ssPorter’s 5 forces analysis for Arcelor Mittal 1. Competitive rivalry: Industry rivalry is high: Arcelor Mittal is still ranked no. 1 in the world top steelmakers (World SteelAssociation‚ 2013) with a reported 96.1 tonesof crude steel in 2013‚ higher than 93.6 tones in 2012. In 2014 Arcelo Mittal produced around 119 tones crude steel‚ it is present in 22 countries‚ all over the world. Ranked no.2 is Nippon Steel & Sumimoto Metal Corporation‚ with 50.1 tones crude steel in 2013. However‚ many companies
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restaurants that serve coffee or other items like tea‚ soda and coffee from home; also‚ the switching cost are low for the consumer. All of this combined means the threat of substitutes is extremely high in this case. The fourth item in Porter’s model is the threat of new entrants. The threat of new entrants refers to the ability of new competition to enter the market. Starting a coffee shop does not require economies of scale‚ the capital investment is low and consumer switching cost is low; all
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5 Forces Model 1. Threat of New Entrants.( LOW) a. The average person can’t come along and start up a bank‚ but there are services‚ such as internet bill payment‚ on which entrepreneurs can capitalize. Banks are fearful of being squeezed out of the payments business‚ because it is a good source of fee-based revenue. b. Another trend that poses a threat is companies offering other financial services. What would it take for an insurance company to start offering mortgage and loan services? Not
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‘safeguard against the illegal use or application of patented technology and copyrights by local imitators’ (Isobe et al.‚2000). The FFF presumes that rivalry in its economic form is not impeded by forces ‘external’ to the product marketplace. The model transports‚ perhaps inadvertently‚ a dominant assumption of Bain/Mason paradigm (Bain‚ 1968; Mason‚ 1939): legally enforced rules pertaining to Antitrust (e.g. price discrimination‚ collusion and unfair trade practices) and to intellectual property
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prevailing therein. The most influential analytical model for assessing the nature of competition in an industry is Michael Porter’s Five Forces Model‚ which is described below: Michael Porter described a concept that has become known as the "five forces model" to help understand how competition affects your business. Porter’s 5 forces analysis is a framework for industry analysis and business strategy development developed by Michael E. Porter in 1979 of Harvard Business School. It uses concepts
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Tom Robbins‚ a highly esteemed post-modern writer‚ takes much pride in calling himself a disillusioned feminist. Growing up during the second wave of feminism‚ Robbins found himself at many a feminist rally‚ and found that he was in love with the idea of feminism and of course‚ women‚ but he was disgusted by feminists. Thus‚ when Tom Robbins became an author‚ he wrote novels that not only told a story‚ but were able to be platforms for his conscious beliefs and ideals‚ such as his belief in feminism
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In which industry does P&G compete? Apply Porter’s Five Forces Model to the industry. Is this an attractive industry? P&G is one of the leading companies that are operating in the household consumer product industry. P&G’s threat of substitution is extremely high as there are many companies producing household consumer products‚ both national and international such as Clorox‚ Kimberly-Clark and Colgate-Palmolive CL. Also‚ P&G is also competing with retailers private label brands
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To analyse the specific activities through which firms can gain a competitive advantage‚ it is useful to model the firm as a chain of value creating activities. For this purpose‚ Porter identified a range of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain. According to Porter (1985)‚ " Competitive Advantage arises out of the way firms organise and arrange discrete activities". Through using the Value Chain‚ the activities performed
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Porter Five Forces Model in the internet era: How internet opens and restricts new avenues of Porter Five Forces BADM 470-02 Background: “It is not possible to ignore the ability of the internet to unlock a company’s wall‚ to discover and exploit opportunities outside its existing businesses…” “The use of internet has not changed the basic economic laws‚ but has changed the way the world does business” Cooperation of key industry players would facilitate innovation and thus increase
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Executive Summary Porter Airlines is a continued success in the short haul air travel business. Its low cost structure has enabled them to be proactive in the industry and gain a fairly large market share. Porter’s strategic successes include its quick turnaround time upon departure and arrival‚ its competitive ticket pricing‚ web ticket sales and its exceptional customer service. In addition‚ Porter’s low cost and low maintenance on their Q400 turboprops give them a competitive
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