Analysis Tools: What is Porter 5 Forces?

673 WordsFeb 24, 20183 Pages
1) Analysis tools : Porter 5 Forces What is Porter 5 Forces? Porter 5 Forces is a platform or an analysis tools for an assessment and evaluation of the organization competitive strength and position of the business. This concept is used by the organization to identify the competitive intensity and attractiveness of a market. Porter 5 Forces also is used to describe the position of the business company in the industry and how to make the business to move on and it can be apply to any variety of business company. i) Potential New Entrants As we know, the threats from new entrants are one of the most problems that were happen in industry. The factor that influences the organization from new entrants is new branding. For Faiza Sdn Bhd, they have their own branding for each products manufactured. Branding can increase the loyalty of the customer and it is difficult to new comers enter to the industry and to gain a market share. From the research, the potential problem that was occurred in the new entrants in the industry is about cost advantage. This is because, when the new entrants offered a low cost, customer will switch their desire to a new low price, so that they can budgeting their purchasing. The main products from Faiza company is rice and spices, in this case, there are many competitors that manufactured the same product but with the low price which can attract more customer. Such as, Jasmine, Jati and so on. To avoid from the threats of new entrants the company
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