Perodua Porter s 5
Porter’s|
Five Forces Model
Value Chain Model
&
Analyses
(AUTOMOTIVE INDUSTRY)
Prepared By:
Mohd Shahril Bin Mat Nordin
GP02684
National University of Malaysia
TTTU6414 | Information Technology Management
OUTLINE
1. Overview of Porter’s Five Forces Model
2. Porter’s Five Forces Model Analysis for TOYOTA
3. Overview of Porter’s Value Chain Model
4. Porter’s Value Chain Model Analysis for PERODUA
5. Conclusion
6. References
Porter’s Five Forces Model
Overview
Figure 1 : Porter’s Five Forces Model
•
Also known as competitive forces model developed by Michael E. Porter in 1979 to understand how the five competitive forces impacting an industry.
•
•
An analysis tool to determine the profitability of an industry and develop a firm's competitive strategy.
As a framework that classifies and analyses the most important forces that affect the intensity competition in an industry and its profitability level.
Porter’s Five Forces Model |
Overview
THREAT OF NEW force ENTRANTS determines how easy (or
This not) to enter a particular industry. If an industry is profitable and there are few barriers to enter, competition soon intensifies. When more organizations compete for the same market share, profits start to fall. It is important for existing organizations to build high
Possible
Factors
:
barriers to enter in order to prevent new entrants.
• The existence of barriers to entry
•
•
•
•
•
•
•
•
•
•
•
•
Government policy
Capital requirements
Absolute cost
Cost disadvantages independent of size
Economies of scale
Product differentiation
Brand equity
Switching costs or sunk costs
Expected retaliation
Access to distribution
Customer loyalty to established brands
Industry profitability
Possible Factors :
• Supplier switching costs relative to firm switching costs
• Degree of differentiation of inputs
• Impact of inputs on cost or differentiation • Presence of substitute inputs
• Strength of distribution channel
• Supplier concentration to firm concentration ratio
Five Forces Model
Value Chain Model
&
Analyses
(AUTOMOTIVE INDUSTRY)
Prepared By:
Mohd Shahril Bin Mat Nordin
GP02684
National University of Malaysia
TTTU6414 | Information Technology Management
OUTLINE
1. Overview of Porter’s Five Forces Model
2. Porter’s Five Forces Model Analysis for TOYOTA
3. Overview of Porter’s Value Chain Model
4. Porter’s Value Chain Model Analysis for PERODUA
5. Conclusion
6. References
Porter’s Five Forces Model
Overview
Figure 1 : Porter’s Five Forces Model
•
Also known as competitive forces model developed by Michael E. Porter in 1979 to understand how the five competitive forces impacting an industry.
•
•
An analysis tool to determine the profitability of an industry and develop a firm's competitive strategy.
As a framework that classifies and analyses the most important forces that affect the intensity competition in an industry and its profitability level.
Porter’s Five Forces Model |
Overview
THREAT OF NEW force ENTRANTS determines how easy (or
This not) to enter a particular industry. If an industry is profitable and there are few barriers to enter, competition soon intensifies. When more organizations compete for the same market share, profits start to fall. It is important for existing organizations to build high
Possible
Factors
:
barriers to enter in order to prevent new entrants.
• The existence of barriers to entry
•
•
•
•
•
•
•
•
•
•
•
•
Government policy
Capital requirements
Absolute cost
Cost disadvantages independent of size
Economies of scale
Product differentiation
Brand equity
Switching costs or sunk costs
Expected retaliation
Access to distribution
Customer loyalty to established brands
Industry profitability
Possible Factors :
• Supplier switching costs relative to firm switching costs
• Degree of differentiation of inputs
• Impact of inputs on cost or differentiation • Presence of substitute inputs
• Strength of distribution channel
• Supplier concentration to firm concentration ratio