Porter 's Five Force Analysis

The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.

A key component of managing a business effectively is having an understanding of the competitive environment in which that company operates weather it’s a large or small business. A way to access the competitive environment is the use of Porter’s model also known as Five Forces Analysis. The Five Forces Analysis was developed by Michael Porter of Harvard business school back in the late 1970’s. Ideally this analysis should be done before starting up your business. It can show you the likelihood of success of the company before you start it up. Even if your company is established the Five Forces Analysis is still extremely valuable. Once you understand the forces that are acting on and affecting your business being a success you will be in a much better position to develop strategies to combat those forces that are working against you. Porter identifies

The five forces used to analyze the level of competition formulated by Porter are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services and rivalry among existing competitors (M. E. Porter, 2008). Two additional forces, proposed by Boehlje & Olson (2010), provide an external dynamic to Porter’s original five forces, namely technology and other drivers of change. In order to use the Porter five forces as an adequate backbone for describing the competition in our desired sector, we need thorough knowledge of the factors comprising these forces. We begin by providing an overview of general important factors used in recent literature.

In a landmark article published in the March/April 1979 issue of the Harvard Business Review, Michael Porter identified five competitive forces that determine if you should enter a new market segment.

Porter’s five forces model describes 5 components. Buyer power, supplier power, threat of substitute products or services, threat of new entrants and rivalry among existing competitors. Using this scenario, I will explain every of these components.

This Power Point presentation discusses the various factors that present challenges for new competition entrance in the airline industry. In terms of the Porter's Five Forces evaluation, this document is a good starting point for determining the types of factors that would effect new competition. It is not a credible source of information on Southwest Airlines, but it gives an overview of the types of factors that would affect new competition.

Porter's Five Forces allowed us to analyse the influences on the industry in which Tesco operates. It highlights where Tesco has developed a competitive edge over its rivals.

. Prices with no real concern about product quality. Target on the other hand markets and sells unique products of good quality and to customer who don’t mind to pay a little extra for manufacturing. In order for Target to remain profitable and relevant in this industry, the company must be strategic with their resources and marketing efforts.

The primary focus of this article and analysis is to provide detailed analysis using Porter’s Five Force Analysis to scale the United States largest manufacturers of automobiles. The creativity and dynamics of the industry overall make it one of the most interesting industries in the country. The competiveness of rival corporations, the sizes of the manufacturers and the innovation that is constantly changing make the industry all the more interesting. Throughout this assignment the discussion and analysis provide an in-depth look into the history and background of the American automotive industry, its characteristics, and the focus of its structure and framework using Porter’s Fiver Force’s Model. The research will aid in providing

Michael Porter's Five Forces Analysis is a framework that used for industry analysis and understand the level of competition in an industry in order to develop business strategy (Tang, 2014). There are two key players in the local malt liquor market (MLM) industry of Malaysia, GAB Berhad and CBMB who have occupied 95% of the total beer and stout market shares in Malaysia (CMBB, 2015). Therefore, the competition among existing brewers are low as there are only two major brewers in the local MLM industry. The threat of new entrants is minimum as government policies and complicated tax on beers have restricted other investors in the market. The switching cost among competitors is low as the price difference between the products of competitors are minimised. This has been proved by a research, which has been done at a local shopping centre, Aeon Mahkota Cheras Store & Shopping Centre, which located in Cheras, Selangor, Malaysia. As figure11 shown, the minimum price difference between a competitor is only RM1.00 for mainstream product, and the maximum price difference is RM3.00 for Premium beer

Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation”.

The Market environment is another external sector however unlike the macro environment, which the business has no influence over, the market environment can be manipulated by a business especially one of MRPs prestige and experience. Porter’s Five Forces Model is a reliable tool that the business should make use of to identify aspects of the sector that may cause threats or opportunities to arise.

3. Please apply Porter’s Five Forces model to the steel industry. propose whether you think the steel industry is attractive industry or not an attractive industry.

The Porters Five Forces Model was devised by Professor Michael Porter. The aim of the model is too analyse the nature of competiton within an industry. This means that the porters five forces model can be a powerful tool (E. Dobbs, 2014).

Despite recessions and shifting markets some companies grow in revenues and profits. Why is this so?