Choosing A Start Up Business At Invest $ 1 Million Dollars

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When choosing a start-up business to invest $1 million dollars in, I would choose Appleton Learning. Founder Glenn Clayton needed more money while he was in college so he decided to begin a teaching service for local school students who needed his services. This was a smart choice for a start up business because this industry will always be in demand but it can also easily correspond with Porter’s Five Model, which analyzes the competitive focus in the environment in which the business operates. The first force, buyer power, is the “ability of buyers to affect the price they must pay for an item" (Baltza, 2015, p. 20). Shortly after launching his business, Clayton realized the demand needed for this type of organization because of the amount of hour he was working. With many students leaving “big name” tutoring companies, Clayton has created a high buyer power situation. The individuals who are purchasing these services are more concentrated than the sellers of the services, they are purchasing a high volume of the services provided and Appleton offers substitutions and modifications for the services provided for each student. The second force on Porter’s Five Forces Model is supplier power. Supplier power is the “suppliers ability to influence the process they charge for supplies” (Baltza, 2015, p. 21). In many industries, supply power is one of the primary forces that that shape the competitive structure of the business (Wilkinson, 2014). However, supplier power is not as
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