Porter Five Forces

Based on the organisation that you have selected, you are required to describe the organisation’s mission, describe and classify the organisation’s strategy, and identify its‟ value proposition and core competencies. Using Porters Five Forces Framework illustrate these five forces for your organisation, and provide brief comments on how these forces they influence your organisation’s profit potential. Using the Balanced Scorecard as a contemporary performance measurement framework, evaluate the current financial and non-financial measures that your organisation uses. Based on your evaluation, indicate in your opinion, the extent to which the

While Target is grappling with the immediate issue of eliminating “show-rooming” in their stores, the more pressing issue is, evolving their business model to fully exploit e-commerce to maintain a competitive advantage (Kinicki, 2013). Analysts estimated that customers would spend $1.4 trillion online in 2015 and yet, as late as 2011 e-commerce only accounted for approximately 2% of Target’s overall sells (Kinicki, 2013). Therefore, Target’s management team must create and execute a strategy that enables Target to adjust to changing customer purchasing patterns, significantly increase internet sells, and lower operational cost (Kinicki, 2013).

Duke Energy Corporation is the largest electric power holding company in the United States. They are a leading energy company focused on electric power and gas distribution operations, and other energy services in the Americas. These services include a growing portfolio of renewable energy assets. Duke Energy supplies and delivers energy to approximately 7.3 million U.S. customers (Fast Facts). Their market cap for 2014 was $57.5 billion with operating revenues of $23.9 billion (Fast Facts). Duke Energy's headquarters is located in Charlotte, NC. The total United States generation capacity owned by Duke Energy is 57,500 megawatts (Fast Facts). They employ more than 27,000 people. Duke Energy's operations are in North and South Carolina, Ohio, Florida and Indiana, representing a population of approximately 22 million people (Fast Facts). Duke Energy stock trades on the New York Stock Exchange under the symbol DUK.

The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.

The threat of substitutes for the Household Products of the Nondurables Industry is high. As mentioned before, each company produces a product that is very similar to its competitors. Customers also have high bargaining power in that they can buy substitute products such as paper towels and disinfecting sprays. If a company does not spend time and effort marketing its products, consumers will not be able to differentiate them from a competitor.

The threat of substitutes is low. Buyers are unlikely to substitute Corning’s product because few substitutes exist. Additionally, switching costs would also be high for business buyers to substitute Corning’s with another manufacturer’s

The writings of the American managementguru and Harvard-Professor Michael E-Porter are considered to be among the most influential of their subject – and among the most critiqued ones. Porter had a lasting influence on strategic management with his books about competitive advantages on industry level and on global level, which were written in the eighties. Porter’s models like the Five Competitive Forces, the Value Chain or Porters Diamond have become standard equipment of the manager’s toolbox. Porter’s ideas became more and more subject of critique under the impression of the developing Internet economy during the last decade. Critics point out that economic conditions have

The global economy and closely tied emerging socio-factors continue to cause a decline in demand for soft drinks. This paper will utilize Porter's Five Forces Model and the PEST analysis to determine whether or not these external pressures have created an attractive industry (NAICS) and what barriers exist.

Given the demands of today's competitive and dynamic environment, it is quite challenging to understand strategic issues facing organizations and develop the capability for long term organizational success. Introduction in today's dynamic and competitive business environment, survival, growth and profitability are the essence goals of all industries. Nowadays, Porter's Five Forces is currently being adopted as the powerful management tool of choice by many organizations. The essence of Porter's Five Forces is that it can help senior managers to make right decision and build and sustain competitive advantages in the organization

In which industry does P&G compete? Apply Porter’s Five Forces Model to the industry. Is this an attractive industry?

The threat of substitutes is the availability of a product that the consumer can purchase instead of the industry’s product (Free management books, n,d ). A substitute product is a product that produced by other industry and offer similar benefits to the customer as the product produced by the firms within the industry. The threat of substitutes can affect the competitive environment for the firm in that industry and also influence the profitability of the industry. This threat affects profitability of the industry because the consumers can choose to purchase similar product from other industry to instead of the company’s product. Besides that, the more the close substitute product can make the industry more competitive and decrease the profit potential of the firm in the industry whereas the less the close substitute product can make the industry less competitive and

The Porter’s five forces model considers industry as a unit whereas RBV narrow down to a firm or an individual resource as a unit of analysis. However, looking at another a different angle, both five forces and RBV models are prescriptive in nature and assume that managers are rational. In the Five forces model, manager has to make the right assessment before choosing the appropriate strategy to manage the five competitive forces in order to improve the position of the organization, thus earning above average profits. However, in RBV, the managers have the entire tasks of identifying, developing and deploying key resources to earn and sustain superior profits. It is not only about the ability of the managers to make the correct decisions, but also about their ability to work creatively with the raw material presented by their firm and their environment. It also involve the ability of the manager to respond appropriately when their firm’s organizational structure finds good strategies and to create decision structures and procedures that allow a firm to respond to its environment

The threat of substitutes: where it refers to substitute product as those that are available in other industry which can also fulfil the need and want of the consumers. It can affect competition in an industry by placing an invisible ceiling on prices which companies within the industry can charge, due to the fact that if the cost of substitute is low then the consumers will tend to purchase substitutes, therefore limiting the prices that a company can place on certain items to gain maximum profit. For example, lemonade can be substituted for a soft drink. Generally, competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumer 's switching costs decrease.

The price and availability of the product is acceptable alternatives, which places a ceiling price that can be charged to producers and sellers of the product quality can be upgraded to a void, to reduce costs through cost reduction, or because they are separated from their product and its alternatives, the alternatives may be made inroads with its sales and profits low growth for the rate risk. Retailing industry, as mentioned, there is a more number of competitors. This is the total of all the companies in the industry, prices can go down to the enmity of the main force. For example, the name of the retailing industry as an alternative force of Sainsbury 's Warehouse Warehouse offers the lowest prices and most of the products they offer will be of equal quality to match. Switching from another chain, a relatively low-cost or fuss for the user, so that the industrial Substitute energy is very high. The quality of the warehouse and at the same time while driving down costs and open up an avenue to differentiate from their competitors.

Porter’s Five Forces Framework Model analyses the competitive forces within the environment in which a company operates, to assess the potential for profitability in an industry. Porter consists of threat of new entrants, threat of substitute, buyer power, supplier power, and rivalry among existing competitors. The change in any forces normally requires firms to observe the market and make the decision in overall change of industry information. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average.