XYZ‚ would be Porter ’s Five Force Model. The Five Force model gives focus to the external environment of the organization. It reveals the source of competition in an industry‚ and the external influence‚ including the threats and opportunities that an organization has to face in order to gain a competitive advantage. The Value chain on the other hand‚ focuses on the internal analysis of the business activities. In this section we will be briefly be discussing the factors of the model‚ those being
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Estee Lauder Companies‚ Inc. _ 2008 Introduction: Estée Lauder founded this Company in 1946 armed with four products and an unshakeable belief: that every woman can be beautiful. Today‚ more than 60 years later‚ that simple notion has literally changed the face of the beauty business. The Estee Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care‚ makeup‚ fragrance and hair care products. The Company’s products are sold in over 130 countries
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Limitations of Porter’s Five-Force Model Chaitanya K Mandyam American Public University System Michael Porter observed and explained the different levels of profitability across firms and industries by his “Porter’s Five - Forces”. The main factors that affect the difference are: 1. Threat of Substitutes‚ 2. Buyer Power‚ 3. Supplier Power‚ 4. Barriers to Entry/Threat of Entry and 5. Rivalry. He analyzed the importance of all these forces minutely and provided
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Porter’s Five Forces Model Posted on April 4‚ 2009 by admin Porter’s five forces model helps in accessing where the power lies in a business situation. Porter’s Model is actually a business strategy tool that helps in analyzing the attractiveness in an industry structure. It let you access current strength of your competitive position and the strength of the position that you are planning to attain. Porters Model is considered an important part of planning tool set. When you’re clear about where
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Michael Porter’s Five Forces Model Michael Porter … “An industry’s profit potential is largely determined by the intensity of competitive rivalry within that industry.” Porter’s Five Forces Portfolio Analysis … … Strategy at the time (1970s) was focused on two dimensions of the portfolio grids … … Industry Attractiveness … Competitive Position Where was Michael Porter coming from? School of Economics … … at Harvard … Structural reasons why … … some industries were profitable
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Weakness For Estee Lauder 1. Decline in Estee Lauder and Clinique Brands Sales in the quarter rose 7.1 percent to $1.7 billion. Makeup and skin care sales increased in the quarter‚ but the company said there was weakness in sales of its core brands‚ and in the domestic market. Estee Lauder and Clinique are their largest brands. Worldwide‚ sales of each brand climbed by low single digits. We will increase investment in Clinique in fiscal ’07 to facilitate growth in the U.S. and build on
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Apple and the Five Forces Model Companies use Porter’s model to develop strategies to increase their competitive edge. Porters model also demonstrates how IT can make a company more competitive. Porters’s model identifies five major forces that can endanger or enhance a company’s position in a given industry. The five forces in the model include: 1) Threat of entry of new competitors: Apple essentially dominates the consumer electronics industry. Apple puts a huge effort into R&D. Each and every
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This ad for Estee Lauder’s Re-Nutriv Intensive Age-Renewal Crème was featured in Vogue magazine. The ad is two pages‚ one page of a well polished looking woman‚ and the next with the crème itself and a small passage. The target audience is most likely to be women over the age of 35 whose skin start to show signs of aging. This ad falls into the category of a promise ad and also a comparative ad. The slogan for this product is probably the bold words written above‚ “SuperCrème. Super Potent.” The
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[pic] Question: Use Porters Five Forces Model to analyse your industry. Answer: Threat of new entrants In most industries‚ and especially in the Electrical Transformer industry‚ a new company cannot enter the market at an equal level with those of already established companies due to the number of barriers that exist‚ that will prevent them entering on equal grounds‚ some of these are as follows‚ · The cost of a new company staring up would be so large due to the large amount of new
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SWOT Analysis of Estee Lauder * Exposed to crisis events (SARS‚ recession‚ terrorism etc) causing downturn in travel * Downturn in department store sales * Other competitors * Americans stagnating spending on cosmetics * Growth opportunities in China‚ Russia‚ Eastern Europe‚ Brazil and India * Availability for strategic alliances in the electronic commerce area * Plenty of candidates for acquisition W S T O * Management expertise * Marketing ability
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