PORTER'S FIVE COMPETITIVE FORCESMethodology 4
Because the subject matter of strategic management is so inherently complex and because each one of us brings his own personal biases to the analysis, it was suggested early on that virtually all case material in the field be analyzed from the perspective of more than one methodology. Profit theory and industrial chains were selected as the first of a number of viable approaches to the analytical process. It would have been equally correct to select the Five Competitive Forces analysis refined by Michael Porter, one of the major figures in the field of strategic management. This methodology addresses the same issues but differs only in the language that they use to describe corporate behavior. The five forces are:
· The threat of new entrants into an industry or a market served by a specific company.
· The bargaining power of suppliers.
· The bargaining power of customers.
· Threat of substitute products or services.
· The intensity of the rivalry among existing firms.
Each of these topics is treated separately in the discussion that follows.
The threat of new entrants
The ease with which firms can enter into a new market or industry is a critical variable in the strategic management process. In some industries the barriers to entry are minimal. In oth...
The representative from the 10th congressional district of Illinois for the U.S. House of Representatives is republican John Porter. Porter has been the representative from this district for the last 11 terms (since the election of 1980). He was born in Evanston, IL on June 1, 1935. Here is where he started on his road to congress.
New entrants might be a threat to the existing businesses because they will diversify the market shares. However, the threat of new entrants depends on its barriers to entry which includes “supply-side economies of scale, demand side benefits of scale, customer switching cost, capital requirements, and incumbency advantages independent of size, unequal access to distribution, and restrictive government policy”. Some industries are easy to enter such as coffee shop because it requires less capital and restrictions compare to others, such as airline company where requires a lot more capital to
Any time, there was an interesting case, we would discuss that during our lunch hour with other providers as well as psychologist in the clinic, which helped to get their input and analysis in providing comprehensive care to our patients considering their psychosocial, physical, cultural, economic, and environments factors. In addition, the knowledge from different modules, assignments, iHuman, grand rounds presentations, professor feedback, MedU cases also helped to build my critical thinking
Finally, why is there’s a rock cycle. The rock cycle helps us understand the origin of igneous, sedimentary, and metamorphic rocks. It allow us to see each type and how they are linked to the others by processes that act upon and within the planet. This cycle is consider useful overview of physical geology. Also, it is vital part of how the earth is changing constantly and dynamically. Rocks do not stay the same, they are always changing. They are always changing due to never ending rock cycle.
The article, What is Strategy?, was written in 2010 by Alan Murray. The author explains Michael Porter’s five competitive forces and how they affect your product or service’s strategic positioning in today’s competitive market. Consequently, knowing how to employ these five forces advantageously is critical to marketing a profitable product or service. Five forces analysis can help businesses to comprehend the variables affecting a ventures chance for success. In turn, this determines whether or not to increase capacity in an industry and to design competitive strategies. This can be done by recognizing barriers to entry, threats of substitution, the bargaining power of buyers, the bargaining power of suppliers,
In reference with the stakeholder hypothesis, as per moral contemplations, the meaning of stakeholders ought to be isolated into two classifications; that is one
What makes a person happier than another person and is there a purpose in studying this? “A Balanced Psychology And A Full Life” by Seligman, Parks, and Steen, brings focus to the new subject of positive psychology and the possibilities that it may hold in creating a more balanced, happy life for people. Many studies and treatments have been made in regards to mental illnesses and unhappiness, Seligman and his colleagues delve into the idea that just because an individual is not clinically depressed or mentally ill, that does not necessarily mean that they are happy.
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
When it comes to the discussion of positivity and happiness, there are countless theories on how the two subjects are related, and even more notions on how the two emotions are best obtained. However, few people in the study of the topics have done more research and provided more input than Barbara Fredickson and Ed Diener. In their works, “Positivity,” by Fredrickson, and “Positivity and the Construction of Life Satisfaction Judgments: Global Happiness is not the Sum of its Parts,” they expose their respective audiences with similar ideas on positivity and happiness, especially concerning the two emotions as it relates to the individual. We find that Fredrickson’s article contains less research and statistics, and much more opinion, than Diener’s, yet both are connected around a central theme of furthering the discussion on what it truly means to be happy and have a positive attitude on life.
In the first place, there are different kind of decisions which vary from how huge they are and how urgency they are. It not means each kind of decision need the same amount of stakeholder. Take autocratic decision making for example,
By examining the plausibility and the effectiveness of positive education on the community as a whole, researchers implemented a positivity education curriculum study. This positivity education curriculum consisted of the incorporation of skill sets for happiness, coping skills, personal engagement, positive emotion and increased resilience (Seilgman, Ernst, Gillham, Reivich, & Linkins, 2009). The results of this study showed a markedly lower occurrence of depression, in school aged children that participated in the positivity education curriculum (Seilgman, Ernst, Gillham, Reivich, & Linkins,
New entrants to an industry, with a desire to gain market share, will put pressure on prices, costs and capital needed to compete. It can affect the profit potential.
It has been empirically proven that positive emotion is associated with better outcome in many different fields. It can lead to anything from a better social life to a more in depth method of creative thinking. This journal focuses not on the positivity of the emotion itself, but the stability of the positivity. It is important to understand that the variability of positive emotions can play a large role in a person’s psychological wellbeing. There are two main trains of thought dealing with the relation between positive emotion variability and psychological health. The first states that greater variability leads to a worse psychological state. The second states that greater variability in emotions leads to overall better psychological health.
For assessing the industry profitability, Porter 5 Forces analysis tools were used to analyze one organization evaluation. In this case, the technique were used to analyze 7-Eleven Convenience Store specifically in Malaysia. Porter 5 Forces consists of 5 important area which is Threat of New Entrants, Bargaining Power of customers, Threat of substitute Products and services, Bargaining Power of suppliers, and competitive rivalry within the industry. Theoretically, the more powerful these forces in an industry, the lower its profit potential. The strength of each force differs by industry and changes over time. The competitive advantage that 7-Eleven has using these five forces is it has raised the barrier of entry for other competitors to enter the convenience store market as new competitors will require a huge capital investment in order to implement the information technology in their business in order to be competitive. Also, hypothetically being the first in the market, 7-Eleven could have made contracts with the Malaysia government to not allow other 24-hour convenience stores in the market for a certain time period, such as Astro had done, thus having a monopoly market in the beginning of their operations which will allow them to target a bigger market share.
Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitive and Globalization, Concepts and Cases. In M.Staudt & Stranz (Ed).