Porter`s 5 forces - 1131 Words

Porter’s Five Forces – Competitor Analysis Michael Porter’s five forces is a model used to explore the environment in which a product or company operates to generate competitive advantage. Porter’s Five forces analysis looks at five key areas mainly the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry (advantage). Michael Porter’s Five Forces: New Entrants Suppliers Industry competitors and extent of rivalry advantage Buyers Substitutes Overview of Porter’s Five Forces The Porter’s Five Forces model is an â€Å"outside looking in† business unit strategy tool that is used to make an analysis of the attractiveness or value of an industry structure. The Competitive†¦show more content†¦If the cost of switching is low, then this poses to be a serious threat. Here are a few factors that can affect the threat of substitutes: †¢ Buyer propensity to substitute †¢ Relative price performance of substitutes †¢ Buyer switching costs †¢ Perceived level of product differentiation †¢ Fad and fashion †¢ Technology change and product innovation The main issue is the similarity of substitutes. For example, if the price of coffee rises substantially, a coffee drinker is likely to switch over to a beverage like tea because the products are so similar. †¢ If substitutes are similar, then it can be viewed in the same light as a new entrant. †¢ Consider technology substitutes (who would have thought that MP3 technology would replace tape CD’s?) Michael Porter’s Factor 5) Competitive Rivalry And last but not least, this describes the intensity of competition between existing firms in an industry. Highly competitive industries generally earn low returns because the cost of competition is high. A highly competitive market might result from: †¢ Many players of about the same size, no dominant firm. †¢ Little differentiation between competitors products and services. †¢ A mature industry with very little growth. †¢ Companies can only grow by stealing customers away from competitors. For many industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivalsShow MoreRelatedPorter s 5 Forces Analysis879 Words   |  4 PagesIndustry Analysis Porter’s 5-Forces Analysis Porter’s 5 Forces Analysis demonstrates that Apple, as a company, has few forces against it. The few risks to the company are essentially negligible, and only offer medium risk. There is no real competitive rivalry to speak of as Apple is exclusive in it’s products, and cannot be re-created at this time. There are substitute goods available, but they do not match all of the specifications of a singular Apple product. Apple has also avoided price-basedRead MorePorter s 5 Forces Analysis Essay2049 Words   |  9 PagesPORTER’S 5 FORCES ANALYSIS: Overall, we found this to be an unattractive industry due to the following factors: Rivalry: The airline industry is filled with over 5000 airlines worldwide creating a considerable amount of competition. Initially, airlines would compete based on price, however, airlines such as the United Arab Emirates have begun to add unique amenities such as showers and Wifi to attract the wealthy, luxury seeking client. Moreover, despite Delta being one of the major airlines, thereRead MorePorter s 5 Forces Model1830 Words   |  8 Pages Porter’s 5-Forces Model identifies and analyzes 5 different competitive forces that shape the industry that a company is competing in and helps them determine weaknesses and strengths, which allows a company to tailor their business strategies to accommodate such problem areas. The model primarily deals with the threat of 1) competition, 2) new entrants, 3) substitutes, 4) power of suppliers, and 5) power of buyers. The threat of competition is pretty self-explanatory because it deals with theRead MoreMarketing Analysis Of Porter s 5 Forces1757 Words   |  8 PagesStudent ID: 1323086 Marketing IB2090 November 27, 2014 Marketing Essay The company has already acquired many companies to successfully extend its products and services offering. Porter’s 5 forces analysis is an important framework that helps understanding both the strength of the current competitive position and factors affecting the strategy development of the company. It tells us where the power dwells in the business situation. However, we will use the PESTLE analysis in this paper becauseRead MoreAnalysis Of Porter s 5 Competitive Forces Strategic Analysis834 Words   |  4 Pagesimpact. Porter’s 5 competitive forces Strategic Analysis Model was described by Michael Porter in 1979. Michael Porter with five structural unit’s characteristic of each industry, it describes a method for the formation of competitive advantage and long-term profitability of the goods, as well as the ways in which the company in the long run may retain its profitability and remain competitive. The nature of the relationships among these factors determining the competitive forces is best presentedRead MorePestel, Porter s 5 Forces, And Swot Analysis1459 Words   |  6 Pagespositioning of the organisation in the market, a situational analysis is conducted on the firm, describing its market and strategic strongholds, as well as weaknesses. For a clear explanation of the organisation’s situation, the PESTEL, Porter’s 5 Forces, and SWOT analysis will be conducted. It will provide a better understanding of the state of the firm, with a consideration of internal and external factors. 2.1 Pestle Analysis please see appendix 1 PESTEL analysis focuses on evaluating the externalRead MoreAnalysis Of Porter s 5 Forces Analysis On Fitness Industry1391 Words   |  6 PagesSingapore as the chosen country. The purpose of this report is to provide the PESTLE analysis on Singapore along with the Porter’s 5 forces analysis on fitness industry in the country, to understand how the company entered the industry’s market. The structure of this report will be as following; company background, country background, PESTLE analysis, Porter’s five forces, strategic recommendations, and the conclusion. COMPANY BACKGROUND Fitness First was born in 1993 in Bournemouth, Southern EnglandRead MorePorters Five Forces Model and Modern Applicability1288 Words   |  6 PagesPorter s Five-force Model and it s continued validity as a strategic management tool Porter s Five-force model is a theoretical guide to understanding the pressures that are felt by an industry, and by analogy, on a company. It can be used in such a way as to allow â€Å"the strategic business manager seeking to develop an edge over rival firms †¦ to better understand the industry context in which the firm operates† (Porter, 1999). The key to any successful (e.g. profitable) business venture is anRead MoreAutomotive Industry And Porter s Five Forces1368 Words   |  6 Pages Automotive Industry and Porter’s Five Forces Shawn D Schubach American Military University Abstract According to the AMA dictionary of Business and Management (2013), Porter’s Five Forces can be described as a â€Å"Framework developed by business professor Michael Porter for analyzing the balance of power within a particular industry and its profitability. The following are the five forces: Bargaining Power of Buyers, Bargaining Power of Suppliers, Competitive Rivalry in the IndustryRead MoreSituational Analysis1169 Words   |  5 Pages(The Times 100, 2009, p. 1). This paper will show the organization’s mission, vision, and values. In addition, this paper will show a consideration of broad environmental forces affecting the firm, and the potential for global expansion. Finally, this paper will show an assessment of industry structure using the Porter Five Forces Model, and a critical assessment of organizational SWOT (Strength, Weaknesses, Opportunities, Threats) factors. Mission, Vision, and Values â€Å"The IKEA vision ‘to create

Great Gatsby Chapter Journals Free Essays

Daisy says these words as she describes to Nick and Jordan her hopes for her young daughter. Daisy is not a fool herself but because of her surroundings intelligent women are not viewed as valuable. Opposite of the older generation, the younger generation enjoys the thoughtless minds of the young and vulnerable women only seeking pleasure and not those that cater to their needs. We will write a custom essay sample on Great Gatsby Chapter Journals or any similar topic only for you Order Now Daisy’s remark is somewhat cynical: while she addresses the social values of her era, she does not seem to mind them. Rather, she describes that she is bored with life and it seems like she implies that a girl can have more fun if she is beautiful and simplistic. Daisy often conforms to the social expectation of the American woman in order to avoid issues. â€Å"He had one of those rare smiles with a quality of eternal reassurance in it, that you may come across four or five times in life. It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. It understood you just as far as you wanted to be understood, believed in you as you would like to believe in yourself. As a part of Nick’s first close examination of Gatsby’s character and appearance he describes that Gatsby’s smile captures both the theatrical quality of Gatsby’s character and his personality. Additionally, it captures the manner in which Gatsby appears to everyone in the outside world. His smile seems to be both an important part of the role in the character. Here, Nick describes Gatsby’s rare focus—he has the ability to make anyone he smiles at feel as though he has chosen that person out of â€Å"the whole external world. † â€Å"With an effort I managed to restrain my incredulous laughter. This is when Gatsby is telling Nick about his life. Nick is trying to restrain himself from laughter because he knows that there is something wrong with what Gatsby is saying. As he continues, Jordan looks like she knows he is lying so when Nick looks at her he feels that it’s all bogus. From what Nick believes, what Gatsby is saying is so in the moment because there isn’t a lot of detail in his story to go on and see if it’s true or not. Gatsby is saying that he lived so well after his family had all died and that he travelled a lot and tha t he had his life pretty much made for him. If that was all true why would he be living in a place like west egg? â€Å"The truth was that Jay Gatsby, of West Egg, Long Island, sprang from his Platonic conception of himself. He was a son of God—a phrase which, if it means anything, means just that—and he must be about His Father’s business, the service of a vast, vulgar, and meretricious beauty. So he invented just the sort of Jay Gatsby that a seventeen year old boy would be likely to invent, and to this conception he was faithful to the end. † When Nick is describing Gatsby he uses this bold comparison between Gatsby and Jesus Christ to illuminate what Gatsby has created himself to be. Jesus is described to be â€Å"faithful to his self-created dream but scornful of the factual truth that finally crushes him and his dream†Ã¢â‚¬â€an appropriate description of Gatsby. Though the comparison between Gatsby and Jesus is not an important event in The Great Gatsby, it is nonetheless a suggestive comparison, as Gatsby transforms himself into the image that he envisioned for himself as a youngster and remains committed to that idea, despite the obstacles that society presents to the fulfillment of his dream. â€Å"’God sees everything,’ repeated Wilson. These were the last words that George Wilson had said before he murdered Gatsby in the end of the chapter. It is showing the madness that came from his realization of the affair and the death of his wife, but maybe this could be indicating that he was the only sane one of all the characters in the end. With the rough life that George had, he did not experience the immorality of society in the 1920s. Th e abuse of money, the new crimes developed, and the other aspects of life were not able to corrupt his lifetyle in the Valley of Ashes. Being a poor man, it was his dream to be rich and make a life for himself and his wife in New York City, but living, isolated, in the Valley of Ashes kept his morals. All of the characters seemed to be blinded by the lifestyle that surrounded them. They were rich, or wanted to be in George’s case, and were blinded by the corruption of society. They could not see what harm they were doing to each other and themselves and started keeping secrets, having affairs and causing unneeded destruction. God was the only one that could see their flaws and lies; he could look past their secrets and see the real people on the inside – the bad people they had become. â€Å"Tom and Gatsby, Daisy and Jordan, and I, were all Westeners, and perhaps we possessed some deficiency in common which made us subtly inadaptable to Eastern life. † Gatsby had the dream of coming back with Daisy. He got money just to achieve his dream, and try to make it work, but it did not work. Gatsby tried to put the values into the wrong place. Gatsby also cared too much about people’s feelings and he made friends to easily. How to cite Great Gatsby Chapter Journals, Papers

Niche Marketing of BMW free essay sample

BMW launched new car named â€Å"New Mini† in 2001 and was targeted for the small growing car segment of the market . It was designed with some resembles to the original Mini. The New Mini car was more luxurious and more valuable for the target market. The aim of this car would help BMW to capitalize on the small car segment. BMW positioned itself as to be for individuals who were not interested in following the crowd. The case also focused on the unique promotional strategy of the new Mini which resulted in higher demand for the mini than the supply. Problem Statement The problem statement of this case is identifying and evaluating the strategies for success of New Mini in targeting and positioning in the niche market About BMW New Mini With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its sights set firmly on the premium sector of the international automobile market. To achieve its aims, the company knows how to deploy its strengths with an efficiency that is unmatched in the automotive industry. From research and development to sales and marketing, BMW Group is committed to the very highest in quality for all its products and services. The companys success to date is proof of this strategys correctness. Profile of MINI Situation Analysis Competitor analysis The direct competitors of BMW’s new MINI include- VW beetle, VW Golf GTI, Fiat 500, BMW 1-Series, Audi A3, Mazda MX-5 (Miata), Mazda 3, Alfa Romeo Mito etc. During the beginning of twenty first century there was a high demand growing for efficient compact cars due to increasing cost of fuel and growing environmental awareness. And the premium compact sector was getting crowded by those above mentioned companies. BMW then introduced the idea of new MINI. The new MINI came up with a balanced synthesis of luxury, trendy, fashionable, fun and excitement with the original mini. Here goes the positioning cue for some other competitors’ brands- BRAND CUES Audi A3 Luxury Fiat 500 Sport Volvo C30 Safety VW Golf-Beetle Practical Dodge Calibeer American BMW MINI Fun Eco-friendly What was the Success/failure reason for new MINI? After the introduction of new MINI the company had a very successful first year in terms of sales. In the U. K alone 30000 cars were sold and in USA popularity grew higher. Now if we consider the reasons for this outstanding success, we may find the following issues- The original mini continued to serve the demand of market for small and sophisticated car from after its introduction in 1960s till the end of 1990s. But there was an untapped market of young class who could have chose the mini if it appears with trendy and fashionable style maintaining the looks of mini. BMW first realized this. Beside, after the emergence of twenty first century, eco-friendly product drew much attention of young generation. BMW MINI also tuned its focus towards eco-friendly mini car. People also became aware of cost of fuel as it got expensive after 1990s. So, BMW came up with the idea of fuel-efficient mini car. In addition to this, BMW’s marketing department used persuasive advertising campaign to promote the brand. The adventurous nature of promotion campaign created hype in the market among young people which in turn brought higher revenues. These are the bottom-line reasons for amazing success of BMW’s new MINI. Goal of BMW’s MINI The goal was to carve out a niche market within the small car segment by appealing to young people who wanted a funky and more stylish alternative to mass-market small cars. Initially, BMW had a success story due to precise tuning with the demand of market. But as time rolls by, BMW would no longer sustain this benefitted position against its competitors if it doesn’t initiate some sensible promotions for its product. To be market leader in the mini car market, BMW MINI need to redefine the mini car concept just it did previously before it gets saturated. Continuous innovation and added features will make it more compatible with the growing demand of customers. It can identify some other niche markets within the mini car segment and craft its marketing tools suitably for these niches. SWOT ANALYSIS OF BMW GROUP A SWOT analysis will be used to see the various Strengths, Weaknesses, Opportunities and Threats of the BMW Group. Strengths: 1. Strong marketing strategy. 2. Customers recognize the strong brand name of BMW Group Company. 3. Strong brand image i. e. BMW, MINI Cooper and Rolls Royce. 4. Every 2 to 3 years BMW introduces its new version of cars i.  e. constant innovation and technology. Weaknesses: 1. There is an increasing number of duplicate spare parts of BMW and MINI Cooper. 2. The manufacturing costs of BMW cars are very high as compared to its competitors. This is also a reason for high pricing of BMW cars. 3. Not a mass market company like Toyota and their volumes are small. Opportunities: 1. There is an opportunity for BMW Group to increase further innovation and technology in their cars due to increasing competition in car industry. 2. BMW Group should also look to make new collaboration with other car manufacturers i.  e. introducing new brands. 3. BMW Group should also look to produce cheaper cars by new innovation and technology. 4. Expansion of the BMW Group in Asia Pacific, Asia, Africa and Australia. Threats: 1. Recession which has affected businesses in every part of the world. 2. To maintain the same level of innovation and performance. 3. The growing competition in the automobile industry i. e. competitors of BMW Group include Mercedes, Audi, Jaguar, Ford, Lexus. 4. The earnings of the BMW Group are Dollar dominated, so the increasing strength of Euro is another threat for the company. Question Answer By focusing on every sub-segment of the luxury car market rather than to pursue every segment of the automobile market, BMW has a more concentrated strategy 1. Explain how BMW might have gone about identifying the niche market opportunity that existed for the New MINI? Ans. BMW identified the sub segments of the customers with very specific needs and characteristics. It identified that some customers seek fun and sports, some customers are fashionable and trendy. Depending on these needs and characteristics, the  new MINI was designed as bigger, safer, and more luxurious than its predecessor without losing the character, fun and excitement of the original mini andcreate a car that was up to date. 2. How can firms like BMW benefit from selling niche market products like the New MINI? By doing more with less-using technological innovations to reduce fuel consumptions, designing and engineering for optimum recyclability, without compromising fun and by offering customi zation BMW can- Enhance the brand loyalty: there are several associations and clubs: Enhance Brand Image: Differentiate its customers from the crowd; Positioned it-self against the other car manufacturer. Increase the sales thus increase the profit margin; Establish the credibility: Streamline marketing costs and efforts: no longer need to advertise to a broad general target and can be narrower and more specific with marketing communications. Qs No 3: The new Mini was priced at 11000 in the UK when it was launched in 2001. Discuss whether BMW should consider increasing price in the future? Price: The prices of BMW Group are based on a differentiated strategy. This means that they charge extra for premium quality. This difference in prices is due to each cars different engine size, gear levels, fuel consumption, sports version Pricing Strategy of BMW: The pricing strategy that the BMW Group adopts is based on several key trends. One most important trend of BMW is labeled as â€Å"premium-tization†. Premium-tization trend of BMW causes polarization of markets. This trend triggers the consumers to demand and pay much higher prices for the perceived quality. BMW should increase price gradually. As MINI is positioned based on 1. Fun 2. Cheeky. 3. Stylish. 4. Customizable. 5. Minimalism.6. Up market positioning relative to old mini Qs No 4: To be successful niche market product must be differentiated. Explain how BMW went about creating the product differentiation needed to ensure the new mini’s success? DIFFERENTIATION STRATEGY: The success of any company regardless of the industry relies on its ability to offer value to the end customers. This value should be recognized by customers , and it should be different from the rest of the competition. The automobile industry consists of numerous brands, which have different strategies to capture the market. Due to the recent global recession phenomenon some brands have strategized to offer low cost vehicles, with exceptional fuel efficiency. This strategy enables these companies to attain monumental sales in the global markets and gives them the ability to capture the growing markets of developing countries. This strategy however is essentially a differentiation strategy, as it does not offer a new or different product. The automobile companies simply enter the fierce market brands competing on the basis of cost leadership. The current lifestyle of the majority of individuals living in the modern society permits them to change their vehicles on a consistent basis. People no longer treat automobiles as a fixed asset, which is a long term investment. Cost however is not the only factor that influences the automobile sales throughout the world. The modern society has grown to become environmentally conscious and high- tech. They demand vehicles which are not only equipped with the latest technological innovations; they also posses environment friendly technology The primary reason for BMWs success in the global market has been its ability to offer innovative automobile vehicles. The company has managed differentiate itself from the rest of the competitors; due to its focus on introducing the latest cutting edge technology to the market, before anyone else. The management at BMW believes that a car must grow and evolve similarly to a human being, and in this process continues advancements in the technological breakthroughs are essential. The company believes that the technological progress is the most viable strategy for sustainable growth