Ira - Five Forces Case

Ira- Five Forces

1. The market size for rhinos is estimated at 17,500 white and 4,200 black through 2010. Average selling price: $30,300, sales totaled: $7,033,400 revenue. Demand of the Rhinos has risen due to hunting and breeding.

2. The rivals are poachers and private seller auctions. The competition are private game owners, ranchers, breeders, and private game owners.

3. Buyers of the rhinos include dealers of wild game or private owners who buy from SANParks. They’re sold for tourist viewing or hunting. Rhinos are be sold to zoos or buyers who deal in wild game.

4. The two products being sold are white rhinos and black rhinos. Black rhinos are more rare and aggressive, so white rhinos are more commonly sold. The black rhinos had gone extinct, and SANParks had only sold two. Full ownership over the offspring splits the rights between parties. Black rhinos are more difficult to introduce and had a higher interspecies mortality rate from fighting. Fighting makes black rhinos are more risky investment than white rhinos. White rhinos breed better than black rhinos. White rhinos are more purchased for hunting, black for offspring.

5. The product innovation to the buyers is weight of the rhino, where its from, age, and color.

6. Yes, the companies are vertically integrated each preserve has their own species of rhinos each having different offspring and value. SANPark breeds its own rhinos and sells their own to wild game or private sectors, to help support the preserve parks. It owns and operates its own wildlife of 7,222 sq. ft. of preserve, sectioned off.

7. Due to expansion and large wildlife and animals, there are many cost advantages. Food is a big cost to help feed the animals and make sure they get fed. Supervision for all the rhinos costs money for employees, training and utilizing resources, translocation, breeding programs, and security for the wild.

Rivals- step 1

1. Yes, there are many selling decsions to selling rhinos to private sectors, which include population growth, sex and age structure, spatial use, natural dispersal, resource distribution, and population dynamics.

A. Improve economies scale- cost advantages

B. Sales growth in stagnant industry- If the rhino industry is not growing, they an grow the market share (Firm sales / total market share)

C. Reputation- Because SANParks has such a good reputation of breeding the best rhinos, other competing business can improve there business performance by hiring better training professionals and better resources.

D. Increased bargaining power- Having bargaining power with the supplier can help the rhino