According to Michael Porter‚ an industry is affected by certain forces‚ which enable them to attain different levels of profitability. These five forces help managers analyze the industry to gain a better understanding and develop a more effective business strategy. In the discount retailing industry‚ it is important to consider the following when considering entry: Threat of New Entrants: Four major competitors‚ WalMart‚ Kmart‚ Target and Costco Wholesale dominate the discount retail industry
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STUDENT HAND-OUT WORKSHEET ON INDUSTRY STRUCTURE This worksheet was developed to apply Porter’s Five Forces analysis to an industry. For each of the factors listed below‚ place an “X” in the appropriate column (Yes‚ No or Moderate). Once you have completed the analysis of the five forces‚ compute the number of factors for each category‚ and write down the number for the overall analysis. 1. Threat of entrants: |+ factors (favorable to industry)
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Five Forces Analysis of Wal-Mart Industry Threat of Competitors: The biggest threat in the US Grocery/Discount Retailer industry is competition. In particular‚ the main players are Wal-Mart‚ Kmart and Target. These firms also face competition from wholesalers such as BJ’s and Costco. Wal-Mart‚ as the industry leader‚ has adopted a cost leadership generic strategy. In the past‚ most firms have not been able to match Wal-Mart’s “everyday low prices.” The problem is that Wal-Mart’s barrier to entry
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Five Forces Analysis of PC Industry Threats of Entry The threats of new entrants in the PC industry are low in the U.S. market. The advanced technology is required to make and design PC. The US PC market was dominated by a few big names in year 2007‚ for example HP‚ Dell‚ Apple‚ and they have their own differentiate products. It is thus hard for new competitor to break into the established brand and customer loyalty. Each firm has contract or has built tight relationship with its suppliers
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HOMEWORK Subject: Strategy Formulation and Implementation Name: VõYếnNhi ID: BABAIU12157 Generally‚ the case of “The five competitive forces that shape strategy” is a constructive‚ thought article and it is valid in the field of planning strategy of a business in a competitive environment. As the name of it‚ the article of Michael E. Porter clarifies five forces that can form the strategy of an organization based on the perspective of an incumbent‚ or a company already present in the industry. They
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help ensure their success. TABLE OF CONTENTS Industry Analysis 3 Porters Five Forces Analysis 4 The Threat of New Entrants 4 The Bargaining Power of Customers 5 The Bargaining Power of Suppliers 5 The Availability of Substitute Products 5 Jockeying for Position Among Industry Rivals 6
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Porter’s Five Forces On Automobile Industry Threats of new entrants: Automobile industry is very specific industry‚ thus it has higher level of entry barriers. For an example Factory facilities‚ machinery‚ labor‚ technology are heavily involved. So following factors are determine the barriers of entry to the industry: Bargaining Power of buyers affects industry profitability by their ability to hold out for lower price‚ higher quality‚ and better service. In automobile industry the bargaining
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some big company and corporation in electronic industry and also big competitors of Sony such as Koninklijke Philips‚ Panasonic Corporation‚ and Sony electric. Furthermore‚ Apple is also a big competitor for Sony in making smartphone nowadays. Five Forces. Barrier to Entry: high Buyer Power: high Substitutes: high Supplier Power: low Internal Rivalry: high The electronics and game has high barrier to entry to the market nowadays. Internal Rivalry Sony Corporation operates in many industries
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Five Forces model to analyze 1. Use Michael Porter’s Five Forces model to analyze the competitive environment for easyJet. easyJet being a 100% direct sell service‚ had main focus on the internet marketing. Following Southwest Airlines model‚ easyJet started trend “no frill” services‚ which helped in keeping costs down. easyJet provided first come‚ first service with equal service for all. Therefore the target customers were leisure and casual travelers with no service for business class travelers
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AMAZON.COM PORTER’S FIVE FORCES MODEL Bargaining power of suppliers The power of suppliers is medium-high. Suppliers have a medium power in the sense that much of Amazon’s own inventory could be obtained from numerous suppliers across the country or even across the globe. Suppliers have a higher power given that Amazon.com cannot compete with suppliers. Amazon.com does not run any production plants. Bargaining power of buyers The bargaining power of buyers is high. Amazon.com’s customers
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