Analysis Of Porter 's Five Forces Of Competition Framework

Michael Porter’s “Five Forces of Competition Theory” is used as a tool to determine level of competiveness within a specific

Porter, M. E. CompetitiveS trategy. (1980): Techniques for Analyzing Industries and Competitors. New York: Free Press.

The threat of substitutes is another force that helps to analyze the external industry. Firms in other industries are offering substitutes products which can be a threat

Michael Porter’s Five Forces Model is a useful tool for such a purpose. The ability of the company to address the Model will be helpful in understanding the strengths of their current market position and their profitability in the industry. This model acts as an analytical tool and examines the competitive environment and identifies the external factors that affect the business. It examines the five forces that drive the industry competition: 1) potential entrants, 2) buyers, 3) suppliers, 4) substitute, and 5) the industry competitors (Lumpkin et al.

The Competitive Analysis section of this marketing strategy plan is devoted to investigating the competition—both current and potential competitors who might enter the market.

One of the most famous frameworks for analyzing competiveness is Porter’s Five Forces model. This model consists of measuring the threat of entry of new competitors, bargaining power of suppliers, bargaining power of customers, measuring the threat of substitution products or services, and determining rivalry among existing firms in the industry (Potter, Rainer & Turban, 2003). This example of KFF that

Competitor analysis is a tool used in marketing as well as strategic management whereby an assessment of the strengths and weaknesses of an organizations both current and potential competitors is done. A useful technique in carrying out a competitor analysis is the construction of a competitor array. This is done through various steps first identification of the industry that the organization wants to venture into. This encompasses the scope and nature of that particular industry (Abahe.co, 2011). The second step involves the determination of competitors for the intended product. The third thing is identifying customers and the benefits they expect from the organization. It is also crucial to find out the key factors of success in the industry. Through this analysis the organization acquires both defensive and offensive strategic context so that it identifies threats and opportunities that are present. Competitor analysis is therefore a very crucial and essential component of an organizations strategy (Entrepreneur Media, Inc 2013). Cellutant electronics, a large corporation is thinking of expanding its market scope and start producing tablets. As part of the strategic planning group the marketing director has asked the team to carry out a competitive market analysis so as to determine the product's potential success. The paper will focus on cellutant electronics primary competitor in the products market.

Introducing a new product or service into a marketplace requires more than just a great idea. Companies are often enamored with new product ideas that would appear to be unlimited in its ability to capture a market. However, limits do exist and failure to properly conduct market research could lead to a failed product introduction. Enabling analysis of a market to determine the level of competition requires the use of Porter’s five industry forces; the character of rivalry, the threat of new entrants, the threat of substitute products or services, the bargaining power of suppliers, and the bargaining power of buyers (Williams 2017).

In determining the industry’s attractiveness, we have analyzed the rivalry among competitors, barriers to entry, power of suppliers, power of buyers, and the potential threats that can impact the market. Overall, we

4. An analysis of the industry, i.e., degree of competition, growth of industry-wide sales, profitability of competitors, life cycle stage of the industry, Porter’s five factors, and P/E ratios of competing companies.

As with every industry and business, there is competition. In the case of the craft beer industry, the competition is medium and growing. From challenging the big macro-breweries, to battling against new incoming brewery businesses, the craft beer industry is absolutely on the radar for competition. Macro-breweries are still the largest competitors with craft breweries. The major player in the craft beer industry, according to IBISWorld, is The Boston Beer Company. It holds a market share in the overall beer industry of only 2.7%, and a revenue of $885.5 million in 2014. In comparison to the major players in the overall beer industry, Anheuser-Busch InBev and MillerCoors

The threat of new entrants refers to the threat posed by new competitors within an industry. If it is easy for new firms to enter the industry barriers to entry are low and the threat of new entrants is high. A profitable industry attracts more competitors. Economies of scale, learning curve effects and other macro factors impact the nature of an industry 's

Hotel Industry is a very lucrative sector that can generate high amount of revenue if proper strategies are established. According to Statista (2014), the worldwide hotel industry is estimated to generate about $550 billion in revenue in the year 2016. In their statistics, the company that is contributing the largest part of this revenue is the British hotel chain, Intercontinental Hotels Group which generated about $21.6 billion in 2013 (Statista Corporation, 2014). The Intercontinental Hotels Group has more than 4,600 hotels worldwide. It is followed closely by other major players such as Hilton Worldwide (3,992 hotels globally),

The learning objective for the industry analysis is: to determine the opportunities and threats that exist for firms within a competitive environment. They should be able to appreciate how the various forces operating in an industry create or limit the chances for survival.

Porter’s Five Forces model is used to evaluate the degree of rivalry between competitors in a given industry through assessing the four forces that lead to this outcome. These forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products.