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Exhibit 2: Worksheet on Domain Name
Registration Industry Structure
Part1: Affiliate Registrars
1. Threat of new entrants (How easily could other firms enter
your industry?)
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Yes
(+)
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?
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No
(-)
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1.
Do large firms have a cost or performance
advantage?
|
+
|
|
|
|
2.
Are there any proprietary product
differences in the industry?
|
|
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-
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|
3.
Are there any established brand identities
in the industry?
|
+
|
|
|
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4.
Do customers incur any significant costs in switching suppliers?
|
|
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-
|
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5.
Is a lot of capital needed to enter the industry?
|
|
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-
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6.
Is serviceable used equipment expensive?
|
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?
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|
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7.
Does the newcomer to the industry face
difficulty in accessing distribution channels?
|
|
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-
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8.
Does experience help to continuously lower
costs?
|
|
|
-
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9.
Does the newcomer have any problems in
obtaining the necessary skilled people, materials or suppliers?
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|
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-
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10.
Does the product or service have any
proprietary features which give you lower costs?
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|
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-
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11.
Are there any licenses, insurance or
qualifications, which are difficult to obtain?
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|
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-
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12.
Can the newcomer expect strong retaliation
on entering the market?
|
|
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-
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13.
Is the industry growing fast enough that the
newcomer does not have to take market share from existing players?
|
+
|
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High barriers to entry = 3 (+) factors (favourable
to firms already in the industry)
Low barriers to entry = 9 (-) factors (unfavourable
to firms already in the industry)
Moderate/Undecided = 1 ?
2. Bargaining power of buyers
(To what extent are the customers locked in?)
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Yes
(+)
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?
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No
(-)
|
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1.
Is there large number of buyers relative to
the number of firms in the business?
|
+
|
|
|
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2.
Is there large number of customers, each
with relatively small purchases?
|
+
|
|
|
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3.
Does the customer face any significant costs
in switching suppliers?
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|
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-
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4.
Does the buyer need a lot of important
information?
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|
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-
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5.
Is the buyer aware of the need for
additional information?
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?
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6.
Is there anything that prevents the customer
from taking the function in-house?
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?
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7.
Are the customers not highly
sensitive to price?
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|
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-
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8.
Is the product unique to some degree or does
it have accepted branding?
|
+
|
|
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9.
Are the customers' businesses profitable?
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?
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10.
Are there incentives to the decision-makers?
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|
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-
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Low bargaining power of buyers = 3 + factors (favourable
to firms already in the industry)
High bargaining power of buyers = 4 - factors (unfavourable
to firms already in the industry)
Moderate/Undecided = 3 ?
3. Threat of substitutes (Are there some other products or
service that perform the same job?)
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Yes
(+)
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?
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No
(-)
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1.
Substitutes have performance limitations
that do not completely offset their lowest price, or their performance
advantage is not justified by their higher price.
|
+
|
|
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2.
The customer will incur costs in
switching to a substitute.
|
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?
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3.
The customer has no real substitute.
|
+
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|
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4.
The customer is not likely to
substitute.
|
+
|
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Low threat of substitution = + factors (favourable to
firms in the industry)
High threat of substitution = - factors (unfavourable
to firms in the industry)
Moderate/Undecided = 1 ?
4. Bargaining power of suppliers (To what extent is the firm
dependent on the suppliers?)
|
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Yes
(+)
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?
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No
(-)
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1.
My inputs (materials, labour, supplies,
services, etc.) are standard rather than unique or differentiated.
|
+
|
|
|
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2.
I can switch between suppliers quickly and
cheaply.
|
+
|
|
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3.
My suppliers would find it difficult to
enter my business or my customers would find it difficult to perform
my function in-house.
|
|
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-
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4.
I can substitute inputs readily.
|
+
|
|
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5.
I have many potential suppliers.
|
+
|
|
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6.
My business is important to my suppliers.
|
+
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|
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7.
My cost of purchases has a significant
influence on my overall costs.
|
+
|
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Low bargaining power of suppliers = 6 + factors (favourable
to firms already in the industry)
High bargaining power of suppliers = 1 - factors (unfavourable
to firms already in the industry)
Moderate/Undecided = 0 ?
5. Determinants of rivalry among existing competitors
(What is the present competitive environment like?)
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Yes
(+)
|
?
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No
(-)
|
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1.
The industry is growing rapidly.
|
+
|
|
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2.
The industry is not cyclical with
intermittent over-capacity.
|
|
?
|
|
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3.
The fixed costs of the business are a
relatively low portion of total costs.
|
+
|
|
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4.
There are significant product differences
and brand identities between the competitors.
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|
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-
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5.
The competitors are diversified rather than
specialized.
|
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?
|
|
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6.
It would not be hard to get out of
this business because there are no specialized skills and facilities
or long-term contract commitments, etc.
|
+
|
|
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7.
The customers would incur significant costs
in switching to a competitor.
|
|
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-
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8.
The product is complex and requires a
detailed understanding on the part of the customer.
|
|
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-
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9.
The competitors are all approximately of the
same size.
|
+
|
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Lower intensity of rivalry = 4 + factors (favourable
to firms in the industry)
Higher intensity of rivalry = 3 - factors (unfavourable
to firms in the industry)
Moderate/Undecided = 2 ?
Overall industry rating
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Favourable
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Moderate
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Unfavourable
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Net
|
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Threat of new entrants
|
+3
|
?1
|
-9
|
-6
|
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Bargaining power of buyers
|
+3
|
?3
|
-4
|
-1
|
|
Threat of substitutes
|
+3
|
?1
|
-0
|
+3
|
|
Bargaining power of suppliers
|
+6
|
?0
|
-1
|
+5
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Intensity of rivalry among competitors
|
+4
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?2
|
-3
|
+1
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