuals and other companies have
invested in the company. Additionally, the amount of money
that is invested in the also contribute and strengthen the rivalry.
This paper recommends that JGJ Inc. should focus on producing
quality goods and services with different new features. This
paper recognizes that the price point should be considered
essential (Miller, Vandome, & John, 2011).
Threats of new entrants
This is a force in this industry; however, this force in the
industry is medium. There is high capital invasiveness in the
industry; this calls for intensive innovations, which will help
achieve a competitive advantage in the market to be on top of
the already existing companies. It is essential to understand that
the higher the barriers to entry, the less the beginners or the
startup will likely venture into the industry, as they will be
discouraged by the barriers. This is precisely what happens in
this industry; there are many barriers to new entrants.
Moreover, according to analysis, for instance, distribution cost,
among others, also play a significant role as far as barriers to
new entry are concerned (Miller, Vandome, & John, 2011).
Threat of substitutes
The analysis indicates a very high risk of the alternatives for
the f JGJ Inc's. In this case, the business has to substitute a
robot to make human life more comfortable, and human
resources can most certainly replace it. Various machines are
already in place, and this offers a significant barrier towards
raising risks.
Bargaining power of the buyer
Generally, as far as the business is concerned, the customer's
bargaining power is high considering that the industry is niche.
This means that customers can define the sales' scope.
Customers have very high bargaining power in this industry.
Bargaining power of suppliers
The suppliers' bargaining power is not very significant in the
business, considering that most of the products are hardware.
However, other aspects may also play a part in regulating the
forces' part (Walder, 2017). The summary of Porter's five rules
is provided below:
· Other macroenvironmental external factors
They refer to the external factors that JGJ Inc. cannot control.
Even though the company is not in control of the factors, the
company needs to strategize itself so that these external factors
may favor its operations. These external factors include:
Political factor
This considers various changes in the industry's policy, trade
policy, for instance, the current steel tariffs. Moreover, the
various regulations incorporating safety are among the political
factors (Cordell & Thompson, 2018).
Economic factors
Various economic factors have to be put into consideration
when JGJ Inc. when deciding to enter this market. Such factors
may include the Market boom, the inflation period, the rate of
unemployment, recession, the interest rate, and the foreign
exchange rate, among others (Cordell & Thompson, 2018).
Social Factors
The various social factors that JGJ Inc. will face if it decides to
enter this market include the population's demographics, which
constitute age, level of income, preference, etc.
Technological Factors
This considers the various advances in technology that might
directly influence the Machinery, software, and computers used
to ease business operations (Cordell & Thompson, 2018).
Required Internal Resources and Competencies to Compete in
the Market
JGJ Inc. has vast capital, and this is advantageous because it
will enable to invest in a manner that will follow the standard
industry methods; this could also enable the company to set up
different business departments across the company, for instance,
· Management department
· Finance department
· Sales department
· Operations department
· Legal department
· Development department
The departments will be able to work effectively once they
process-specific resources such as:
· Infrastructure
· Technology
· Service
· Operations
· Sales
· Logistics
· Reputation
· Financial
· Wellness
· Workforce
· Consistency
· Reliability
Required Licenses, Patents, and Rulings or Legal Requirements
to Compete in the Market
Regulations refer to the deliberate attempt of influencing
people's behavior. It's clear from the company's analysis that
robots are not the target for regulating the regulatory
intervention I am concerned about. However, they may be
incorporated in the process of design, building, and various
work. In this case, the 'robotics regulation' shows that the
regulation is meant to influence people's behavior as far as
developments in the robotics field is concerned (Godbey, 2014).
People's behavior may be influenced by the law as well as other
intentional mechanisms. Generally, the law, market, social
norms, and architecture are the behavior influencing factors in
this case. Therefore, it is essential to delve into different
regulatory dilemmas which the company may probably face if it
decides to enter the market; these dilemmas ought to be
addressed as far as consideration of different types of regulatory
intervention is concerned and that which is demonstrated by
various issues which are as a result of the robotics regulation as
well as applications.
The first regulatory dilemma related to technology regulation is
the strategy of keeping up with advances in technology. The
advances in technology might result in gaps, resulting in
undesirable conflicts and demand for the changes. Therefore,
the actual dilemma, in this case, involves "technology-neutrality
versus legal certainty." This constitutes the negative impacts of
technology, which ought to be regulated.
The emerging technologies also lead to another technological
related-dilemma. Premature and obtrusive legislation may
hinder scientific advancement while preventing the possible
advantages, which might result in various economic
inefficiencies. On the same note, when there is no reliable and
secure legal environment, technological innovation is likely to
be hindered (Godbey, 2014).
References
Cordell, A., & Thompson, I. (2018). Macroenvironmental
analysis (Steeple). The Category Management Handbook, 69-71.
doi:10.4324/9781351239585-19
Godbey, W. (2014). Patents and licenses. An Introduction to
Biotechnology, 393-402. doi:10.1016/b978-1-907568-28-
2.00019-8
Miller, F. P., Vandome, A. F., & John, M. (2011). Porter five
forces analysis. Alphascript Publishing.
Walder, J. (2017). A critical evaluation of Michael Porter's Five
Forces framework. Createspace Independent Publishing
Platform.
PLEASE PEER REVIEW THIS
Pricing, Promotion, and Distribution Channels
Analysis of Current Pricing Models in the Market
Lyft
According to Table 1.1 below, Lyft charges a service
fee, a fee per minute, a fee per mile, and a minimum fare
(Helling, 2020). Although Lyft charges all these fees, customers
should tip their drivers as well. The average tip to a Lyft driver
is 20% (Helling, 2018). When referencing a trip of 20 miles at
40 miles per hour, the total time would be 18.5 minutes. Taking
all the fees and tip into account, the total cost of the trip via a
standard Lyft vehicle would be $.9 base fare + ($1.90*18.5
minutes) + ($.09 * 20 miles) + 20% tip = $45.42. Lyft's fare
rates are fairly constant. However, Lyft also utilizes the
dynamic pricing model (Didur, 2018).
Table 1.1 – Average Lyft fare
Initial Cost
Service Fee
Per Minute
Per Mile
Minimum Fare
Lyft
$0.90
$1.90
$0.09
$0.90
$3.50
Lyft Plus
$1.50
$1.90
$0.18
$1.50
$3.50
Lyft Lux
$3.50
$1.90
$0.30
$2.05
$10.00
During Prime Time, Lyft increases ride prices by 200% and
reduces ride prices by up to 50% during Happy Hour (Didur,
2018). This dynamic pricing ensures that Lyft has the right
number of drivers at the right time. Another company that
practices the dynamic pricing model is another top direct
competitor: Uber (Jensen, 2013).
Uber
Unlike Lyft, Uber does not have a broad average base
fare for its ridesharing services. According to Table 1.2 below,
Uber offers its services at different prices across the United
States ("How much,” 2016). Along with the base fare, fare per
minute, and fare per mile, Uber also charges a $1 fee for its
drivers' background check (Hetting et al., 2020). A scenario
used to compare Lyft and Uber's rates will use a trip in Austin,
Texas ("How much," 2016). The trip will be 20 miles at 40
miles per hour, and the total time will be 18.5 minutes. Taking
all the fees into account, the total cost of the trip via a standard
Uber vehicle would be $1 base fare + ($.18*18.5 minutes) +
($1.10*20 miles) + $1 background check + 20% tip = $32.796.
This trip would be less than the Lyft trip, but the same trip in
NYC would cost $65.28.
Table 1.2 – Average Uber fare per city
Along with Uber's dynamic pricing approach per city,
Uber also increases prices during significant events, Friday and
Saturday nights, and after-work rush hour (Netherlands, 2019).
Uber is usually less expensive than traditional taxis. However,
due to the surge pricing model, Uber can be more costly than its
competitor: Taxicab ("How much," 2016).
Taxicab
Like its competitor Uber, taxicab also uses a dynamic
pricing approach per city (Howmuchisit.org Staff, 2018).
However, the taxicabs pricing structure is a bit different from
Lyft and Uber. Some towns charge per minute, whereas some
cities charge per mile (Howmuchisit.org Staff, 2018). Taxicab's
rates are much higher than Lyft and Uber's at .5-$3 per minute
and $1-$3 per mile. Taxicab can also charge various fees such
as $15 to $40 to wait per hour, $5-15 for pick-up from specific
locations, a premium surcharge of 20-40% for various hours of
the day, and fuel surcharge of $2-$5 (Howmuchisit.org Staff,
2020). To compare, a 20-mile at $2 per mile with a $10 pickup
fee, $3 fuel surcharge, and a 15% tip, the trip's cost would be
$60.95.
Analysis of Current Promotional Models in the Market
Lyft
Lyft promotes its business primarily through Google
Display and large job boards and has roughly spent $914,000 in
six months (Nickel, n.d.). Lyft appeals to its audience by
creating ads that focus directly on specific geographic regions
with various income potentials (Nickel, n.d.). After clicking on
Lyft's links, viewers are routed to Lyft's homepage to apply
online to be a driver (Nickel, n.d.). Although Lyft is doing a
great job at advertising and gaining market share, Uber remains
one step above Lyft.
Uber
Uber promotes its business on various sites such as
Google Display, MediaMath, and Advertising.com (Nickel,
n.d.). Uber is also more aggressive than Lyft by spending
roughly $1.3 million in the past three months on advertising
(Nickel, n.d.). Uber is like Lyft by posting its ads to job boards;
however, Uber also publishes to other sites (Nickel, n.d.).
Uber's links take viewers to three different sites to test various
advertising phrases (Nickel, n.d).
Neither Uber nor Lyft spends much on advertising to
the public. However, taxicab advertises directly to the public
and gets paid to do so.
Taxicab
Taxicab not only drives customers to and from
destinations but also makes money advertising in the process.
Cabs help businesses display their products and services
directly to the public in real-time by displaying decals (“How
does,” 2020).
Analysis of Current Distribution Models in the Market
Lyft currently operates in 321 cities between the United States
and Canada (“Lyft Cities,” n.d.). Uber currently operates in
10,000 + cities between 70 countries (“Uber cities,” n.d.). Taxis
operate in most major cities in the United States. All three
competitors of JGJ, Inc. have vastly different distribution
models.
Recommended Pricing Strategy for JGJ, Inc.
The recommended pricing strategy for JGJ, Inc. is to
charge slightly lower base fare rates and fees than our rivals.
The average rate for JGJ, Inc. is below in Table 1.3. A 20-mile
trip at 18.5 minutes without a waiting fee would cost $0.75 base
fare + ($.15*20) + ($1.25*18.5) + 20% tip = $32.25.
Table 1.3 – JGJ, Inc. average rate
JGJ, Inc. is not priced drastically lower than its
competitors due to the partnership with Medicare. However,
JGJ, Inc. needs to be positioned just below its competitor's
pricing due to pursuing additional market share besides the
Medicare population.
Recommended Promotional Strategy for JGJ Inc.
AARP and the Medicare website will be JGJ, Inc.'s
home sites for advertising. This is where the elderly population
goes for important information. Along with this, JGJ, Inc., and
Medicare can work on including the partnership in Medicare's
newsletter and fliers that are sent out to Medicare's clients to
promote the new ride-share service specifically tailored to suit
their needs.
JGJ, Inc. will also use Indeed, Monster, and other job
boards to find drivers. JGJ, Inc. will offer drivers $500 sign-on
bonuses after being a driver for one year with their company.
JGJ, Inc. should also pursue a partnership with TikTok and
Facebook to advertise hiring events.
Recommended Distribution Strategy for JGJ Inc.
The recommended distribution strategy for JGJ, Inc. is
to operate in cities larger than 35,000 citizens in the Uni ted
States. If drivers are interested in working in a city with a
smaller population size, special job assignments can made.
References
Didur, I. (29 May 2018). Dynamic pricing algorithms on Uber
and Lyft. DataRoot Labs. datarootlabs.com/blog/uber-lift-gett-
surge-pricing-algorithms.
Helling, B. (12 Dec. 2018). Lyft tipping guide - should you tip
your Lyft driver? Gigworker.com. gigworker.com/lyft-tipping-
guide/#:~:text=Most%20Lyft%20rides%20cost%20less%20than
%20$10,%20so,of%20water,%20or%20provided%20snacks%20a
long%20the%20ride.
Helling, B. (3 Dec. 2020). Lyft estimate cost: How to get an
accurate Lyft estimate for your next ride. Ridester.com.
www.ridester.com/lyft-estimate-fare-calculator/.
Helling, Brett, et al. (3 Dec. 2020). How much does Uber cost?
– A comprehensive guide. Ridester.com.
www.ridester.com/uber-rates-cost/.
How does taxi advertising work? (25 Mar. 2020).
Taxiadvertising.com. taxiadvertising.com/blog/taxi-advertising-
process/.
How much does Uber cost? (16 Sep. 2016). TechBoomers.com.
techboomers.com/t/uber-
cost#:~:text=On%20average,%20an%20Uber%20fare%20costs%
20$24%20U.S.,How%20much%20does%20an%20UberX%20cos
t,%20on%20average?
Howmuchisit.org Staff. (15 Aug. 2020). How much does a taxi
cost? howmuchisit.org howmuchisit.org/how-much-does-a-taxi-
cost/.
Jensen, M. (2013). Setting profitable prices: A step-by-step
guide to pricing strategy--without hiring a consultant. John
Wiley & Sons,
Incorporated. https://ebookcentral.proquest.com/lib/indwes/deta
il.action?docID=1119804
Lyft Cities. (n.d.). Lyft Estimate. lyftrideestimate.com/cities.
Netherlands. (6 June 2019). How Uber's dynamic pricing works.
Uber Blog. www.uber.com/en-NL/blog/how-ubers-dynamic-
pricing-model-works/.
Nickel, B. (n.d). How Uber and Lyft run their paid traffic
campaigns. Adbeat. blog.adbeat.com/uber-lyft/.
Uber cities in and around the world. (n.d). Uber.
www.uber.com/global/en/cities/.
Market analysis report name of market

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Market analysis report name of market

  • 1. Market Analysis Report: Name of Market Industry Name Your Name Class Number Date (NOTE: The title page will be included with each section of your paper to identify the author to the instructor.) Market Analysis Report: Name of Market Executive Summary (Note: this appears first but is written last in workshop 6; 300 words) Positioning and Differentiation Definition of Positioning (100 words) Brief (one paragraph) description of the market (100-150 words) Analysis of Current Positioning in the Market · Current annual sales volume in dollars and/or units sold in the market · Current competitors and their offerings, including points of
  • 2. differentiation for each offering indicating how they are positioned to each other in the market · Current price points of competitors Projections for the Market · Projected overall market growth rate for the next five years · Projected changes to overall pricing in the market for the next five years Recommended Position for JGJ Inc. · Recommended position and points of differentiation for the JGJ Inc. offering · Complete buyer profile of the target customer References Product Development and Market Demand Product Development · Key differentiating characteristics of the offering · Analysis of demand in the market Market Segment Demand · Quantitative data used to determine projected demand · Methodology used to determine demand References Internal and External Marketing Environments Analysis of Key External Factors in the Market · Porter’s five forces model · Other macroenvironmental external factors Required Internal Resources and Competencies to Compete in the Market Required Licenses, Patents, and Rulings or Legal Requirements to Compete in the Market References
  • 3. Pricing, Promotion, and Distribution Channels Analysis of Current Pricing Models in the Market Analysis of Current Promotional Models in the Market Analysis of Current Distribution Models in the Market Recommended Pricing Strategy for JGJ Inc. Recommended Promotional Strategy for JGJ Inc. Recommended Distribution Strategy for JGJ Inc. References 2 USE THE YELLOW HIGHLIGHTED REVIEW TO UPDATE THE ONES HIGHLIGHTED IN BLUE Required Licenses, Patents, and Rulings or Legal Requirements to Compete in the Market For JGJ, Inc. owners to not be at risk when opening their doors from lawsuits, it is recommended that JGJ, Inc. complete the process for licensing as an LLC (“How to Start,” 2020). Once this is complete, JGJ, Inc. also needs to register the company to pay taxes, obtain an employer identification number, and register for unemployment and workers’ compensation (“Do I need,” 2020). JGJ, Inc. should also consider applying for a resale certificate for purchasing the raw materials for their products (“How to get,” 2020). Along with licenses, JGJ, Inc. must look into patents. JGJ, Inc. is highly encouraged to submit patents for every product that is invented. Patents are designed to protect the investment of research and development for each product
  • 4. (Kenton, 2020). Without the patent, JGJ, Inc. puts itself at a greater risk for threats of substitutes than the company is already projected to be. JGJ, Inc.’s top rival Amazon has 2,504 patents (Coppola, 2020). Given that Amazon has so many patents, JGJ, Inc. must perform additional research of their soon to be rivals to avoid any copyright infringement lawsuits. Copyright infringement laws are not the only lawsuits JGJ, Inc. should be concerned with, JGJ, Inc. must also follow legal requirements per various states and countries. Currently South Korea is the only country that has legal requirements when producing robots (Regulatory Institute, 2017). However, there are a few ISO standards that have been created that cover the topics of safety and vocabulary for various robot types (Regulatory Institute, 2017). JGJ, Inc. needs to be aware of new legal requirements year after year, which is one of the other reasons why a legal department is necessary. JGJ, Inc. needs to be a frontrunner in terms of robotic safety to avoid any major issues in the future as new laws and regulations are created. References Coppola, D. (26 Nov. 2020). Number of U.S. patents registered by Amazon 2019. Statista, 26. Retrieved from www.statista.com/statistics/897773/amazon-patents-usa- registered/. Do I need a business license? (24 Dec. 2020). StartingYourBusiness.com. Retrieved from startingyourbusiness.com/do-i-need-a-business-license/. How to get a resale certificate. (30 Oct. 2020). StartingYourBusiness.com. Retrieved from startingyourbusiness.com/how-to-get-a-resale-certificate/. How to start a robotics company. (11 Aug. 2020). TRUiC. Retrieved form howtostartanllc.com/business-ideas/robotics. Kenton, W. (22 Apr. 2020). How patents work and notable patents that changed how we live. Investopedia. Retrieved from www.investopedia.com/terms/p/patent.asp. Regulatory Institute. (17 Apr. 2017). Robots: No regulatory race
  • 5. against the machine yet. How to Regulate? Retrieved from www.howtoregulate.org/robots-regulators-active/. BEFORE YOU WORK ON THIS ONES THAT IS HIGHLIGHTED IN BLUE- PLEASE READ AND UNDERSTAND THE PEER REVIWED THAT IS HIGHLIGHTED IN YELLOW ABOVE. YOU WILL USE IT TO ANSWER THIS ONE BELOW Internal and External Marketing Environments Introduction This paper examines theinternal andexternal marketing environments that JGJ Inc. will encounter if it decides to enter the market.Therefore, the paper analyzes the market's significant aspects through Porter's five forces and examines the major external factors. Lastly, the paper examines the aspect of Licenses as well as legal requirements. Analysis of Key External Factors in the Market · Porter’s five forces model This refers to the provision of the account of the competitive rivalry. It is essential to help the organization comprehend the various competitive forces, enabling JGJ Inc to maximize its profitability. The five forces this paper is considering include: The intensity of rivalry: There is robust competition in this industry. Because this industry is considered futuristic, they will likely gain the right margin because many individuals and other companies have invested in the company. Additionally, the amount of money that is invested in the also contribute and strengthen the rivalry. This paper recommends that JGJ Inc. should focus on producing quality goods and services with different new features. This paper recognizes that the price point should be considered
  • 6. essential (Miller, Vandome, & John, 2011). Threats of new entrants This is a force in this industry; however, this force in the industry is medium. There is high capital invasiveness in the industry; this calls for intensive innovations, which will help achieve a competitive advantage in the market to be on top of the already existing companies. It is essential to understand that the higher the barriers to entry, the less the beginners or the startup will likely venture into the industry, as they will be discouraged by the barriers. This is precisely what happens in this industry; there are many barriers to new entrants. Moreover, according to analysis, for instance, distribution cost, among others, also play a significant role as far as barriers to new entry are concerned (Miller, Vandome, & John, 2011). Threat of substitutes The analysis indicates a very high risk of the alternatives for the f JGJ Inc's. In this case, the business has to substitute a robot to make human life more comfortable, and human resources can most certainly replace it. Various machines are already in place, and this offers a significant barrier towards raising risks. Bargaining power of the buyer Generally, as far as the business is concerned, the customer's bargaining power is high considering that the industry is niche. This means that customers can define the sales' scope. Customers have very high bargaining power in this industry. Bargaining power of suppliers The suppliers' bargaining power is not very significant in the business, considering that most of the products are hardware. However, other aspects may also play a part in regulating the forces' part (Walder, 2017). The summary of Porter's five rules is provided below: · Other macroenvironmental external factors They refer to the external factors that JGJ Inc. cannot control. Even though the company is not in control of the factors, the
  • 7. company needs to strategize itself so that these external factors may favor its operations. These external factors include: Political factor This considers various changes in the industry's policy, trade policy, for instance, the current steel tariffs. Moreover, the various regulations incorporating safety are among the political factors (Cordell & Thompson, 2018). Economic factors Various economic factors have to be put into consideration when JGJ Inc. when deciding to enter this market. Such factors may include the Market boom, the inflation period, the rate of unemployment, recession, the interest rate, and the foreign exchange rate, among others (Cordell & Thompson, 2018). Social Factors The various social factors that JGJ Inc. will face if it decides to enter this market include the population's demographics, which constitute age, level of income, preference, etc. Technological Factors This considers the various advances in technology that might directly influence the Machinery, software, and computers used to ease business operations (Cordell & Thompson, 2018). Required Internal Resources and Competencies to Compete in the Market JGJ Inc. has vast capital, and this is advantageous because it will enable to invest in a manner that will follow the standard industry methods; this could also enable the company to set up different business departments across the company, for instance, · Management department · Finance department · Sales department · Operations department · Legal department · Development department The departments will be able to work effectively once they
  • 8. process-specific resources such as: · Infrastructure · Technology · Service · Operations · Sales · Logistics · Reputation · Financial · Wellness · Workforce · Consistency · Reliability Required Licenses, Patents, and Rulings or Legal Requirements to Compete in the Market Regulations refer to the deliberate attempt of influencing people's behavior. It's clear from the company's analysis that robots are not the target for regulating the regulatory intervention I am concerned about. However, they may be incorporated in the process of design, building, and various work. In this case, the 'robotics regulation' shows that the regulation is meant to influence people's behavior as far as developments in the robotics field is concerned (Godbey, 2014). People's behavior may be influenced by the law as well as other intentional mechanisms. Generally, the law, market, social norms, and architecture are the behavior influencing factors in this case. Therefore, it is essential to delve into different regulatory dilemmas which the company may probably face if it decides to enter the market; these dilemmas ought to be addressed as far as consideration of different types of regulatory intervention is concerned and that which is demonstrated by various issues which are as a result of the robotics regulation as well as applications. The first regulatory dilemma related to technology regulation is the strategy of keeping up with advances in technology. The
  • 9. advances in technology might result in gaps, resulting in undesirable conflicts and demand for the changes. Therefore, the actual dilemma, in this case, involves "technology-neutrality versus legal certainty." This constitutes the negative impacts of technology, which ought to be regulated. The emerging technologies also lead to another technological related-dilemma. Premature and obtrusive legislation may hinder scientific advancement while preventing the possible advantages, which might result in various economic inefficiencies. On the same note, when there is no reliable and secure legal environment, technological innovation is likely to be hindered (Godbey, 2014). References Cordell, A., & Thompson, I. (2018). Macroenvironmental analysis (Steeple). The Category Management Handbook, 69-71. doi:10.4324/9781351239585-19 Godbey, W. (2014). Patents and licenses. An Introduction to Biotechnology, 393-402. doi:10.1016/b978-1-907568-28- 2.00019-8 Miller, F. P., Vandome, A. F., & John, M. (2011). Porter five forces analysis. Alphascript Publishing. Walder, J. (2017). A critical evaluation of Michael Porter's Five Forces framework. Createspace Independent Publishing Platform.
  • 10. PLEASE PEER REVIEW THIS Pricing, Promotion, and Distribution Channels Analysis of Current Pricing Models in the Market Lyft According to Table 1.1 below, Lyft charges a service fee, a fee per minute, a fee per mile, and a minimum fare (Helling, 2020). Although Lyft charges all these fees, customers should tip their drivers as well. The average tip to a Lyft driver is 20% (Helling, 2018). When referencing a trip of 20 miles at 40 miles per hour, the total time would be 18.5 minutes. Taking all the fees and tip into account, the total cost of the trip via a standard Lyft vehicle would be $.9 base fare + ($1.90*18.5 minutes) + ($.09 * 20 miles) + 20% tip = $45.42. Lyft's fare rates are fairly constant. However, Lyft also utilizes the dynamic pricing model (Didur, 2018). Table 1.1 – Average Lyft fare Initial Cost Service Fee Per Minute
  • 11. Per Mile Minimum Fare Lyft $0.90 $1.90 $0.09 $0.90 $3.50 Lyft Plus $1.50 $1.90 $0.18 $1.50 $3.50 Lyft Lux $3.50 $1.90 $0.30 $2.05 $10.00 During Prime Time, Lyft increases ride prices by 200% and reduces ride prices by up to 50% during Happy Hour (Didur, 2018). This dynamic pricing ensures that Lyft has the right number of drivers at the right time. Another company that practices the dynamic pricing model is another top direct competitor: Uber (Jensen, 2013). Uber Unlike Lyft, Uber does not have a broad average base fare for its ridesharing services. According to Table 1.2 below, Uber offers its services at different prices across the United States ("How much,” 2016). Along with the base fare, fare per minute, and fare per mile, Uber also charges a $1 fee for its drivers' background check (Hetting et al., 2020). A scenario used to compare Lyft and Uber's rates will use a trip in Austin, Texas ("How much," 2016). The trip will be 20 miles at 40
  • 12. miles per hour, and the total time will be 18.5 minutes. Taking all the fees into account, the total cost of the trip via a standard Uber vehicle would be $1 base fare + ($.18*18.5 minutes) + ($1.10*20 miles) + $1 background check + 20% tip = $32.796. This trip would be less than the Lyft trip, but the same trip in NYC would cost $65.28. Table 1.2 – Average Uber fare per city Along with Uber's dynamic pricing approach per city, Uber also increases prices during significant events, Friday and Saturday nights, and after-work rush hour (Netherlands, 2019). Uber is usually less expensive than traditional taxis. However, due to the surge pricing model, Uber can be more costly than its competitor: Taxicab ("How much," 2016). Taxicab Like its competitor Uber, taxicab also uses a dynamic pricing approach per city (Howmuchisit.org Staff, 2018). However, the taxicabs pricing structure is a bit different from Lyft and Uber. Some towns charge per minute, whereas some cities charge per mile (Howmuchisit.org Staff, 2018). Taxicab's rates are much higher than Lyft and Uber's at .5-$3 per minute and $1-$3 per mile. Taxicab can also charge various fees such as $15 to $40 to wait per hour, $5-15 for pick-up from specific locations, a premium surcharge of 20-40% for various hours of the day, and fuel surcharge of $2-$5 (Howmuchisit.org Staff, 2020). To compare, a 20-mile at $2 per mile with a $10 pickup fee, $3 fuel surcharge, and a 15% tip, the trip's cost would be $60.95. Analysis of Current Promotional Models in the Market Lyft Lyft promotes its business primarily through Google Display and large job boards and has roughly spent $914,000 in six months (Nickel, n.d.). Lyft appeals to its audience by creating ads that focus directly on specific geographic regions with various income potentials (Nickel, n.d.). After clicking on Lyft's links, viewers are routed to Lyft's homepage to apply
  • 13. online to be a driver (Nickel, n.d.). Although Lyft is doing a great job at advertising and gaining market share, Uber remains one step above Lyft. Uber Uber promotes its business on various sites such as Google Display, MediaMath, and Advertising.com (Nickel, n.d.). Uber is also more aggressive than Lyft by spending roughly $1.3 million in the past three months on advertising (Nickel, n.d.). Uber is like Lyft by posting its ads to job boards; however, Uber also publishes to other sites (Nickel, n.d.). Uber's links take viewers to three different sites to test various advertising phrases (Nickel, n.d). Neither Uber nor Lyft spends much on advertising to the public. However, taxicab advertises directly to the public and gets paid to do so. Taxicab Taxicab not only drives customers to and from destinations but also makes money advertising in the process. Cabs help businesses display their products and services directly to the public in real-time by displaying decals (“How does,” 2020). Analysis of Current Distribution Models in the Market Lyft currently operates in 321 cities between the United States and Canada (“Lyft Cities,” n.d.). Uber currently operates in 10,000 + cities between 70 countries (“Uber cities,” n.d.). Taxis operate in most major cities in the United States. All three competitors of JGJ, Inc. have vastly different distribution models. Recommended Pricing Strategy for JGJ, Inc. The recommended pricing strategy for JGJ, Inc. is to charge slightly lower base fare rates and fees than our rivals. The average rate for JGJ, Inc. is below in Table 1.3. A 20-mile trip at 18.5 minutes without a waiting fee would cost $0.75 base fare + ($.15*20) + ($1.25*18.5) + 20% tip = $32.25. Table 1.3 – JGJ, Inc. average rate
  • 14. JGJ, Inc. is not priced drastically lower than its competitors due to the partnership with Medicare. However, JGJ, Inc. needs to be positioned just below its competitor's pricing due to pursuing additional market share besides the Medicare population. Recommended Promotional Strategy for JGJ Inc. AARP and the Medicare website will be JGJ, Inc.'s home sites for advertising. This is where the elderly population goes for important information. Along with this, JGJ, Inc., and Medicare can work on including the partnership in Medicare's newsletter and fliers that are sent out to Medicare's clients to promote the new ride-share service specifically tailored to suit their needs. JGJ, Inc. will also use Indeed, Monster, and other job boards to find drivers. JGJ, Inc. will offer drivers $500 sign-on bonuses after being a driver for one year with their company. JGJ, Inc. should also pursue a partnership with TikTok and Facebook to advertise hiring events. Recommended Distribution Strategy for JGJ Inc. The recommended distribution strategy for JGJ, Inc. is to operate in cities larger than 35,000 citizens in the Uni ted States. If drivers are interested in working in a city with a smaller population size, special job assignments can made. References Didur, I. (29 May 2018). Dynamic pricing algorithms on Uber and Lyft. DataRoot Labs. datarootlabs.com/blog/uber-lift-gett- surge-pricing-algorithms. Helling, B. (12 Dec. 2018). Lyft tipping guide - should you tip your Lyft driver? Gigworker.com. gigworker.com/lyft-tipping-
  • 15. guide/#:~:text=Most%20Lyft%20rides%20cost%20less%20than %20$10,%20so,of%20water,%20or%20provided%20snacks%20a long%20the%20ride. Helling, B. (3 Dec. 2020). Lyft estimate cost: How to get an accurate Lyft estimate for your next ride. Ridester.com. www.ridester.com/lyft-estimate-fare-calculator/. Helling, Brett, et al. (3 Dec. 2020). How much does Uber cost? – A comprehensive guide. Ridester.com. www.ridester.com/uber-rates-cost/. How does taxi advertising work? (25 Mar. 2020). Taxiadvertising.com. taxiadvertising.com/blog/taxi-advertising- process/. How much does Uber cost? (16 Sep. 2016). TechBoomers.com. techboomers.com/t/uber- cost#:~:text=On%20average,%20an%20Uber%20fare%20costs% 20$24%20U.S.,How%20much%20does%20an%20UberX%20cos t,%20on%20average? Howmuchisit.org Staff. (15 Aug. 2020). How much does a taxi cost? howmuchisit.org howmuchisit.org/how-much-does-a-taxi- cost/. Jensen, M. (2013). Setting profitable prices: A step-by-step guide to pricing strategy--without hiring a consultant. John Wiley & Sons, Incorporated. https://ebookcentral.proquest.com/lib/indwes/deta il.action?docID=1119804 Lyft Cities. (n.d.). Lyft Estimate. lyftrideestimate.com/cities. Netherlands. (6 June 2019). How Uber's dynamic pricing works. Uber Blog. www.uber.com/en-NL/blog/how-ubers-dynamic- pricing-model-works/. Nickel, B. (n.d). How Uber and Lyft run their paid traffic campaigns. Adbeat. blog.adbeat.com/uber-lyft/. Uber cities in and around the world. (n.d). Uber. www.uber.com/global/en/cities/.