Fresh Direct Porter's Five Forces Model

There is a threat of bargaining power of buyers as there is a lot of competitors, which give the choice to convert from one chain to another. Moreover, chains are working strongly in the promotion, price, opening branches everywhere, developing the product, and cares regarding quality. It

After the analysis of Jetstar’s societal environment with the use of PEST, the Porter’s Five Forces can be used to analyse another aspect of the external environment; the task environment.

It does not matter what type of company it is, again internet or traditional, there are going to be difficulties with a startup. There will be difficulties that no one thought of, and money is usually tight. Bad decisions happen because of unpreparedness, and partners disagree. All of these can lead to the quick breakup of a company. An internet company has the advantage of not needing as much money to startup as a traditional brick and mortar business. The internet startup also does not need a traditional product, advertising or as many other resources (Makler, 2006). It is easier in some respects to get this type pof company off the ground because it can be started the day the idea is formed and making money as soon as the website is ready. A traditional business requires more planning and capital (Makler, 2006).

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

The threat of new entrants is moderate. It is relatively easy for a company to enter this market because there are not a lot of legal barriers. But a smaller company that has just entered the market would have a tougher time competing with some of the larger companies – an obvious reason being that larger companies can have larger inventories. Another reason is that larger companies can do things to weaken the smaller companies, such as offer discounts, sales promotions, and increase spending on advertising. Since most of the companies in this industry are competing on

Before deciding on whether or not to engage in e-Commerce, a business must look at several factors in order to determine if they are ready and able to do everything needed in order to make it successful. Companies should initially perform a SWOT analysis in order to determine if selling products online would be beneficial to the overall company. They also need to make sure they understand they will be dealing with customers all over the world and are willing to take on the work involved to know all of the legalities involved. Taking a business online opens up a world of opportunities but also presents new challenges and difficulties. A company has to be able to spend the time and money in order to do the necessary research so

Bargaining Power of Suppliers: Suppliers for Company G are numerous. Giving Company G the advantage. Depending on price the suppliers maybe able to negotiate at a certain level depending on quantity which turns the tables.

On the other hand, online businesses are a recent invention and are far from reaching a point of saturation. It is impossible to imagine a world without internet.

The number one strategic issue for Chipotle is continuous and cost-effective supply of organic and ethical ingredient’s. It is recommended that Chipotle should develop stronger relationship with suppliers. It can do so by personalizing the relationship and by doing business with suppliers who share the company’s vision. Chipotle can also involve suppliers in its business to motivate them. For instance, Chipotle can offer stock options to suppliers in Chipotle or it can launch a product together with the supplier so that the supplier is as invested in Chipotle’s success as Chipotle.

Bargaining power of suppliers: The inputs to this industry are fuel, planes, vans, customs & permits etc. the companies do liaison

Industry not as attractive as before for new entrants due to impact of online shopping

The bargaining power of buyers stands in a direct relationship with the bargaining power of suppliers. If the bargaining power of buyers is substantial it increases the opportunity cost of suppliers. The greater the buyers concentration the greater their bargaining power. This bargaining power is also increased in markets where the suppliers’ concentration is high. The bargaining power is also increased when the cost of switching from one supplier to another is low. In instances where backward vertical integration is possible i.e. buyers setting up their own chains of suppliers the bargaining power of the buyer increases in that their prices may become more competitive. In a market where the buyers are more concerned over quality than price their bargaining power decreases as they are less inclined to shop

Porter 's Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes.

Porter 's Five Forces model (PFF) is a powerful instrument that can be utilized by companies to investigate its situation and identify its industry 's competitors. Analyzing industry will help any business in determining the competitive strength and weaknesses. By using PFF model, investors can gain valuable information regarding what the actual factors that affect the organization 's profitability (Evans & Neu 2008). This paper will analyze the Cola Wars case study based on the PFF model, and the primary components of soft drink industry. At the end of this paper, some recommendations will be given to Coca-Cola company to enhance its position in the market.

I am a registered nurse employed in a hospital in the healthcare industry. Porter’s five forces model begins with the first force being the intensity of rivalry among incumbent firms (Parnell, 2014). Competition in healthcare, particularly hospitals, is limited. Due to the accredidation process, government regulations such as a certificate of need (Certificate of need, n.d.) and licensing of facilities and providers, competition is limited. The Federal Trade Commission (FTC) is looking at ways to increase competition in healthcare such as opening up opportunities for nurse practitioners, increasing the availability of such technologies as telehealth and establish more competitive healthcare pricing. In cities, there is more of a concentration of competitors. The hospital that I work at is the largest between Memphis and Nashville and has the busiest ER in the state of Tennessee. Therefore, the concentration of competition is low for that particular hospital. There are high fixed costs with a hospital such as buildings, overhead, equipment, and salaried personnel. Yet, a hospital does not cut their prices to increase patient census. However, it could be questionable in a low census period as to whether there are additional tests run or hospital admissions that would ordinarily not happen if the census were higher. There is strong growth in the healthcare industry with the industry growing at twice the rate of the national economy (Health Care Industry, 2012).