FIVE COMPETITIVE FORCES OF INDUSTRY Michael Porter has postulated that the intensity of competition in an industry is determined by its underlying economic structure1. And he further contends as we saw above‚ that the industry structure is shaped by five basic competitive forces: the threat of new entrances into the industry‚ the bargaining power of suppliers to the industry‚ the threat of substitute products or services‚ the bargaining power of customers or buyers‚ and the Rivalry among Existing
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Chapter Two – Closing Case: Five Forces in the Beauty Products Industry In the beauty product industry incumbents such as L’Oreal‚ Nivea‚ Shiseido‚ Elizabeth Arden‚ and Max Factor are leaders of the industry. Incumbents have remarkably long staying power in this industry. Their support comes from the richer‚ aging baby boomers in developed economies and an increasingly more influent middle class in emerging economies. The industry leader L’Oreal was founded in 1909 and other companies
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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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Introduction This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. In spite of restrictions and awareness campaigning runned by the government‚ these companies are trying to grow through acquisitions‚ alliances and closures within the industry. Companies are concentrating on expanding their existence into other markets. Some other companies are concentrating on innovation‚ branding. Moreover they are fighting on cost
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BHS0027: Strategic Management Hong Kong 2013/14 Written Individual report Task Using Porter’s Generis Strategies model‚ critically analyse IKEA’s competitive strategy. You must also recommend a course of action or direction that the organisation should take. Use the case study as a starting point and source relevant company information from their web site and other suitable sources. Style: report Word limit: 2500 words Deadline: 19 August 2013 Approximate weighting of marks and suggested structure:
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EXHIBIT 1 Porter’s 5 Forces: Computer Industry Threat of New Entrants: Medium With the standardization of most of the computer components‚ it becomes easy for customers to change their laptops. This leads to a moderate customer switching cost. The availability of direct-to-customer service and retailers‚ it becomes easy for customers to find their desired product as well as for companies to provide their products in less time and with reduced cost. If any new player wants to enter into the market
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Billabong was founded in the Gold Coast‚ Queensland‚ Australia in 1973 by Gordon Merchant. At first‚ he designed and created the board shorts at his home and then sold them to local surf shops. Surfers soon realized the durability of Merchant’s board shorts that was the result of his triple-stitching technique. Merchant understood that his company needed to expand to achieve success‚ so Billabong started to sponsor contests—these contests increased the public’s awareness of Merchant’s products and
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Billabong’s Recent Nose Dive Billabong is a popular Australian company whose business includes surf‚ skate‚ snow‚ sports apparel‚ accessories‚ and hardware. The company started in 1973 in Gold Coast‚ Queensland‚ Australia and through their four decades of business they have established brands such as Element‚ Von Zipper‚ Honolua Surf Company‚ Kustom‚ Palmers Surf‚ Xcel‚ Tigerlily‚ Sector 9‚ DaKine‚ and RVCA brand names. In 2008‚ the company witnessed peaking numbers with profits of $158 million
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reinforcing ‘Government’ as the Sixth Force Lecturer Name: Ms. Arual Dewi A/P P. Arunachalam Student Name Student ID Tutorial Group Thanneermalayan Narayanan 09018003 5 TABLE OF CONTENTS PAGE ASSIGNMENT 1: The Need for reinforcing ‘Government’ as the Sixth Force……………….2-9 References……………………………………………………………
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FIRM As per the judicial obligation‚ Billabong International Limited appointed Pricewaterhouse Coopers as their audit firm. PWC is a London based multinational company known for its Professional Services. As an audit firm for Billabong‚ Pricewaterhouse reviews the company’s accounting statements and determines the company’s financial position. The lead auditor for Billabong is Steven Bosiljevac. Steven Bosiljevac is a partner at Pricewaterhouse Coopers. (Billabong Financial Report‚ 2013: 43)
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