Client/Server Applications

SURVEY OF THE STRUCTURE OF THE CLIENT/SERVER APPLICATIONS INDUSTRY INTRODUCTION: The following survey is part of a York University MBA project to study the growth and strategic issues with respect to a particular client/server applications consulting company. As such we require an understanding of the client/server applications industry in Canada and the United States. We therefore would appreciate the input of your company to allow us a better understanding of the C/S industry. All responses will remain anonymous. Also, in appreciation we can send you a summary of the results. Thank you in advance for your assistance. SURVEY: PART 1: THREAT OF NEW ENTRANTS: Yes No 1 Do large firms have a cost or performance advantage in your segment of the industry? ___ ___ 2 Are there any proprietary product differences in your industry? ___ ___ 3 Are there any established brand identities in your industry? ___ ___ 4 Do your customers incur any significant costs in switching suppliers? ___ ___ 5 Is a lot of capital needed to enter your industry? ___ ___ 6 Does a newcomer to your industry face difficulty in accessing distribution channels? ___ ___ 7 Does experience help you to continuously lower costs? ___ ___ 8 Does the newcomer have any problems in obtaining the necessary skilled people, materials or suppliers? ___ ___ 9 Does your product or service have any proprietary features which give you lower costs? ___ ___ 10 Are there any licenses, insurance or qualifications which are difficult to obtain? ___ ___ 11 Can the newcomer expect strong retaliation on entering the market? ___ ___ What are the key factors for threats of new entrants? PART II: THREAT OF SUBSTITUTES (Some other product or service which performs the same jobs as yours) Yes No 1 Do substitutes have performance limitations which do not completely offset their lower price?. ___ ___ 2 Is the performance advantage of the substitutes justified by their higher price? ___ ___ 3 Will the customer will incur costs in switching to a substitute? ___ ___ 4 Do you agree that your customer does not have a real substitute? ___ ___ 5 Do you agree that your customer is not likely to substitute? ___ ___ What are the key factors for threats of new entrants? PART III: DETERMINANTS OF RIVALRY AMONG EXISTING COMPETITORS Yes No 1 Is the industry growing rapidly? ___ ___ 2 Is the industry non-cyclical with intermittent over-capacity? ___ ___ 3 Are the fixed costs of the business a relatively low portion of total costs? ___ ___ 4 Are there significant product differences and brand identities between the major competitors? ___ ___ 5 Are the companies diversified rather than specialised? ___ ___ 6 Do you agree that it is easy to get out of this business because there are no specialised skills and facilities or long-term contract commitments, etc.? ___ ___ 7 Would your customers incur significant costs in switching to a competitor? ___ ___ 8 Is your product complex which requires a detailed understanding on the part of your customer? ___ ___ What are the key factors of rivalry among competitors? PART IV: BARGAINING POWER OF BUYERS Yes No 1 Is there a large number of buyers relative to the number of firms in the business? ___ ___ 2 Do you have a large number of customers each with relatively small purchases? ___ ___ 3 Does the customer face any significant costs in switching suppliers? ___ ___ 4 Does the buyer have limited access to information necessary for a buying decision? ___ ___ 5 Is there anything which prevents your customer from taking your function in-house? ___ ___ 6 Do you agree that your customers are not highly sensitive to price? ___ ___ 7 Is your product unique to some degree or does it have accepted branding? ___ ___ 8 Are your customers' businesses profitable? ___ ___ 9 Do you provide incentives to the decision-makers? ___ ___ Who or what type of businesses are your customers? What are the key factors for bargaining power of buyers? PART V: BARGAINING POWER OF SUPPLIERS Yes No 1 Are your business inputs (materials, labour, supplies, services, etc.) standard rather than unique or differentiated? ___ ___ 2 Can you switch between suppliers quickly and cheaply? ___ ___ 3 Would your suppliers find it difficult to enter your business? ___ ___ 4 Can you substitute inputs readily? ___ ___ 5 Do you have many potential suppliers? ___ ___ 6 Is your business important to your suppliers? ___ ___ 7 Does your cost of purchases have a significant influence on your overall costs? ___ ___ Who are your suppliers or what products/services do they provide? What are the key factors of supplier power? COMMENTS: END