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QUESTION
Assess the level of industry concentration. Identify the industry competitive structure (i.e., monopolistic competition, oligopoly, etc.). Assess industry profitability. (I added the tables for this in the excel sheet so please finish those two charts)
Identify the positions of the incumbent firms in the industry by drawing a strategic group map.
Identify the strategic groups in your industry.
Based on the financial ratios and on your previous analyses, identify the companies in your industry that have competitive advantage over their rivals. Explain how they have gained competitive advantage.
ANSWER
The kind of values that a company creates for its customers is called a unique value proposition. It is concerned with the division of the markets, the internal operations of the market and creating a positive attitude for the customers in order to bring the demand and supply of the company together by attracting potential and prospect customers. The value proposition consists of three major fundamental questions; what customers? What needs? And what relative prices? (Harvard Business School).
Most companies define their pricing policies through the use of the three common strategies, i.e. the cost-plus pricing which involves determination of the selling price by evaluation of all variable costs incurred by the company and addition of the markup percentage, the competitor-based pricing is determined by using the competitors’ price as a benchmark of setting your price, the value-based pricing which is determined by the worth of the services or goods as seen by the customers. These strategies are useful in the recurring revenue businesses.
The table below describes the value proposition of K-12 schools in Oahu; it illustrates the different customers, their needs and the pricing policies of each school.
| School | What Customers? | Which needs? | What relative price? | Tuition | Location |
| Punahou | Punahou has got aspirations for each and every child’s journey and a high expectation of each graduate in life. | Modern convenient classrooms, by 9th grade students given charge of their schedules, creation of student connections. | Parity | $26,000 | Makiki |
| Mid-pacific Institute | Innovators, artists and individuals. | Fun and engaging classrooms, fully embraces technology, utilization of the state of the art equipment. | Parity | $25,562 | Manoa |
| Iolani | Well rounded individuals and liberal educationists, | Personal growth and concern with others, church heritage and a spiritual foundation, development in creativity and inquisitiveness. | Discount | $24,375 | Mccully-Moiliili |
| St. Andrew’s schools | Single gender educationists and engaged students | Provision of social-emotional skills, spiritual values, embracing technology and meaningful relationships | Premiums | $18,995 | Downtown |
| Hawaii Baptist academy | Christian students | Good performances in the scholastic aptitude tests and American college tests, individual strength of a child | Parity | $16,900 | Punchbowl |
| St. Louis school | Male scholars, integrated students committed to their faith | Instruction Focused on Rigor, Relevance and Relationship and great extracurricular activities. | Parity | $15,400 | Manoa |
| Kamehameha Schools Kapālama | Native Hawaiian students | Honoring the Hawaiian traditions, create educational opportunities and well being of the Hawaiian people and ancestry | Discount | $5,199 | Liliha – Kapalama |
Citations
“Unique Value Proposition”: institute for strategy & competitiveness, Harvard Business School, Retrieved from https://www.isc.hbs.edu/strategy/creating-a-successful-strategy/Pages/unique-value-proposition.aspx
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