this‚ is through industry analysis. As explained by Porter “to sustain long-term profitability you must respond
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methodology called the Porter’s Five Forces Analysis. In his book Competitive Strategy‚ Harvard professor Michael Porter describes five forces affecting the profitability of companies. These are the five forces he noted: 1. Intensity of rivalry amongst existing competitors 2. Threat of entry by new competitors 3. Pressure from substitute products 4. Bargaining power of buyers (customers) 5. Bargaining power of suppliers These five forces‚ taken together‚ give us insight
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Threat of new entrants – 1. Low capital requirements to entry 2. Sufficient suppliers to support new entrants: a fragmented industry means there are sufficient suppliers for new entrants to “discover” to build relationships with‚ and even Winestyr’s existing customers would probably want to build additional distribution channels 3. Easy for existing brick and mortar sellers to enter as they already have a customer base and are likely to have industry/regulation knowledge as well Bargaining Power
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Article Review: The Five Competitive Forces That Shape Strategy Porter’s Lesson: Michael E. Porter’s article‚ the five competitive forces that shape strategy‚ is an article that dissects the true underlying factors of competition and industrial structure. Throughout the context of the article‚ Porter thoroughly explains how competition and profitability does not only derive from production of goods and services or the level of sophistication of a firm. Instead‚ he claims that in order for an
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favorite products and this is reflected in the orders an individual telecom carrier books with suppliers‚ such as Blackberry. Threat of new ENTRANTS: Low/Moderate/Low/Low - Very expensive to enter market ( R&D cost) - Difficult to negotiate with distribution channels - Large brand loyalty for existing products - Economies of scale - Large Rivalry - A new entrant that is able to produce a well-differentiated and innovative product can steal market share from existing competitors
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How Israel eliminated the terror attacks from the west bank in the years 2001-2009 Order of presentation: - A movie about the Terror attacks: http://www.youtube.com/watch?v=ibOFF4KfdMQ - What led to this terror attacks: Background: The events of 2000-2001: the Second Intifada‚ also known as the Al-Aqsa Intifada‚ (September‚ 2000) 1. More commonly cited is September 28‚ 2000‚ when Palestinian rioting erupted following Ariel Sharon’s visit to the Temple Mount‚ an area known
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The Five Forces Model of Porter The Five Forces Model (P5F) and the framework behind it dates back to the early 80s and was the work of Michael Porter‚ a scholar working and teaching at the Harvard Business School. This model (see figure 1)‚ as declared by its creator‚ was able‚ at that time‚ to fill a void‚ in the management field corresponding to the development of a new discipline‚ Competitive Strategy. It came at a time when down-sizing‚ re-engineering etc. were elements of strategic choice
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Porter’s Five Forces Model Michael E. Porter’s five forces of competitive position model and diagrams Michael Porter’s famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization. New Market Entrants‚ eg: • • • • • entry ease/barriers geographical factors incumbents resistance new entrant strategy routes to market Supplier Power‚ eg: • • • • • brand reputation
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competition very high. There are 1000’s of other sites which look the same and provide the same retail goods. References: http://www.target.com.au http://www.amazon.com Threat of new entrants-Barriers to entry is very low‚ since there are readymade platforms available for people to create their own website without any issues. A new online shopping store can be setup with much less hassle than a retail store therefore anyone can come up with similar products. Bargaining power of suppliers- Bargaining
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Introduction The five forces model framework was developed by Michael E. Porter in 1979 to analyse the industry factors that affects the company’s competitive strategy and helps to determine the threats from competitors in the market. According to Porter‚ there are five factors namely: Potential New Entrants‚ Substitutes‚ Industrial competitors‚ Buyer power and Supplier Power. Porter (1988) Figure 1. Five Forces Framework Threat of New Entrants: Low to moderate Procter and Gamble (P&G) products
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