talented individual is working in a smaller regional bank‚ there is the chance that person will be enticed away by bigger banks‚ investment firms‚ etc. 2. Power of Buyers. (LOW TO MEDIUM)The individual doesn’t pose much of a threat to the banking industry‚ but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage‚ car loan‚ credit card‚ checking account and mutual funds with one particular bank‚ it can be extremely tough for that person to switch
Premium Bank Financial services Finance
Running head: PORTER’S STRATEGIC FRAMEWORK Porter Five Forces Analysis Managerial Economics – MBA 500 Instructor: Professor Franklin By: LaTonya Perryman Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration Concordia University Wisconsin November 1‚ 2011 Table of Contents Introduction……………………………………………………………………………3 Michael Porter’s Strategic Framework…...……………..……………………..………3 The Long-run Efficiency Implications of an Oligopoly……………………………
Premium Economics Monopoly Perfect competition
that impact a company via the usage of competitive advantage. Porter is a recognized leader in competitive analysis elaboration‚ who has elaborated five forces theory‚ which states that competitive advantage comes from the ability to gain profit via investment in an industry sector with higher than the average return. He is the author of main models on determination of main competitive forces and variants of competitive strategies. Porter believes that the market share‚ the profit level of a company
Premium Strategic management Competitor analysis Porter five forces analysis
Online Retail Industry Competitive Rivalry 1995-2004 The Threat of New Entrants The Power of Suppliers Degree of Competitive Rivalry Buyers Substitutes Introduction Before venturing into the online retail industry you need to be able to answer yes to the following questions. Are you entering an industry in which product development and innovation (as opposed manufacturing and marketing)‚ play a central role in bringing products/services to markets? Is the industry structure highly
Premium Barriers to entry Monopoly Fixed cost
EXHIBIT 1 Porter’s 5 Forces: Computer Industry Threat of New Entrants: Medium With the standardization of most of the computer components‚ it becomes easy for customers to change their laptops. This leads to a moderate customer switching cost. The availability of direct-to-customer service and retailers‚ it becomes easy for customers to find their desired product as well as for companies to provide their products in less time and with reduced cost. If any new player wants to enter into the market
Premium Personal computer Switching barriers Computer
The Carbonated Soft Drink (CSD) industry is a profitable one despite the “Cola Wars” between the two largest players – Coke and Pepsi. Such profitability can be understood by analyzing the CSD’s industry structure in terms of “Porter’s five forces.” Threat of New Entry The existing players in the soft drink industry have much advantage relative to new entrants. First‚ supply-side economy discourages new entrants by forcing them to enter the market in large scale. CSD’s demand side benefits
Premium Pepsi Coca-Cola Cola
INTRODUCTION An industry is a group of firms whose products are close substitutes for each other (e.g. the car industry‚ the travel industry). Some industries are more profitable than others. Why? The answer lies in understanding the dynamics of competitive structure in an industry. The external environment of an organization is marked by intense competition between rival firms. The components of external environment include economic‚ socio-cultural‚ and global issues. In order to gain sustainable
Premium Strategic management Porter five forces analysis
in which the organisation operates simply by looking at its website - you may also find it useful to consider other sources of background information such as undertaking a “Google search” of the low cost airline sector or using for example Mintel industry reports. When examining corporate websites‚ searching under headings such as "About us" or "Corporate Information can provide valuable information. When applying this model‚ it is important to remember that it examines the five factors (known
Premium Porter five forces analysis Management Complementors
In Michael Porter’s article about The Five Competitive Forces that Shape Strategy‚ he identifies the five forces that shape industry competition as: threat of new entrants‚ bargaining power of buyers‚ threat of substitute products or services‚ bargaining power of suppliers‚ and rivalry among existing competitors. Then he breaks each of these down even further‚ giving information about the factors that should be considered when making assessments in each of these areas. The main underlying purpose
Premium Strategic management Management
of these models was the “five forces analysis of industry attractiveness” which said the “attractiveness” i.e. profitability of an industry or market is based on five factors which are: Threat of new entrants l Bargaining power of supplier - Rival firms(competition) - bargaining power of buyers l Substitute firms(if you make butter‚ they make margarine and might steal your customers) What this means is the industry should be judged or analyzed by viewing these five
Premium Strategic management Management