Porter's Five Forces Model

A. Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter's Five Forces Model to discuss that industry's competitive forces and their relative influence. Proctor and Gamble is one of the America biggest markets of household products with at least 250 brands in six main groups. These are the categories laundry, and cleaning, paper goods, beauty care, feminine care, and health care. P&G also makes pet food and pure filters. So far P&G market its products to more than five billion consumers in 130 countries. The company has on the ground operations in over 70 countries around the word, and employees more than 106,000 employees. The financial condition of the company continues to be of high quality as an evidence of their ability to generate substantial cash from operations and ready access to capital market at competitive rates.
On 2011 the operating cash flow was 13.2 billion these cash flow resulted primarily from net earnings adjusted for non-cash items( depreciations, deferred taxes, stock-base compensation etc) an a reduction of working capital Threat of New Entrants: Anyone that is an inventor can come up with some invention or idea to revolutionize a product or even start a new trend of products. Because of the industries potential being so profitable, the selection of products that one can specialize in is there to be utilized. The only problem would be that the new entrant into this industry, due to the high demand of better products and the established companies expanding to satisfy this demand, would have to enter on a large scale of one product or many products.

Bargaining Power of Supplier: As the suppliers are the main players in the market, they are able to negotiate favorable terms and conditions for their products. The supplier’s brand loyalty helps with influence, an s these products are one of a kind in this type of market.

Bargain Power of Buyers: If the buyer does not want the