FIVE FORCES ANALYSIS WORKSHEET Exhibit III-1 Five Forces Affecting Industry Structure ENTRY BARRIERS Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Proprietary learning curve Access to necessary inputs Proprietary low-cost product design Government policy and international treaties Expected retaliation RIVALRY DETERMINANTS Industry Growth Fixed (or storage) costs/value-added Intermittent overcapacity
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Using Porter’s Five Force analysis to assess this industry‚ one notices that first of all the internal rivalry would be intense between us and Empire Plastics and both companies (and others) would try to severely underprice the other’s offer. There would be considerable buyer power since the target customers would be giant supermarket chains and there is little customer diversity‚ with a very few customers dictating who they buy from and even what price they pay. In addition there would be a lot
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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……………………………
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Strategic Management – trategic Industry Analysis Assignment SUBMITTED TO PROF. S. SRIRAM SUBMITTED BY APARNA PARTHASARATHY Aparna Parthasarathy PGXPM -05 –Term 5 05 10/1/2009 Strategic Management – Industry Analysis Assignment 2009 INSTRUCTIONS FROM PROF. SRIRAM PDF of INDIAN TV Industry is circulated as a sample for your reference. The take home assignment for the SM course is as follows: 1. Please do a analysis of your Industry using the five force framework. 2. Identify a cost leader/differentiator
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Q.1: a) PORTER’S FIVE FORCES ANALYSIS & PORTER’S VALUE CHAIN TECHNIQUES. Michel porter(1998) provided a frame work that models an industry as being influenced by five forces. This simple tool that supports strategic understanding where power lies in a business situation. It also help to understand both the firms current competitive position‚ &strength of a position that the company looking to move in to. Five forces diagram in the (Appendices 1.1). Threat of new entrants:
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External Analysis According to Porter (1985): "The essence of formulating competitive strategy is relating a company to its environment" (p. 3) in relation to the industry or industries in which it competes. This leads companies to choose one of three generic strategies – low cost‚ differentiation or focus – which will help them to form competitive‚ profitable positions within the industry. To understand the low-cost strategies that both SBUs adopted‚ a formal PEST and five forces analysis of the
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Team #5 MGMT449 02/18/2012 Hewlett-Packard’s Five Competitive Forces "To provide products‚ services and solutions of the highest quality and deliver more value to our customers that earns their respect and loyalty. HP’s Mission Statement” Hewlett-Packard or HP as commonly known is a leading global provider of products‚ technologies‚ software‚ solutions‚ and services to individual consumers‚ small-and-medium-sized business and large enterprises‚ including customers in the government‚ health
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Five Forces Analysis Intensity of Competitive Rivalry There are several firms fiercely competing Adidas for more market share‚ including Nike‚ Puma‚ Reebok and Umbro to name a few. Adidas must ensure that their goods are of a high quality and at a reasonable price in order to keep their market share in this industry. Intensity in this industry is high as there are a large number of organisations with similar products all trying to gain market share. Threat of Entry to the Industry
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Harlequin Five Forces Analysis Threat of Entry High economies of scale required. For an entrant to gain success in romance novel market‚ it must possess mature sales‚ production‚ and distribution to operate effectively‚ which also leads to great risk. High product differentiation required. Other companies start to add more features while Harlequin products remain relatively unchanged. Significant capital requirement required. This is evident in Simon and Schuster’s case‚ in which it bears a high
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* Example: * Let’s take the Sky TV case as a typical example of penetration pricing. Sky TV is launched with a very low price‚ when many companies started using them‚ their prices continued to climb‚ however the product offered is good‚ so it continues to be used. This example also means that when Manac applies this method for their customized product‚ they need to concern more about after-sale service. * For instance‚ Manac is specializing in electrical goods‚ thus‚ the safety as well as
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