milk

1205 Words3 Pages
bulb-icon

Recommended: Challenge of developing strategy

Porter Five Forces
As mentioned earlier above, Porter’s Five Forces is a tool to identify the stronger areas of a business. It assists in realizing the strength of the business in competitive situation and also the strength of the position it intends to move into. This analysis helps in improving the weaknesses, preventing wrong actions and highlights how to get the benefits from the strengths of the business (Mind Tools, 2012).

Unlike general environment, the industry environment or also known as internal environment has impact that is more direct and influences on the firm’s competitiveness. The intensity of industry competition and an industry’s profit potential are functions of five forces of competition such as the threat of new entrants, bargaining power of buyers, bargaining power of suppliers, rivalry among competitors and also threats of substitute products (Hanson, D., Hitt, M., Ireland, R. D., & Hoskisson, R. E., 2011, p.48). The five forces reflect the competitive ability of the company and brings out the image of the overall profitability of the specific market.

Threat of New Entrants

The dairy products industry is large and offers attractive profit. However it is not every player in the industry tend to perform well. Therefore, there is always new entrants try to get involved in the market. Able Food Sdn Bhd itself is also the new entrant that enters China for a share of dairy milk product market. However, it is not easy to enter China dairy milk market as a manufacturer due to the amendment of Industry Policy for the Dairy Products Industry in year 2009 that had stricter the barrier of entry. The stricter policies had restrained the new companies to rise as the criteria to set up a dairy product manufacturer c...

... middle of paper ...

..., the applied thesis in real life practiced might not be achieved so easily. It required a set of professional execution skills by the management crews of the organization. Able Food with Johore Tin had came to the milestone today by standing still over its rivals in Malaysia market. The product differentiation strategy is successful for the products of the company too. Once the company enters China with their dairy milk products, Able Food have the ability to create and deliver the distinguished products, effectiveness and efficiency throughout the business processes. By executing the recommendations given above and make use of the advantages while minimizing the disadvantages in internal and external environment, I am sure Able Food Sdn Bhd will do well with their market penetration in China with their high quality and health promising dairy milk products.

Show More
Related

  • Broadway Café Case Study

    1950 Words  | 4 Pages

    As strategy consultants of McCormick & Associates, we use Porters Five Forces Model as a framework when making a qualitative evaluation of a firm's strategic position (Appendix 1.2). These five forces determine the competitive intensity and therefore attractiveness of a market. These forces affect the ability of a company to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the market place.

    Read More

  • Delta Airlines: Porter's Five Forces Model

    382 Words  | 1 Pages

    Porter’s Five Forces Model is a widely used tool by strategists to develop a competitive analysis, from which they will be able to develop strategies (David, 2013). When looking at Delta, it would be beneficial to look at the external forces this will help top management develop strategies to combat external factors, threats from external factors could potentially harm Delta. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces: 1) Rivalry among competing firms, 2) Potential development of new competitors, 3) Potential development of substitute products, 4) Bargaining power of suppliers, 5) Bargaining power of

    Read More

  • W.L. Gore & Associates Marketing Analysis

    1689 Words  | 4 Pages

    ...not provide the company with opportunities to analyze its internal strengths and weaknesses like that of the SWOT analysis. In short, Porter’s five forces model is related to the threats of the company resulted in the current market scenario.

    Read More

  • Wings And Legs Supply Chain Case Study

    1621 Words  | 4 Pages

    Food industry can be chartered by low margin industry, while along with the shift of power from the manufacturer to the purchaser, the price and demand became flexible, and the product variety increased.

    Read More

  • Porter's Five Force Model In Professional Basketball Industry

    754 Words  | 2 Pages

    I am going to apply Porter’s 5 Force model in “professional basketball Industry” to draw conclusions about major success factors for firms (here teams). For that I am selecting NBA industry.

    Read More

  • What Is Deep Roots Distillery Case Analysis

    730 Words  | 2 Pages

    According to article call “Porter’s Five Forces Model/Strategy Framework” it stated, “The Five Forces Model was developed by Michael E. Porter to help companies assess the nature of an industry’s competitiveness and develop corporate strategies accordingly. “ (Martin, 2014). According to article call “Porter’s Five Forces Model/Strategy Framework” it also stated “The framework allows a business to identify and analyze the important forces that determine the profitability of an industry.” (Martin, 2014). According to article call “Porter’s Five Forces: Analyzing the Competition”. It stated that “

    Read More

  • Michael E. Porter's Five Forces In Pepsi

    1756 Words  | 4 Pages

    Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.

    Read More

  • Michael Porter's Five Forces Model

    1090 Words  | 3 Pages

    Porter 's Five Forces model, it named after Michael E. Porter. He identifies and analyzes five competitive forces that structure every industry, helps to determine an industry 's weaknesses and strengths. There are five components of Porter 's five forces model

    Read More

  • Critical Reflection of the Porter Five Forces Concept

    1474 Words  | 3 Pages

    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.

    Read More

  • Breast Milk

    1792 Words  | 4 Pages

    Breast milk is most commonly known as a source of nutrition for an infant; however it also provides cellular components that help the baby grow and obtain ideal function. Breast milk must contain a variety of cellular components to provide nutrition, immunity, and a variety of other functions. Some of the basic contents of breast milk include proteins, fats, glucose and vitamins to provide nutritional support for the infant. Other components of breast milk include antibodies, growth factors, hormones, and cytokines to provide for all the infants needs as it grows. Out of the cellular components of breast milk such as epithelial cells, lymphocytes, phagocytes, and colostral corpuscles, a variety of stem cells and progenitor cells were found (Indumathi, Dhanasekaran, Rajkumar, & Sudarsanam, 2012).

    Read More

  • Analysis Of Frozen Yogurt

    2162 Words  | 5 Pages

    Porter's five forces analysis is an industry analysis model developed by Michael E. Porter as a tool for developing business strategies to become or stay competitive in an industry or marketplace as per (Braze, 2013).

    Read More

  • Export Based Business Strategy

    1061 Words  | 3 Pages

    If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...

    Read More

  • American Fast Food Case Study

    1558 Words  | 4 Pages

    The product quality and safety of the fast foods in Asia is a major concern threatening the establishment of more fast foods in this countries. The fast food companies are faced with a challenge in meeting the standards in this foreign countries which reduces their confidence across international borders. The Asian economies such as in China have registered slow growth overtime which have led to stagnant incomes from the people (Frost, 2009). This hinders the customer`s purchase powers which in turn prompts them to fall back to making meals at

    Read More

  • Essay On Porter's Five Forces

    727 Words  | 2 Pages

    Porter’s five forces is a framework for analyzing an industry and business strategy development. It looks at forces that determine the competitive intensity of an industry and hence the overall attractiveness of that industry. The configuration of the five forces differs by industry. Understanding the competitive forces and their underlying causes reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition over time.

    Read More

  • Intel Corporation And The Effects Of Economics

    854 Words  | 2 Pages

    A change in any of the forces normally requires a company to re-assess the marketplace. The first force is called bargaining power of customers, the second is the bargaining power of suppliers, the third one is the threat of new entrants, the fourth one is the threat of substitute products, all of which influence the fifth force, the level of competition in an industry.

    Read More

More about milk

Open Document