Case Study Blue Nile

The Egyptians were very lucky to have the Nile River because without it they wouldn’t be able to survive. The Nile shaped Egypt by granting them with almost everything they needed. Where the Nileś source came from may have been a riddle to them but we know that came from Lake Tana which is the branch called the Blue Nile and from Lake Victoria which is the other branch called the White Nile. Egypt has been around for five thousand years and for all of those five thousand years the Nile River helped the Egyptians survive in Egypt. The Nile River shaped Ancient Egypt by setting a calendar, providing food and water,

Michael Porter wrote about five forces affecting the profitability and viability of companies. The five forces are existing competitors, new entries into the market, substitute products, bargaining power of customers, and the bargaining power of suppliers. (quickmba)

Without the Nile River, Egypt today may not have existed. The Nile River helped shape Ancient Egypt’s diverse culture and various philosophies, which is what made it a very successful (if not the most successful) ancient civilization. The Nile did this in numerous ways such as allowing travel, producing art and religion, and flooding so that people could grow crops. Without the Nile, the success of Ancient Egypt would have been debateable. Ancient Egyptians did have the Nile River however, which led to their ultimate success for almost 3,000 years.

1. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? Do a five-forces analysis to support your answer.

Porter’s Five Forces is a framework that consists of five competitive forces, threat of entry, power of supplier and buyer, threat of substitution and competitive rivalry. These forces facilitate the analysis of the task environment of an industry or company (Wheelen and Hunger, 2009).

Competitive environments are defined by the identity, track record, financial strength and market share of key competitors. Harvard Professor Michael Porter 's Five Forces model can be used to evaluate a company 's competitive position. These five forces are barriers to entry (the ability of new players to enter the market), buyer power (the ability of customers to influence price),

Threat of new entrants is relatively low. There are high barriers to entry in the discount retail market, including high capital costs, limited access to investors, and a largely crowded-out market place.

Did you know that the Nile River is the longest river in the world and flows for over 4000 miles? With the last 660 miles of the Nile River flowing through Lower Egypt and the Nile Delta, it played a big role in ancient Egypt from the time of the first pharaoh in 2920 BC through 30 BC. The Nile River shaped Ancient Egypt in at least 3 ways. It provided for their food supply, transportation and trade, and spiritual beliefs.

Porters five forces will help us in analyse the industry amazon.com is in. Five Forces which will be analysed will be

The competitive forces that shape company strategy are very important to consider in any organization. However, they are especially important when an organization’s forces fall closer to the “intense” side on the scale between “intense forces” and “benign forces.” “Almost no company earns attractive returns on investment” when forces are intense, like those in industries that sell luxury goods. (Porter, 2008). Yet, Robert Mondavi’s wineries have leveraged the five forces (barriers to entry, bargaining power of suppliers/buyers, threat of substitutes, and competitive rivalry) in order to maintain consistent profits. The five forces are discussed in detail below with the level of importance increasing throughout the descriptions.

As we begin to strategically plan for our business, it is important for us to take a deep dive into our competitive environment to understand where we are strong competitively and where we are weak competitively. An analysis of the forces driving industry competition using M.E. Porter’s Five Forces Model will assist us in determining where the power lies in a business situation as we begin to plan. We must understand how they work in our industry and how they affect our particular situation. Whatever the collective strength of these forces is, our job as the strategists of the organization is to

In the article, “The Five Competitive Forces that Shape Strategy,” Michael Porter argues that the five forces are an important element for managers and investors in the business industry. Porter stated that it is important to “understand the competitive forces, and their underlying causes” which many companies will use to determine if they will gain profit or not (Porter 80). Companies determine their profitability of the industry through the level of the force that they face. For instance, when the forces are favorable, most companies will be profitable. Porter gives a detail description of the five forces and explains the importance of each force. The five forces are the threats of new entrants, the power of the buyers, the power of the suppliers, the threats of substitute for products or services, and the rivalry among existing competitors. Porter believes that “a company strategist who understands the competition extends well beyond existing rivals will detect wider competitive threats and be better equipped to address them” (Porter 93). In other words, when strategists understand the different forces it will benefit them to make better decisions and to be ready to face the different challenges between competitors. In the article, Porter’s main goal is to present the importance of the five forces to the audience.

The Porter Five Forces has been developed in 1979 to analyse industry’s affective and profitability. It is a famous tool for gaining insight into the overall fashion apparel industry and more importantly the role of Creación with a variety of key factors affecting the company itself. The Porters Five Force model comprises competitive rivalry within an industry, threat of new entrants, threat of substitutes, bargaining power of suppliers and bargaining power of buyers.

The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share.

According to Michael Porter, “Every industry has an underlying structure, or a set of fundamental economic and technical characteristics, that give rise to these competitive forces” (Porter 1998:23). The forces mentioned above are: industry rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of buyers. Additionally, Porter mentioned that: “Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda or action” (Porter 1998:22).