Porter Five Forces Model

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Question A: i) Porter five forces are about determining industry's profitability, attractiveness and the level of completion " Porter claims that there are essentially five forces which determine the underlying structure of an industry i.e. rivalry between existing players, the bargaining power of buyers, the bargaining power of suppliers, the threat of new entrants into the business and the threat of substitute products. By examining each force and the balance between them, it is possible to determine the overall level of competition and therefore the overall attractiveness of the industry. The collective strength of the forces determines the ultimate profit potential in the industry." (McDermott, p.4) A non-competitive situation is regarded…show more content…
Thus, if the analyst of the non-profit Properly analyzed and defined the non-profit industry, taking into account the differences between the non-profit and profit (differences like donors of charity organization could be both buyers and suppliers at the same time). He/she can reach sound results that well help in increasing the extent that the outcomes well be useful in making sound decisions. ii) As declared above the porter's model can be used in non-competitive situation where non-profit operate. Public organizations are non-profits and more concerned with the forces affecting its ability to achieve its objective effectively. In other words, public sector compete to provide best services aiming for reputation and gaining rewards which will increase their effectively and service quality. Thus, Public sectors can use the five competitive force strategy of Porter to analyze the external forces acting on the…show more content…
So, to survive in this industy, banks in Oman should defrentiate by provide quality, varity and best rates with cutting and minimizing overhead cost. Also, power of supplier (customer with big diposts & borowers neguation) in banking industry is high. The corporate Banking in Oman is Concentrated "organizations concentrate banking activities with one bank" " in Oman. The degree of concentration in the banking sector, as measured by HHI is seen to be ‗moderately high" (Rath, Mishra, Al Yahyae, 2014, p.13) Centeral Bank roles regarding the browing and lending rates, and capital edecusy contribute in regulating the commpetion intensity. The key success factors in banking industry in Oman are technology to make services convenent and fast like ATM and online services. Technology also contribute in cutting transational and operation costs. Second, Approach large amounts of lending and deposit and provide special services to them. Third, varity of products with best rates for example, offering loans with the minimum interst rate about 4.3% and have a board number of products espasily loans for different purpose that fulfill people needs for instance recently they launched loans for cosmetic surgery
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