Group G is comprised of 5 members with their student IDs listed. The document then summarizes Porter's five forces model and analyzes each force as it applies to an industry:
1. Risk of entry is affected by brand loyalty, economies of scale, and government regulations that make entering difficult.
2. Rivalry depends on industry structure, demand conditions, and exit barriers that keep competitors in the market.
3. Buyer power is greatest when there are few buyers and many suppliers, and buyers can play suppliers against each other.
4. Supplier power is highest when suppliers' products are differentiated and important to the industry.
5. Substitute threats are stronger when substitutes are
Cost Leadership / Low-cost Business Strategy:
A cost leadership strategy is an integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to that of competitors, with features that are acceptable to customers.
Cost Leadership / Low-cost Business Strategy:
A cost leadership strategy is an integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to that of competitors, with features that are acceptable to customers.
Porters 5 forces - a simple explanationBrent Spilkin
Porters Five forces - a simple explanation
Porter five forces analysis is a framework to analyse level of competition within an industry and business strategy development.
It draws upon industrial organisation (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market
Porter's Five Forces Model - Analysing Competitontutor2u
Porter's Five Forces model is a popular analytical framework for assessing the nature of competition in a market. This presentation provides an overview of the model.
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
Corporate level strategies - strategic management - Manu Melwin Joymanumelwin
Market penetration involves trying to gain additional share of a firm’s existing markets using existing products. Often firms will rely on advertising to attract new customers with existing markets.
Porters 5 forces - a simple explanationBrent Spilkin
Porters Five forces - a simple explanation
Porter five forces analysis is a framework to analyse level of competition within an industry and business strategy development.
It draws upon industrial organisation (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market
Porter's Five Forces Model - Analysing Competitontutor2u
Porter's Five Forces model is a popular analytical framework for assessing the nature of competition in a market. This presentation provides an overview of the model.
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
Corporate level strategies - strategic management - Manu Melwin Joymanumelwin
Market penetration involves trying to gain additional share of a firm’s existing markets using existing products. Often firms will rely on advertising to attract new customers with existing markets.
Save time and make the difference by using Porter’s Five Forces Templates in editable PowerPoint slides created by former Deloitte management consultants and talented designers.
This strategy tool will help you to assess the attractiveness of an industry or a market by analyzing the forces acting upon it.
Introduction to Oil and Gas Industry from Upstream (Exploration & Production), Midstream (Transportation & Storage), to Downstream (Refining, Petrochemical, & Marketing)
Michael porter's five force model ( porter's competitive enviroment analysis)Suleyman Ally
porters five forces, advantages and its limitation. features of attractive and unattractive competitive enviroment, cirmustances that couses higher supplier and customer bargaining power,
Strategic Management Theory An Integrated Approach 9th Edition Hill Test BankRamseyRamseys
Full download : http://alibabadownload.com/product/strategic-management-theory-an-integrated-approach-9th-edition-hill-test-bank/ Strategic Management Theory An Integrated Approach 9th Edition Hill Test Bank
The strategic planning process requires considerable thought and planning on the part of a company’s upper-level management. Before settling on a plan of action and then determining how to strategically implement it, executives may consider many possible options.
1. Group G
Group Member ID
Kazi Tanvirul Islam B040006
S.M. Zayed Siraj B040016
Jannatul Ferdows B040017
Md. Tajmilur Rahman B040036
Umme Kulsum B020050
2. Porter five forces model
1. Risk of entry by potential competitors
2. Rivalry among Established Companies
3. The Bargaining Power of Buyers
4. The Bargaining Power of Suppliers
5. Threat of Substitutes
3. Risk of entry by potential competitors
Companies that are not currently competing in an industry but have the capability to do so if
they choose are potential competitors. Incumbent companies are those already operating in
an industry, try to discourage the potential competitors from entering the industry.
Whether potential companies will come into market or not that depend on barriers to entry.
Barriers to entry are the factors that make it costly for companies to entry an industry.
The following are barriers to entry:-
a) Brand loyalty:- Brand loyalty is when consumers have particular preference for products from
firms that are already established. Not switch one brand to another.
b) Absolute Cost Advantage:- Superior production process.
Control of particular inputs required for production.
Access to cheaper funds.
c) Economic of Scale:- Economies of scale occurs when a firms expands its outputs to make unit
costs fall. Produce more cost is low.
d) Switch cost:- Switching costs that cost customer's their time, energy, and money to stop using
those products from an established company to use products from new entrants is considered
high switching cost.
e) Government regulation:
4. Rivalry among Established Companies
The extent of rivalry among established companies is a function of three factors:-
a) Industry Competitive Structure
Fragmented- restaurant, Health club.
Consolidated- aerospace, automobiles.
b) Demand conditions; growing demand is opportunities and declining demand is threat.
c) Height of exit barriers;
Investment in plant and equipment that have no alternative uses and can not be sold
off.
High fixed cost of exit.
Emotional attachment to an industry.
Economic dependence on the industry as there is no diversification.
5. The Bargaining Power of Buyers
Buyers are the most powerful in the following circumstances:-
a) When the supply industry is composed of many small companies and buyer are few in
number and large.
b) When the buyers purchases large quantities.
c) When the supply industry depends on buyers for a large percentage of its total orders.
d) When the buyer can switch orders between supply companies at low cost, thereby playing
off companies against each other to force down prices.
e) When it economically feasible for the buyers to purchase the input from several companies
at once.
f) When the buyers can use the threat to supply their own needs through vertical integration as
a device for down prices.
6. The Bargaining Power of Suppliers
Suppliers are the most powerful in the following circumstances:-
a) When the product that supplier sell has few substitute and important to the company.
b) When the company’s industry is not important customer to the suppliers.
c) When suppliers respective product is differentiated to such an extent that it is costly for a
company to switch from one suppliers to another.
d) When, to rise price, suppliers can use the threat of vertically integrating forward into the
industry and computing directly with the company.
e) When buying companies cannot use the threat of vertically integrating backward and
supplying their own need as a means of reducing input prices.
7. Threat of Substitutes
• All firms in and industry compete with other industries offering substitute products or services.
Steel producers are in competition with aluminum producers. Sugar producers are in competition
with the firms which are introducing sugar-free products. The competitive force of closely-related
substitute products impact sellers in several ways.
• First, the presence of readily available and competitively priced substitutes places a ceiling on the
prices companies in and industry can afford to charge without giving customers an incentive to
switch to substitutes and thus eroding their own market position.
• Another determinant of whether substitutes are a strong or weak competitive force is whether it is
difficult or costly for customers to switch to substitutes to substitutes. Typical switching costs
include, the cost of purchasing additional equipment, employees retraining costs, the time and
costs to test the quality for technical help needed to make the changeover.
• As a rule, the lower the price of substitutes and the higher the quality and performance of
substitutes, the more intense are the competitive pressures posed by substitute products.