Porters Five Forces
What are Porters five forces?
Porters five forces is an analysis that highlights the competitive forces that every company is likely to face. It helps in identifying the strengths and the weaknesses a company may be experiencing in the efforts of laying a shaping ground for the success of the business (Garanti & Berzina, 2013). Writers who offer marketing management assignment help at Edudorm essay writing service notes that the five forces comprise of the competition within and outside the industry, power of the suppliers, the power of the customers and the substitute products.
In my analysis about how the market for the athletic footwear, I was able to deduct several concerns about my newly established business. This was done using the porter’s five forces analysis.
Competitive rivalry on Porters five forces
The competition was seen to be so stiff from the dominant companies such as Adidas and Nike. These two companies were found to have too many resources at their disposal. Experts who offer strategic management assignment help at Edudorm essay writing service indicates that the stiffness of the competition has been there considering that there are only very few competitors and so customers have only two choices to choose from. The competition I have faced has made the maintenance costs such as advertising and attracting customers expensive (Garanti & Berzina, 2013).
Bargaining power of suppliers on Porters five forces
In this recent analysis of 2012, it was found that there were 27 producers who manufactured the same products as mine. This ran across 14 countries. Ten of the producers dominated the market by 49 percent of the total supplies of all the manufacturers. The main challenge in this sector is the fact that suppliers share the costs of raw materials which has recently doubled (Garanti & Berzina, 2013).
Bargaining power of the customers on Porters five forces
In this case, the bargaining power of the customers is lower compared to the past years. The bargaining power however is seasonal because during the end of the year, sport shoes are always on demand and so the power of customers is relatively low (Garanti & Berzina, 2013). Authors who offer operations management assignment help at Edudorm essay writing service points that however, low seasons are really challenging because the customers bargain to their satisfaction hence forcing the prices to go down. My wholesale customers have become the stronghold of the customers unit because their bargain lies within certain limits. This makes the assurance of maintenance live even during the low seasons.
Threat of new substitutes on Porters five forces
Sport shoes cannot be substituted by any other type of shoes because of their unique purpose of use. This means that there is no threat of a substitute for my company.
Threat of new entrants in a company on Porters five forces
The cost of stating a footwear industry is very high. Other expenses such as marketing of the products, building a brand image and other expenses are also very high. These costs limit the chances of a new company being opened and so this comes to my favor. The threats to new entrants being introduced are of less impact (Garanti & Berzina, 2013).
Response to Lisa’s Discussion
The summary of the Porters five forces has been properly outlined only that the methods have not been put in details. Tutors who offer business development assignment help at Edudorm essay writing service acknowledges that the strategies in which she shall put to compete with her competitors should also be specific. For instance, she can decide to improve the quality of the services offered and offer them at a low cost. I also think that there are substitute threats that may affect her travelling industry. If she is in the airline, the threat maybe the road transport means which people may prefer because it is cheap.
Response to Michael’s Discussion
The discussion is well detailed and he has incorporated all the elements of the Porters five forces. Indeed the chances of having new entrants would be low and so he would be able to operate in a worry free environment. The issue of competition is a threat that needs to be monitored over time because the cruise line is also growing at a faster rate than before. It is also with great appreciation in the way he has presented the threat of substitute products because cruise services cannot be substituted with anything of a cheaper price. This is a strength he has in his strategy and so other areas of concern can be addressed.
Reference
Garanti, Z., & Zvirbule – Berzina, A. (2013). Regional Cluster Initiatives as A Driving Force For Regional Development. European Integration Studies, (7), 91-101. doi:10.5755/j01.eis.0.7.3677
https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx
