[pic] Question: Use Porters Five Forces Model to analyse your industry. Answer: Threat of new entrants In most industries‚ and especially in the Electrical Transformer industry‚ a new company cannot enter the market at an equal level with those of already established companies due to the number of barriers that exist‚ that will prevent them entering on equal grounds‚ some of these are as follows‚ · The cost of a new company staring up would be so large due to the large amount of new
Premium Wind farm Wind power Porter five forces analysis
Michael Porter’s Five Forces Model Michael Porter … “An industry’s profit potential is largely determined by the intensity of competitive rivalry within that industry.” Porter’s Five Forces Portfolio Analysis … … Strategy at the time (1970s) was focused on two dimensions of the portfolio grids … … Industry Attractiveness … Competitive Position Where was Michael Porter coming from? School of Economics … … at Harvard … Structural reasons why … … some industries were profitable
Premium Strategic management Porter five forces analysis Management
Apple and the Five Forces Model Companies use Porter’s model to develop strategies to increase their competitive edge. Porters model also demonstrates how IT can make a company more competitive. Porters’s model identifies five major forces that can endanger or enhance a company’s position in a given industry. The five forces in the model include: 1) Threat of entry of new competitors: Apple essentially dominates the consumer electronics industry. Apple puts a huge effort into R&D. Each and every
Free Apple Inc. Porter five forces analysis
Porter Five Forces Analysis STRUCTURE AND REMAIN CONCEPTS: The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants‚ which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents‚ the abnormal profit rate will tend towards zero (perfect competition). The existence of barriers to entry (patents‚ rights‚ etc.) The most attractive segment
Premium Strategic management Porter five forces analysis Management
to determine how this competitive environment affects the competence in our evaluated firm. Then comes the internal analysis to determine if Apple has or not the tools to be considered as a firm with a competitive advantage above its rivals. Porter´s Five Forces Analysis: New Entrants’ Threat: * Because of standardization of PC components and thanks to the economies of scale‚ the prices came down significantly in this industry‚ this represents a great barrier to new entrants who has to decide
Premium Personal computer
The Five Forces Model was developed by Michael Porter in 1979 as a tool to analyse and classify an industry as well as identify profit potential areas in an industry. The model uses five forces of the industry to help identify three major aspects of an industry; competition‚ profitability‚ and attractiveness of the industry Rivalry among existing firms in the confectionery industry is very high + gain market share from their competitors + creating new products‚ changing existing products‚ or
Premium Confectionery Competition Price
Porter’s Five forces Porter’s five forces tool will assist in analysing the competitive nature of the airline industry in order to assess the position of Flyafrica. This will enable FlyAfrica to make strategic decisions in order to increase geographical presence and profitability. Entry Barriers (Threat of new entrance) Threat of New Entrants This aspect has a low threat for the Zimbabwean airline industry because there are extremely low switching costs. Additionally‚ there are no proprietary
Premium Airline Negotiation Federal Aviation Administration
12/6/2005 Strategic Computing and Communications Technology Fall 2005 Individual requirement 2 Koji Murao (18468500) Note I intentionally focus on one industry‚ the game industry‚ for all the four reports and analyze the strategy of each player in conjunction with the news I chose. Focusing on one industry made me realize how much the strategic aspects that we have learned in the class are working to shape the industry dynamics. News Nintendo has joined forces with McDonald’s to offer
Premium Wi-Fi Nintendo Wii
Q1. How does Merck evaluate the effectiveness of its ethics-related activities? Merck has a strong sense of ethics within the company ’s credo and morals and also reflects on its employees. In spite of having major financial crisis‚ its motto never changed or got altered. It increased the finding to the research institutions in Africa and places. It made sure that the motto of the George W. Merck‚ former Chairman and son of the founder of Merck was always above any hurdles that Merck as a company
Premium Pharmacology Clinical trial Pharmaceutical industry
Merck: Pricing Gardasil Merck & Co. has developed a brand-new vaccine called Gardasil. Gardasil is the first vaccine in the world that helps prevent the cervical cancer and HPV. Allison Watkins‚ senior director of Merck’s Vaccines Division‚ is faced with the decision of determining the price of Gardasil. An outside consulting firm had suggested a price of $120 per dose‚ or $360 per person. Watkins needs to make the final decision and apparently that she does not accept with that price. The best
Free HPV vaccine Human papillomavirus