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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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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OCTOBER 1992 ISSUE The Arrow of Disease When Columbus and his successors invaded the Americas‚ the most potent weapon they carried was their germs. But why didn’t deadly disease flow in the other direction‚ from the New World to the Old? By Jared Diamond|Thursday‚ October 01‚ 1992 The three people talking in the hospital room were already stressed out from having to cope with a mysterious illness‚ and it didn’t help at all that they were having trouble communicating. One of them was the patient‚
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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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24th‚ 2008 Geology MW 7:45 Extra Credit Diamonds are a Girl’s Best Friend A diamond is considered to be one of the most precious and rare stones on earth. These stones “are rare for three reasons: they form deep within the Earth in very localized places beneath continents‚ an extremely unusual kind of volcanic activity is needed to bring [diamonds] to the surface‚ and only about 20 per cent of them are gem quality” (Fleet‚ Hart‚ Wall 23). Not all diamonds are good enough to sell for jewelry purposes
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Diamonds are Forever (from Sierra Leone)‚ Kanye West The famous song “Diamonds are Forever (from Sierra Leone)” is not only a good song that is sung by a legendary music artist‚ Kanye West‚ but it is a hidden message political song that is directly talking about the precious blood diamonds from the southern countries of the continent Africa. When someone hears the two words “blood diamond‚” most would probably assume that the diamonds are from Africa and that there are many people who die trying
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