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Greeting card industry position and formulating plan
Any strategic decision must be evaluated with careful consideration to changes in the industry. Understanding industry trends will help you develop a strategy that exploits those trends favorable to you, while avoiding trends that may hurt your firm.
The Internet will generate effective substitutes to greeting cards and these will improve in quality as technology improves. Substitutes will reduce the industry's PIE, unleash higher levels of competitor rivalry, and diminish Shomei's competitive advantage as prices are lowered. Let's step back - what competitive role can the Internet play for a greeting card company such as Shomei? Besides being a substitute card, how else can Shomei and others use the Internet to grow their business and sell more cards? For the chosen trend, you are to comment on how the trend strengthens or weakens the competitive advantage and industry position strength of Shomei Cards and its competitors. You are to post your comments below.
You must also comment on the trend analysis posted by at least one of your fellow students the comments should include whether or not the you agrees with their assessment of how the trend will impact Shomei and the reasoning behind why the you agrees or disagrees. Make sure that they need to wait a day or two after you post your statement to respond to those of your colleagues.
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