OGL 355 Leading Organizational Innova-

tion and Change:

Environmental Analysis
Objectives:
1. Perform an industry analysis on your Case Study Organization using Porter’s Five Forces In-
dustry Analysis.
2. Identify target market for Case Study Organization and strategies to maintain the audience.

Complete the following and turn in as a team assignment. There is no need to create any other
document, just complete this one, save as, and post for your team. Everyone earns the same
grade unless consequences of non-participation are enacted (see Worksheet 1b, #2). Make sure to
support your ideas, cite from the textbook, other course materials, and your research per APA
guidelines and as necessary. Minimums are set to ensure support for your discussion, while most
responses will need some type of support to add strength and validity. It is important to cite defi-
nitions, and to earn Excellent the ideas need to be supported with source too. These responses
need to be based on some fact, not just the team’s opinion.

1. What is a Porter's Five Forces Industry Analysis?

The five forces that shape industry competition include, industry rivalry, Threat of
new entrants, Threat of substitute products, bargaining power of buyers and bar-
gaining of suppliers. Companies can use Porter's Five Forces as a framework to
guide business strategies and increase the company's competitive advantage. “Un-
derstanding the competitive forces, and their underlying causes, reveals the roots
of an industry's current profitability while providing a framework for anticipating
and influencing competition (and profitability) over time”(Martin 2023, Para.4, as
cited in Porter, 2008). Companies who have an awareness of their competition can
make strategic decisions to influence the success of the business. “A healthy in-
dustry structure should be as much a competitive concern to strategists as their
company’s own position”(Martin 2023, Para.4, as cited in Porter, 2008).

1. (Part B) How would the team implement a Porter's Five Forces Industry Analysis?
Our team is getting ready to go through each of the Five Forces of Industry Analy-
sis for the company “ASPCA” (American Society for the Prevention of Cruelty to
Animals). The team consists of 6 members and will meet for a strategic planning

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 meeting. We will identify the threat level as high or low for each of the forces.
While choosing the threat level, the team will identify reasons why the level is
high or low. After analyzing the Five Models we will determine the target market
and come up with 2 strategies to maintain the organization's target market.

2. Pick the threat level of new entrants within the team’s organization’s industry.
a. Threat Level of New Entrants is:
● High
b. List 3 reasons why the team has chosen Low or High, using sourced material for
at least 1 of them to earn excellent, with other support as needed per APA Guide-
lines.
i. The main reason why the threat level of new entrants are high is because
the level of entrance barriers are low (Threat of new entrants, 2022). Low
amount of entrance barriers means it is easier for companies to start up
due to the low startup cost. In addition, this type of industry can have lim-
ited resources and still be successful since there is not much overhead be-
sides licenses, labor, etc.
ii. Another reason why the threat level of new entrants is high is due to
county shelters, city pounds, and animal rescues. There are many rescue
centers and local shelters that people can adopt a pet at. I would say these
types of businesses heavily rely on their location.
iii. Lastly, the third reason why the threat level of entrants is high is due to in-
dividual and private breeders. People can become private breeders at little
cost which can pose a threat to the bigger companies who offer animals to
adopt. Social media has become a platform where third parties can sell an-
imals without any licenses or documentation.

3. Pick the bargaining power level of buyers within the team’s organization's indus-
try.
a. Bargaining Power Level of Buyers is: (Buyers being the Adoptees) Compare to
other organizations that also sell/foster pets.
● High
b. List 3 reasons why the team has chosen Low or High, using sourced material for
at least 1 of them to earn excellent, with other support as needed per APA Guide-
lines.
i. The ratio of sellers compared to buyers is extremely high. There are nu-
merous other organizations that buyers may purchase/adopt a pet from,
should they not like the selection or the price at ASPCA. There are over
660 such listed organizations in Alabama alone (Petfinder, 2020).

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 ii. Due to the fact that adopting a pet is a one-time transaction, and the vast
majority of buyers are unlikely to make more than 10 of these types of
“purchases” throughout their life, the switching costs (Coulter, 2012) asso-
ciated with moving from one supplier to another is essentially zero. If
someone previously adopted a pet through ASPCA, but for whatever rea-
son wishes to adopt their next pet from a different organization, they can
do so without any penalty or negative side effects whatsoever.
iii. Unlike “shelf space” at a retail store, the ASPCA incurs a continuous and
comparatively large expense for the care of pets that have not yet been
adopted. These expenses will continue until either the animal is euthanized
or eventually adopted. As such, they may offer discounted adoption fees
(or waive them entirely) in exchange for having less financial liability
(ASPCA, 2014) in daily operations.

4. Indicate the bargaining power level of suppliers within the team’s organization's in-
dustry.
a. Bargaining Power Level of Suppliers is:
● High
b. List 3 reasons why the team has chosen Low or High, using sourced material for
at least 1 of them to earn excellent, with other support as needed per APA Guide-
lines.
i. The ASPCA is one of over 1.5 million non-profit organizations (NPO) in
The United States (Statista Research Department, 2022) that rely heavily
on donations for operating costs, as well as any national lobbying the or-
ganizations does on behalf of the animals they defend.
ii. There are over 3,500 animal shelters in the United States (Covington,
2023), each requiring food, blankets, and other supplies to operate. These
supplies come from donations of items from pet stores and other organiza-
tions. With so many rescues and the rise of inflation, donations could be a
risk.
iii. With so many shelters, they must compete against each other to receive
the adoptable animals that are most desirable. Shelters that are no-kill
shelters could have an advantage in receiving new animals over a shelter
that is listed as a kill shelter.

5. Indicate the threat level of substitute products within the team’s organization's in-
dustry based on the identified buyers in #3.
a. Threat Level of Substitute Products is:
● High

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 b. List 3 reasons why the team has chosen Low or High, using sourced material for
at least 1 of them to earn excellent, with other support as needed per APA Guide-
lines.
i. The level would be high due to the numerous non-profit organizations that
offer the adoption of pets for a cost.
ii. Depending on the locality, opportunities of pet ownership could be ar-
ranged to acquire a pet through donations to an organization.
iii. The ASPCA competes with the local SPCA and other rescue organiza-
tions, to find new homes for the animals. Many times people will prefer to
leverage their local area instead of locating a specific ASPCA business.
(Astronaut, C. (2022, February 3).

6. Indicate the threat level of industry rivalry within the team’s organization's indus-
try.
a. Threat Level of Industry Rivalry is:
● High
b. List 3 reasons why the team has chosen Low or High, using sourced material for
at least 1 of them to earn excellent, with other support as needed per APA Guide-
lines.
i. The level would be high because there are other organizations that offer
similar protections for animals just like ASPCA.
ii. With the amount of nonprofit animal welfare organizations, revenue is
split throughout all the existing organizations. The amount of funding that
these organizations receive is approximately eleven billion dollars (Cause
IQ, n.d.) And with this 12 billion dollars are spread throughout 3,500 ani-
mal shelters in the United States (Covington, 2023).
iii. With such a rivalry in the industry, rescues often offer discounted or free
rates to increase the frequency of adoptions at their organizations. This not
only increases revenue for the ASPCA, but also undercuts the revenue of
their direct rivals.

7. Who is the target market for the team’s selected Case Study Organization? Describe
the target market in 3-5 sentences providing at least one sourced material to earn
excellent.
The target market for adopting animals from the ASPCA are the two largest pet
owning groups which are Millennials and Baby Boomers. The Millennials age
range is 25-39 with approximately 72.1 million Millennials and account for 27%
of all pet owners. The Baby Boomers, whose ages range is 55- 74 with approxi-
mately 71.6 million Baby Boomers. While their population is decreasing, pet
ownership is increasing. “Between 2008 and 2018 the percent of Boomers owning
a pet grew from 50% to 54%” (Cision, 2019).

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8. Identify at least 2 strategies to maintain the organization’s target market. Discuss in
at least 5 sentences and provide cited source material for both strategies to earn ex-
cellent.
a. Our first strategy is to continue marketing and advertising efforts directed to our
target market. Advertising campaigns will include social media, the ASPCA web-
site, and email marketing. “Communicating with your followers through email is
still one of the most effective ways to reach them. That is why developing an
email list of supporters and adopters is essential to your organization’s success”
(ASPCApro, 2021, para. 4). Our first step in this strategy would therefore be to
conduct a review of our current email marketing process and make the necessary
changes to reach a wider audience and ensure a higher percentage of emails sent
out are viewed by our followers. Our next step would be to reorganize the AS-
PCA website to be more informative, easy to navigate, and user friendly to our
Baby Boomer audience. The last step would be a continuous effort to keep our so-
cial media accounts updated and communicate regularly with our subscribers.
b. Our second strategy is to promote the animals for adoption at local community
events. Using tools such as Petfinder Event Calendar, individual shelter websites
and local radio campaigns can help spread awareness of upcoming events to the
target market. For example, the SPCA of Annapolis has an event listed called
Hearts and Hounds Mall Craw that not only offers a place for existing pet owners
to come together, but the organization makes adoptable pets available to the target
market during the event (ASPCA, 2023). This helps the adoption process by hav-
ing the adoptable animals interact with the target market.

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 References

Animal organizations. (n.d.). Cause IQ. https://www.causeiq.com/directory/animal-organiza-

tions-list/

ASPCA. (2023). Hearts & Hounds Mall Crawl. https://aacspca.org/hearts-hounds-mall-crawl/

Astronaut, C. (2022, February 3). Aspca vs. SPCA: What's the difference? Houston SPCA. Re-
trieved January 26, 2023, from https://houstonspca.org/aspca-vs-spca-whats-the-differ-
ence/#:~:text=Did%20you%20know%3F%20Animal%20shelters,rely%20heavily%20on
%20local%20donations.

Cision. (2019, December 3). Baby Boomers and Millennials are Redefining Modern Pet

Ownership Trends, reports Packaged Facts.

https://www.prnewswire.com/news-releases/baby-boomers-and-millennials-are-re-

definig-modern-pet-ownership-trends-reports-packaged-facts-300963558.html

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Coulter, M. (2012). Strategic Management in Action (6th ed.). Pearson.

Covington, Taylor (2023). The Zebra. https://www.thezebra.com/resources/research/pet-adop-

tion-statistics/

Martin, M. (2023). Analyzing the competition with Porter's five forces. Business News Daily.
Retrieved January 29, 2023, from https://www.businessnewsdaily.com/5446-porters-five-
forces.html

Marketing Checklist for Animal Shelters and Rescues. (2021, May 12). ASPCApro. https://

www.aspcapro.org/resource/marketing-checklist-animal-shelters-and-rescues

Search for Animal Shelters & Rescue Groups. (2020, April 9). Petfinder. https://www.petfinder.-
com/animal-shelters-and-rescues/search/?location=AL

Special Holiday Event: Bring Home a New Pet and Enjoy Discounted Adoption Fees at the AS-
PCA! (2014, December 19). ASPCA. https://www.aspca.org/news/special-holiday-event-
bring-home-new-pet-and-enjoy-discounted-adoption-fees-aspca

Statista Research Department. (2022). Nonprofit organizations in the U.S. - Statistics & Facts.
https://www.statista.com/topics/1390/nonprofit-organizations-in-the-us/
#topicHeader__wrapper

Threat of new entrants. Corporate Finance Institute. (2022, November 29). Retrieved January 27,
2023, from https://corporatefinanceinstitute.com/resources/management/threat-of-new-
entrants/

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