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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1.) What is the role of centralized government in Chinese history? Why is the Dynastic cycle a critical component of Chinese society? China had a large population. A strong centralized government was needed to keep order. With a strong government China was able to expand its population. The dynastic cycle was a critical component of Chinese society because once one dynasty grew weak; a new dynasty could come in and start fresh to fix the issues. The new dynasty would start out strong and develop
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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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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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Your research on China is interesting. It is true that China is a big player in the global market and a major importer and exporter of the United States. A bilateral relationship between the two countries is beneficial as United States and China are dependent on each other for many things. Another dimension of culture that is integrated in business is the gender inequality in China. Despite the Chinese law that indicates equal rights for male and female in every aspect of life‚ gender discriminations
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For the external analysis I will do a Porter 5-Force analysis on the Micro environment of JYSK on the Chinese market. First I want to have a look at the Industry competitors‚ so the rivalry. If we take a look on the Chinese market‚ we can see that there is already a fierce competition going on the market. Domestic and foreign retailers like IKEA or Wal-Mart have already successful penetrated the market. The number will increase constantly‚ because everybody wants a piece of the cake. If we look
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only encouraged; it is a way of life. The highly developed education systems in China give students a significant advantage in a globalized economy because of their cultural views‚ a wide variety of studied subjects‚ and the competitive nature of society. Culture in China is a huge factor contributing to the education of their students. A big part of their culture is wealth. Although the cost of education in China is negligible by Western standards‚ when you consider the country’s GDP and the
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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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Chandana Chakraborty on INDIAN SOFTWARE INDUSTRY : STRUCTURE‚ TRENDS AND CONSTRAINTS published in Journal of Services Research‚ Volume1‚ November 2(October 2001) 4. "What Is Strategy?" by Michael E. Porter‚ Harvard Business Review‚ 1. Volume 74‚ Number 6‚ pp 61 - 78. 5. “Competitive Strategy”‚ By Michael E. Porter Free Press‚ 1980 3. http://www.indianembassy.org/indiainfo/india_it.htm 4. http://www.thehindubusinessline.com 5. http://www.dnb.co.in/TopIT/overview.asp 6. http://in.news.yahoo.com/43/20080727/864/ttc-software-industry-revenuegrowth-dip
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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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