Porter's 5 Forces

In: Business and Management

Submitted By ahben6
Words 623
Pages 3
Apart from a good one-page executive summary, which, by the way, earns you bonus marks, three other things are very important too. The first is your charts and graphs. Charts and graphs are visual aids to help you convey your point across more clearly, so you need to respect them. One sign of respect is to give your charts and graphs proper names (eg Chart 1: Historical price for OCBC) and to refer to them in your report by their names. I'm a good friend of charts and graphs, and any group that does not pay them respect will pay for it. Another problem with charts and graphs is their formatting and selection. There are coarsely made charts, and there are meticulously constructed ones where the formatting is consistent across the report. Again, this is a question of effort and professionalism, which will be duly rewarded if done properly. Finally, charts and graphs are there to help you, but not do the job that you are suppose to do. For every chart or graph that you put in, I expect you to tell me a little about it. For example, if you include a pie chart that illustrates the proportion of profit for each of its division, and says ‘the chart illustrates the proportion of income from various division’, that is call hand waving. Instead, you should go on and discuss what each of these divisions are and who contributed the most, and why do you think they are the largest contributor, and who do you think, following your analysis, will grow the most in the future. Build on your charts to tell a story or make a point, or several point; don’t waste it by simply hand waving. The other important thing is your font and space formatting. If you have inconsistent fonts, that is a sign of plagiarism. If your font sizes are different, that is another sign. If you have a sentence with unexplained space between them, like this, that is a sign that you’ve copied something from a PDF…...

Similar Documents

Porter’s 5 Forces & the Russian Commercial Banking Sector and Wealth Management Industry

...PORTER’S 5 FORCES & THE RUSSIAN COMMERCIAL BANKING SECTOR AND WEALTH MANAGEMENT INDUSTRY Today’s Russian Federation is characterized by low competitiveness in the context of firm strategy and rivalry, a supportive infrastructure for industries, a mixed bag when factor or input conditions are assessed (human resources, capital resources physical infrastructure, etc.…), and a polarized consumer base, where some hold most of the wealth, while the rest are quite average or below the poverty line. It is an overachieving country, with high income compared to low competitive index. In Porter’s Diamond-E Framework, Russia is in the Efficiency-Driven Stage; it is an investment-driven economy. This is not congruent with the general analysis of the banking industry worldwide, when looking at it through Porter’s Five Forces Model. Applying the model to this sector yields high barriers of entry, a moderate power of suppliers in terms of their ability to lure away human capital, increased power of buyers in terms of switching costs, many substitutes, and a high competitive rivalry. To better assess the entry of The Royal Bank of Canada (RBC) into the Russian market, one must also consider Canada-Russian relations. Being the two largest Artic countries, Canada and Russia share many common opportunities and challenges. The countries have a long history of cooperation on issues such as science, energy and environmental protection, and in 2012, promising areas of......

Words: 1129 - Pages: 5

Nokia Porter's 5 Forces

...PORTER’S FIVE FORCES. BUYER’S POWER: - Nokia had been edged out by rivals in the smartphone market who launched new and better products which resulted to Customers shifting to android phones which resulted to Nokia reducing their selling price in order to increase the rate of sales but they lost in the rate of profitability and consumer loyalty. The customer power is high; nokia is focusing on the smartphone segment because it has the biggest margin in the industry, the consumers are increasing despite the high rate of recession, product and price differentiation is getting lower which is resulting in the difficulty of buyers making a decision about the particular phone they will want to buy. Most consumers get phones on contract and switching from one phone to another is difficult and expensive and with other brands leading in the smartphone industry, it will be difficult for consumers to switch from Samsung or iPhone to Nokia. Most of the other brands own distribution stores while nokia doesn’t really have enough distribution channels, making it difficult for buyers to reach their product easily in some countries. COMPETITIVE RIVALRY: - Competitors were quickly catching up with Nokia’s Symbian platform. As the Symbian OS was not optimized for touchscreen devices, users were turning to the Android, Blackberry OS, and Apple’s iOS. Nokia struggled to keep pace with rivals such as Apple, Samsung, Google, and RIM in the high-end smartphone market. Nokia is not only competing......

Words: 833 - Pages: 4

Porter's Five Forces

...de/documents/PreibuschS_FleckensteinM_Amazon.pdf Unknown (April 11, 2011). Week 6&7- Amazon and Porter’s 5 forces. Retrieved from http://nikamalfard.wordpress.com/2011/04/22/week-67-amazon-and-porter's-5-forces AppleInsider Staff (August 30, 2012). Amazon says Kindle Fire takes 22% of US tablet market, won't disclose sales. Retrieved from http://appleinsider.com/articles/12/08/30/amazon_says_kindle_fire_takes_22_of_us_tablet_market_wont_disclose_sales Rao, Leena (September 13, 2012). Amazon, Apple Top Mobile Retail Customer Satisfaction. Retrieved from http://techcrunch.com/2012/09/13/amazon-apple-top-mobile-retail-customer-satisfaction/  Shatzkin, Mike (December 11, 2011). Competing with Amazon is not an easy thing to do. http://www.idealog.com/blog/competing-with-amazon-is-not-an-easy-thing-to-do/ Qineqt (Seeking Alpha) (July 20, 2012). Amazon's Competitive Advantage, Growth Opportunities Make It A Buy. http://seekingalpha.com/article/735201-amazon-s-competitive-advantage-growth-opportunities-make-it-a-buy PRNewswire/comScore, Inc. (April 26, 2012). Tablet Competition Heats Up: Kindle Fire Captures more than Half of Android Tablet Market. Retrieved from http://www.prnewswire.com/news-releases/tablet-competition-heats-up-kindle-fire-captures-more-than-half-of-android-tablet-market-149097995.html ----------------------- Porter’s Five Competitive Forces On Amazon [pic] [pic]...

Words: 1247 - Pages: 5

Samsung Porter's 5 Forces

...industry cycle picks up, is raising its capital investment in this division. As peers cut back this is a bold move that signals a strong confidence in the eventual upturn of the memory market. With a brand value now greater than Sony, it is clear that Samsung’s strategy of delivering high quality products with an emphasis on design is paying off and the company is confident of its future performance. Time and again Samsung has proved it is able to look into the future and create what’s just around the corner for the rest of us PORTER’S FIVE FORCES MODEL: FIVE COMPETITVE FORCES SHAPE FATE OF FIRM: A company needed as many as possible to neutralize the five forces to generate a well competitive advantage. Porter's forces (Porter, 1998) are used basically for the attraction of industry and searches sources of its competition. These forces are dependent on each other and Samsung like industries must know the connection between these forces. * Traditional competitors * New market entrants * Substitute products and services * Customers * Suppliers * Traditional competitors: All firms share market space with competitors who are continuously devising new products, services, efficiencies, switching cost. Samsung is also facing competitors such as Apple, Sony, Blackberry etc in the market and they are proving to be a tough competitor. In order to maintain his status in the market Samsung has to produce better and better technology......

Words: 890 - Pages: 4

Porter's Five Forces

...Introduction The porter forces model was first developed in 1979 by Michael .F. Porter of the Harvard as structure for assessing and evaluating the competitive position and power of an organization, the model is grounded on the concept that there are five forces which ascertain the competitive intensity of the market (Porter, 2008). Figure 1.1 shows a diagram of the five forces model, (Flesicher, 2007) Porter’s five forces model is quite useful and it provides a number of benefits , its most contribution is that it's a relevant tool to help organizations find the fundamental structuring components of their given business operation. It is the map showing where the company is and where they hope or want to be (Flesicher, 2007).Further more Schmidt (p.82, 2010) adds that “The model help to identify where the power is in the present business situation, This is important both in understanding the might of a company’s current competitive situation and the power of a position that the company wants to move to.”By understanding where the intensity is, the model can be used to identify the areas of strength, to improve failings and prevent mistakes; also strategic analysts often use the theory to know if new products or services are potentially profitable (Roy, 2011). The five forces model is a tool for analysising the competitive environment as Henry (p.70, 2008) states that “It allows an organization to determine the attractiveness or profit potential of a given market by...

Words: 1358 - Pages: 6

Porter's 5 Forces Model of Inditex Group

...2.3 Porter’s 5 forces Model 2.3.1 Threat of new entrants The apparel industry has very low entry barriers. Entering the market does not require huge amount of capital. The setup can be as simple as a person selling his own designed apparel online which only required relatively low skills level. In fact, the fashion retailing is a diversified market with numerous single shop retailers, local chain stores, international fashion chain stores, online shop… etc. However, if we focus on the fashion retail chain with economy of scale in production and distribution, that would create significant barrier for entry. Moreover, brand identification and production differentiation also set a barrier for entrance. 2.3.2 Threat of substitute products or services The threat of substitute products in the fashion retailing is very high. Customer can buy another piece of garment in turn satisfying the same need. The competitors can even copy the “hit of the season” easily, customer can find similar products in the market with different price positions. The switching cost on the substitute apparel is also very low. What’s more, many female considered shopping as leisure activities. Retailers also lower the switching cost by providing online platform for shopping which in turn provide price information to customer as well. To retain their customers, fashion brand has put a lot of resource on building their brand and establish the perceived value on their product (i.e. level of......

Words: 609 - Pages: 3

Nestle Porter's 5 Forces

...* What does the model tell you about the nature of competition in the industry? External Analysis (Porter's Five Forces Analysis) Threat of Substitute products (low) Food and beverage market has a long industry chain and big industry span so threat in substitute products is low. Giants such as Wrigley (Mars, Milkway, Snickers and etc), Unilever (Knorr, Cornetto ,Lipton Ice tea and etc) ,Coca Cola, Nestle have similar products to offer to customers. But in Nestle case threat of substitute products is high because of wide range of similar products that can compete directly with Nestlé. For example, Danone led Nestle to decreasing sales in 2009 in European Markets. In order to make a differentiation in the worldwide market Nestle should innovate its products to stay in the market and to go beyond its substitutes. Recent innovation made by Nestle health consciousness and wellness factor that has been introduced in all products of company. Threat of new Entrants (low) The company has been lunched since 1866 which gave Nestle a wide experience in the food and beverage industry. With substantial brand equity and a base of loyal customers Nestlé is at an insignificant risk from entrants. Nestlé has an advantage of holding majority of the share in the market where competition is becoming increasingly fierce in the world today. Although the food and beverage industry is very competitive and is constantly evolving with entrants, small business don’t have much......

Words: 918 - Pages: 4

Coca-Cola Porter's 5 Forces Analysis

...Bui Thi Huong Giang – ID# 442309 Nguyen My Hanh – ID# 442321 Pham Tra My – ID# 442329 PORTER’S FIVE FORCES INDUSTRY ANALYSIS COCA-COLA COMPANY 1. Threat of New Entrants: Medium - Coca-Cola is considered not only a beverage company but also a brand, so they own a significant market share providing Coca-Cola the ability to earn economy of scale that help maintain their total costs at a minimum level, which will create a quite difficult barrier for new beverages to enter the market. - As Coca-Cola has been founded and developed for a very long time, and now their products are considered to be one of the most famous and popular beverages around the world. With a huge number of Coca-Cola loyal customers who are not very likely to try a new brand, it will make things very hard for new businesses to enter the market. - As the prices of products are quite similar, the entrant of new competitors coming into the beverage industry are relatively easy because there is no consumer switching cost, consumers will not have to bear any additional cost when they switch to a new products, which will level the playing field and bring worries to Coca-Cola. 2. Threats of Substitute Products: High - As the prices of beverage products from different companies are at the same level so with the same amount of money customers pay for a Coca-Cola drink, they will have numerous other choices such as: Pepsi, Mountain Dew, 7Up, Dr. Pepper, or other types of drinks like Starbucks,......

Words: 652 - Pages: 3

Porter's 5 Forces

...Porter’s 5 Forces The ability rivalry has worked to enable the English Premier League to become one of the top clubs within the world and Europe, in order to attract the finest players worldwide. Strategy We aim to increase our revenue and profitability by expanding our high growth businesses that leverage our global community and marketing infrastructure. The key elements of our strategy are: * Expand our portfolio of global and regional sponsors: We are well positioned to continue to secure sponsorships with leading brands. Over the last few years, we have implemented a proactive approach to identifying, securing and supporting sponsors. In addition, we are focused on expanding a regional sponsorship model, segmenting new opportunities by product category and territory. As part of this strategy, we have opened an office in Asia and are in the process of opening an office in North America. These are in addition to our London and Manchester offices. * Further develop our retail, merchandising, apparel & product licensing business: We will focus on growing this business on a global basis by increasing our product range and improving distribution through further development of our wholesale, retail and e-commerce channels. Manchester United branded retail locations have opened in Singapore, Macau, India and Thailand, and we plan to expand our global retail footprint over the next several years. In addition, we will also invest to expand our portfolio of......

Words: 3110 - Pages: 13

Porter's 5 Forces Model

...The Porter’s Five Forces Model illustrates how the competitive landscape in an industryis impacted by five prominent forces. These forces are: Supplier power, Threat of new entrants, Buying power, Threat of substitutes, and Rivalry. The degree of rivalry is the center of this model as the other 4 forces branch off of this. Each of the forces influences the nature of competition in the industry. Additionally, organizational strategies are often impacted as companies formulate their strategies in order to respond to the dominant competitive forces in any particular industry. The bargaining power of suppliers is a reversal of the power of buyers. This force can also be described as the market of inputs. The suppliers of raw materials, labor, and expertise services provide industries and have power over industries (Quick MBA, 2010). The bargaining power is in the price for the materials or services provided. Many industries have a plethora of suppliers that offer these things needed, but some don’t. Some industries only have one or two suppliers and those suppliers can put any price on the materials/services they offer. This is one of the bigger forces within the fast casual industry. Although the supplier power is usually weak, it still has a major impact on the industry. Most restaurants within the industry get their food from various butchers, farmers, and packaging companies; they don’t make their own. For example, most restaurants offer meat. There are many suppliers......

Words: 1885 - Pages: 8

Porter's 5-Forces Model

...THE FIVE FORCES INDUSTRY COMPETITORS. Rivalries naturally develop between companies competing in the same market. Competitors use means such as advertising, introducing new products, more attractive customer service and warranties, and price competition to enhance their standing and market share in a specific industry. To Porter, the intensity of this rivalry is the result of factors like equally balanced companies, slow growth within an industry, high fixed costs, lack of product differentiation, overcapacity and price-cutting, diverse competitors, high-stakes investment, and the high risk of industry exit. There are also market entry barriers. PRESSURE FROM SUBSTITUTE PRODUCTS. Substitute products are the natural result of industry competition, but they place a limit on profitability within the industry. A substitute product involves the search for a product that can do the same function as the product the industry already produces. Porter uses the example of security brokers, who increasingly face substitutes in the form of real estate, money-market funds, and insurance. Substitute products take on added importance as their availability increases. BARGAINING POWER OF SUPPLIERS. Suppliers have a great deal of influence over an industry as they affect price increases and product quality. A supplier group exerts even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the......

Words: 1142 - Pages: 5

Nestle Porter's 5 Forces

...Nestle Porter's 5 Forces * What does the model tell you about the nature of competition in the industry? External Analysis (Porter's Five Forces Analysis) Threat of Substitute products (low) Food and beverage market has a long industry chain and big industry span so threat in substitute products is low. Giants such as Wrigley (Mars, Milkway, Snickers and etc), Unilever (Knorr, Cornetto ,Lipton Ice tea and etc) ,Coca Cola, Nestle have similar products to offer to customers. But in Nestle case threat of substitute products is high because of wide range of similar products that can compete directly with Nestlé. For example, Danone led Nestle to decreasing sales in 2009 in European Markets. In order to make a differentiation in the worldwide market Nestle should innovate its products to stay in the market and to go beyond its substitutes. Recent innovation made by Nestle health consciousness and wellness factor that has been introduced in all products of company. Threat of new Entrants (low) The company has been lunched since 1866 which gave Nestle a wide experience in the food and beverage industry. With substantial brand equity and a base of loyal customers Nestlé is at an insignificant risk from entrants. Nestlé has an advantage of holding majority of the share in the market where competition is becoming increasingly fierce in the world today. Although the food and beverage industry is very competitive and is constantly evolving with entrants, small......

Words: 310 - Pages: 2

A Porter's 5 Forces on Industries

...Structural analysis of an industry is a valuable tool that can be used as a primary determinant of a firm's long-term profitability. Understanding the dynamics of competitive forces can provide insight into the attractiveness of an industry and the potential for returns on capital. Michael Porter, a Harvard Business School professor, has developed a framework for understanding an industry's structure. Porter's analysis is widely taught in business schools and commonly used by analysts. Porter's book, Competitive Strategy, provides an excellent, readable resource for understanding the impact of competitive forces on an industry. According to Porter, the five competitive forces affecting an industry are: threat of entry, competitive rivalry, bargaining power of suppliers, threat of substitutes, and the bargaining power of buyers. Let's use the airline industry as an example of how an analyst may interpret the competitive forces that affect an industry. Threat of Entry The threat of new entrants presents the possibility that new firms will enter the industry and diminish industry returns by passing along value to buyers in the form of lower prices and raising the cost of competition. Factors that determine the threat of entry include capital requirements, economies of scale, switching costs, and brand value. In the airline industry, access to capital is plentiful. Banks extend credit to airline carriers, and the debt and equity markets provide alternatives for raising......

Words: 961 - Pages: 4

Mobile Computing Porter's 5 Forces

...Mobile computing has revolutionized the way we do business, shop and communicate. Let’s break down briefly how mobile computing has an effect on each of the Porter’s five forces. 1. Bargaining Power of Suppliers Mobile computing gives suppliers more bargaining power, especially with the integration of social networking. There is variation of services and personalization that is readily available with so much customer input. Considering supplier costs, development is either costly or it isn’t. If the application is extensive, supplier costs (or development costs) can be considerable. The buying industry can hinder the supplying industry in development if buyers are demanding of a more extensive application (features, etc) or are reluctant to use an upgraded version of the service or application. This would influence the costs of development, and lower stance in terms of rivalry. 2. Bargaining Power of Customers As there are many options and avenues for buying online, customers have a lot of buying power in the mobile world. They can rate a product, service or application quickly and share their reviews with virtually anyone. Because there is a great deal of competition, buyers have an upper hand in naming a price. Additionally, there are many avenues to shop or use a service on ther internet, and switching to an alternative site, brand or provider of a service is relatively easy to do. If a buyer does not like the eBay application for instance, they can switch......

Words: 494 - Pages: 2

Porter's 5 Forces and Others

...set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored Cornerstone of Blue Ocean Strategy: 'Value Innovation' A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market Blue Ocean vs. Porter’s 5 forces model The Porter’s Five Forces is focusing more on what makes an organization competitive in existing red markets and it is concerned with the micro-environmental factors affecting businesses within the same industry. Factors such as competitive rivalry, new entrants, buyer power, supplier power, and threat of substitution are factors which when conquered would not necessarily make you as a market leader Porter’s model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. See the following link: http://www.youtube.com/watch?v=V2b99iZviUk Blue Ocean Strategy is a strategy that is undertaken by an organization in a new dimension in which its competitors haven’t ventured into. Hence in essence, the organization creates its own new market......

Words: 445 - Pages: 2