Scott Competitive Forces

I recently purchased a MacBook Air to replace a Dell Inspiron laptop that failed miserably. The move from a PC to a Mac was primarily the result of mouth-to-mouth marketing on a social media network. New York Times journalist Nicholas Kristof lamented on his Facebook page that his laptop PC the one that is used to convey Kristof's fascinating column and blog written during his travels was showing substantive signs of wear and he put the question to his readers: What type of computer should he consider as a replacement? The timing was perfect: after two trips to the Geek Squad, I was in the market for a new laptop. I had not yet begun to check out advertisements online. Reading Kristof's column, I was impressed by two things: (1) The quotidian rigors to which investigative journalist exposes his computer is impressive. (2) Hands down, the other journalists from all over the globe who responded to Kristof's inquiry recommended a Mac Air. This personal experience highlighted for me some basic principles about competitive advantage that I applied to the strategy simulation game.

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

I am going the review the Article "The Five Competitive Forces That Shape Strategy" written by Micheal E. Porter. This article was published in Harvard business Review in year 2008.

The task instruction is: Analyze Company G’s competitive environment utilizing Porter’s Five Forces Model of competitive forces. While headings below may provide some guidance for how to organize the paper, please refer to the recommended text (index topic: “Porter’s 5 forces model”), the learning community, and recommended web sites. As you will see from the reading, Porter’s 5-forces is a way to examine threats to a company’s success – which was competition imposes.

• Discussing the two forces of competition, which are threat of new entrants and threat of substitutes, and identifying the most significant of those forces for McDonald’s Corporation.

In 2005 Saudi Arabia became a member of WTO and opened up the Saudi Telecommunications market to foreign competitors. The Saudi Arabian Telecommunication market has become increasingly competitive. In addition to competing on prices all the major competitors are striving to offer differentiated products and services aimed at increasing their market shares. The competition is apparent in the decline in STC’s income despite higher revenues.

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

The greatest challenge faced by many organizations today and especially the labour intensive industries is ensuring there is a sustainable

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.

“Competition is not only the basis of protection to the consumer, but is the incentive to progress” – Herbert Hoover. The environments that today’s firms operate in are not static. The competitive environment they are operating in is constantly changing due to the entry or exit of competitors, changing technology and the demands of consumers. In order to maintain their market share and profitability, firms must continually assess and evaluate their competitive environment. Evaluating the various market forces firms’ face, and their effect on the competitive market ensures that an organization retains a proactive stance to the competitive environment. Instead of just accepting the status quo, organizations that actively examine and analyze their environment can then make choices and develop strategies that take advantage of the competitive situation or affect it to the firm’s benefit. This proactive stance to the market allows organizations to create value and position themselves for long term success. Firms that do not remain proactive and continually scan the competitive environment run the risk of being blindsided by innovation in the environment or significant changes undertaken by the competition.

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

Threat of New Entrants – The threat of new competitors entering an industry is high when initial

Michael Porter, an authority on competitive strategy, mentions five forces that the stronger each of these forces is, the more companies are limited in their ability to raise prices and earn greater profit. In carefully scanning it industry, the corporation must assess the importance to its success of each of the five forces. Now, we will analyses these five forces in the inner-city paint corporation. The first one is threat of new entrants which means newcomers to an existing industry. The new entrants typically bring new capacity, if the company wanted to resist the threat of new entrants. They must build an entry barrier which is an obstruction that makes it difficult for a

The threat of new entrants: According to our text, the threat of new entrants is the possibility that the profits they make in an area may be eroded by new competition. The McDonald’s by me competes with Burger King, Wendy’s, Dairy Queen, and other smaller places like Zel’s. Each time a new place opens the less business they will have. For the other company, there will be a barrier to entry. They will have to use product differentiation to bring in the customers…to make them overcome their loyalty to McDonald’s (Dess, p. 53).

51]. The model suggests a successful businesses strategy to wart-off competition by careful application of an “environmental analysis”. The Porter model proposes five elemental strategic defenses against five potential forces: threat of new entrants, rivalry among competitive firms, bargaining power of suppliers, bargaining power of buyers, and the threat of substitution products.