Q1) Any strategic decision should be estimated with careful consideration to changes in industry. Understanding industry trends will aid you develop strategy which exploits those trends favorable to you, while avoiding trends that may hurt your firm.
Internet will create effective substitutes to greeting cards and these will improve in quality as technology improves. Substitutes will decrease 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 Internet play for greeting card company like Shomei? Besides being a substitute card, how else can Shomei and others use Internet to grow their business and sell more cards?
For selected trend, you are to comment on how trend strengthens or weakens competitive advantage and industry position strength of Shomei Cards and its competitors. You are to post your comments below.
You should also comment on trend analysis posted by at least one of your fellow students comments must include whether or not you agrees with their assessment of how trend will impact Shomei and reasoning behind why you agrees or disagrees. Be sure that they require to wait a day or two after you post your statement to respond to those of your colleagues.