Michael Porter’s Factor 1) Threat of New Entrants - The easier it is for new companies to enter the industry‚ the more cut-throat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: Existing loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources Government restrictions or legislation Entry protection (patents‚ rights‚ etc.)
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Situation Analysis 2.2 Industry Analysis The industry environment refers to a set of factors that would have a direct influence on a firm’s competitive action or responses. These factors were also known as Porter’s Five Forces Model is a useful strategic tool to evaluate the opportunities and threats for the oil and gas industry which includes the threat of new entrants‚ bargaining power of suppliers‚ bargaining power of buyers‚ threat of substitute products and intensity of rivalry among competitors
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This paper addresses the use of Porter’s Five Forces model and how it can benefit Broadway Cafe by identifying and analyzing the effect of these forces on its business. The benefits include improved decision making‚ faster time to market‚ better productivity‚ improved competitive advantage‚ more profits and greater customer satisfaction. It also helps in achieving operational excellence. Porter’s Five Forces Model Threat of Entrants Porter’s First force is the threat of Potential Entrants. Statistics
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Five forces : New Entry (Low to Medium) * New entrants will have to deal with high and large fixed cost * incentive because of profitability of zara * newest fashion at an inexpensive price * Zara as part of the Spanish Inditex Group‚ can benefit from the micro-economic concept of the Economies of Scale. Hence it gains cost advantages as production (scale) increases * Zara is operating within the market of “fast fashion” hence size as well as economic efficiency matter. Inditex’s
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Sonia’s smoothies 1) Nick calculated that of 200 customers who completed the questionnaire at the rock festival‚ the mean age was 23. The age distribution conformed to a curve of normal distribution with a standard deviation of 5. Calculate the number of customers aged 33 and over who featured in Sonia’s survey (33-23)÷5 = 2 2% of 200= 4 Answer= 4 2) With reference to the report on the UK smoothie market (appendix 2) analyse two limitations of using secondary sources as the
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1.3 Conclusion of primary research Analysis of primary research 2.0 Introduction 2.1 Profile of manager and business 2.2 Analysis of questionnaire finding 2.3 Conclusion Theory regarding porters 5 forces framework 3.0 Introduction 3.1 Porters five forces diagram 3.2 Analysis of Porters five forces 3.3 Past analysis of Ryanair 3.4 Conclusion Application of SWOT analysis 4.0 Introduction 4.1 SWOT analysis for Ryanair 4.2 SWOT analysis for Aerlingus 4.3 Conclusion Appendices
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Porter’s Five Forces 1 In talking strategy for any company‚ Porter’s Five Forces Model is likely to come up. It has served as a strategic planning guideline for years. If a company is just starting out‚ they would have to analyze the model and apply it to themselves from every aspect. If a company is well established‚ the model can serve as points that need to constantly be revisited. In going global‚ the tool becomes invaluable. It still only serves as a guideline‚ but it delivers significant
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The UK Inbound Tourism IndustryIntroduction:Tourism is seventh of the largest industries in the UK‚ worth £74 billion to the UK economy. There are currently 2.1 million jobs in the industry. Within the inbound Tourism to the UK‚ 30 million overseas visitors who came in 2005 spent £14 billion on holidays 2005 was a record year for UK inbound tourism both in terms of volume and value. The UK ranks fifth in when compared international tourism earnings league behind the USA‚ Spain‚ France and Italy.
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Force 4: Buyer Power Buyer power is one of the two horizontal forces that influence the appropriation of the value created by an industry (refer to the diagram). The most important determinants of buyer power are the size and the concentration of customers. Other factors are the extent to which the buyers are informed and the concentration or differentiation of the competitors. Kippenberger (1998) states that it is often useful to distinguish potential buyer power from the buyer’s willingness
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PORTER’S FIVE FORCES MODEL Porters five forces‚ as a powerful analysis tool‚ enables managers in corporations to analyze the current situation of their industry in a structured‚ easy-to-understand way. From a strategic management perspective it is useful for managers in any organization in the same industry or sectors to understand the five competitive forces acting on and between organizations in the same industry and or sector since this will determine the attractiveness of that industry and the
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