great importance on their long term relationships with suppliers and their aim is to ensure customers receive a consistent product quality. Analysis of McDonalds Corporation using the Porters 5 forces model to asses its competitive position in the fast food industry. As the name suggests the Porters 5 Forces model focuses on 5 key factors affecting the environment in which a business operates. They are 1) Competitive rivalry 2) Power of suppliers 3) Power of buyers 4) Threat of substitute
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SWOT-Analysis Strengths and Weaknesses To gain a competitive advantage‚ the profit rate of a corporation has to be higher than for the average of the industry. The profit rate is the difference between the value the customers attach to the product and the costs of producing it. It is determined through the performance of the different value creation functions. R&D -Innovative Products Production -high quality of ingredients -40% of total costs are food costs Marketing -Outback has won several
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Mapping the Southeast Asian Telecommunications Service Industry using the Porter’s Five Forces Analysis The telecommunication industry offers a diverse set of products which includes Mobile Voice calling & Messaging‚ Mobile data‚ fixed voice calling‚ fixed broadband‚ satellite & IP TV‚ Mobile money etc. The major players in the Southeast Asian telecom industry (Singtel‚ Axiata‚ Telenor‚ Hutchison etc.) are facing a number of challenges .Emergence of Over The Top (OTT) communication tools poses a
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Porter argues that if a firm is to attain competitive advantage; it must choose between the types of competitive advantage it seeks‚ discuss using an industrial example? An industry can be defined as a group of companies offering products that are closely substituting for each other in order to satisfy customers. Competitive advantage can be defined as when a firm sustains profit which exceeds the company’s average; it automatically possesses competitive advantage over rivals. The business strategy
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Individual Case Assignment 1 I c) The competitor I choose is Sonic Corp.‚ their competitors are 1) Burger King‚ 2) McDonald’s and 3) Whataburger. The first financial ratio calculated was the current ratio. The industry percentage is .93‚ McDonald’s current ratio is 1.14 and Sonic is 1.72. Both companies have ability to pay back their short-term liabilities with their short-term assets. Debt to Equity: McDonald’s: .75‚ Sonic (-172.3) and the industry: 1.00. Sonic’s short-term debt has gone up
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The theories of both Michael Porter and Gary Hamel have changed that way organisations strive for competitive advantage. Their ideas on competitive strategy and management innovation are now seen as essential transformational tools for businesses looking to deliver profitable growth for its stakeholders. Michael E. Porter is a leading authority on competitive strategy‚ the competitiveness and economic development of nations‚ states‚ and regions‚ and the application of competitive principles to
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2. Does Porter fail to explain how the factor and demand conditions that mould a nation’s corporate strategies‚ business structures‚ and industrial clusters are established? What other theories and evidence might assist such an explanation? Porter explains what factor and demand conditions are‚ but he fails to explain how they are established. He defines then‚ and explains them in detail‚ but lack the most important aspect‚ which is how they are established. A theory like this is not of much
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of IVC in competition is the “value chain” by Michael E. Porter. A business is profitable if the value it creates exceeds the cost of performing the value activities. To gain competitive advantage over its rivals‚ a company must either perform these activities at a lower cost or perform them in a way that leads to differentiation to charge premium price. (Porters Generic theory of Differentiation‚ Cost Leadership‚ Focus Strategy) Porters Value Chain Analysis (VCA) helps to identify sources of Competitive
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Michael E. Porter. This concept divides a company’s activities into the technologically and economically distinct activities it performs to do business. We call these as “value activities.” A business is profitable if the value it creates exceeds the cost of performing the value activities. To gain competitive advantage over its rivals‚ a company must either perform these activities at a lower cost or perform them in a way that leads to differentiation to charge premium price. (Porters Generic theory
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References: Costco (2010). Why Become a Member. Gilmartin‚ B. (2014). Costco Earnings Preview: Superb Execution‚ Perennially Overvalued Mascarenhas‚ O Porter‚ M. E.‚ & Millar‚ V. E. (1985). How information gives you competitive advantage.
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