5 forces analysis
Porter 's Five Forces Framework is a tool for analyzing competition of a business of an industry in terms of its profitability. The most unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit levels. The five-forces perspective is associated with its originator, Michael E. Porter of Harvard University. This framework was first published in Harvard Business Review in 1979.
Each industry generates profits, and the industry competes against 5 competitive forces for the profits. If left unchecked, the industry’s entire profits will be siphoned off making it irrelevant economically.
Those 5 competitive forces
1. Threat of New Entrants
2.
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Profitable industries that yield high returns will attract new firms. New entrants eventually will decrease profitability for other firms in the industry. Unless the entry of new firms can be made more difficult by incumbents, abnormal profitability will fall towards zero (perfect competition), which is the minimum level of profitability required to keep an industry in business.
With the Investment and the purchase of Disney of Lucasfilm of 4.05 billion USD, this has caused a new threat to entrant of Disney to be a much bigger player in the Movie industry and a new player in the Sci-Fi movie industry. This Disney stock has more than doubled since the Star Wars acquisition, which means it’s outpacing a growing market by an additional 50 percent. This has caused the market to be more expensive and more competitive where the competitive part is good however the products would be more expensive and other Sci-Fi films might not be able to match it if its budget are too low.
Here lies the largest threat to Hollywood related movies like Star Wars. Once upon a time, they defined our sense of entertainment. Once upon a time, they created for us a subculture of ideas and expectations. Remember the in the previous Star Wars movie that there were flying cars and bikes and showed us that humans have the “Force”
Porter’s Five Forces (1980), named after Michael E. Porter, is a critical framework to access the level of risk and degree of potential profitability of each industry in which firms are competing. Specifically, five forces are shown in Figure 1, are includes competition between rivalry, potential of new entrant, threat of substitute products, and pressure on bargaining power of suppliers and customers.
Porter has identified five (5) competitive forces that shape every industry and every market. The forces determine the intensity of competition and hence the profitability and attractiveness of an industry. Based on the information derived from this analysis, management can decide how to influence or to exploit particular characteristics of this industry.
The intensity of rivalry, which is the most obvious of the five forces in an industry, helps determine the extent to which the value created by an industry will be dissipated through head-to-head competition. The most valuable contribution of Porter's “five forces” framework in this issue may be its suggestion that rivalry, while important, is only one of several forces that determine industry attractiveness.
The first Star wars movie “STAR WARS: EPISODE IV A NEW HOPE” was a game changer in the world of movies. According to the National Information Services, LLC “STAR WARS: EPISODE IV A NEW HOPE” made $1,554,475 just in the opening weekend on May, 25,1977 and made a whopping $786,598,007 according to the worldwide box office ticket registry. "Box Office History for Star Wars Movies." Star Wars Franchise Box Office History. Nash Information Services, LLC., n.d. Web. 09 Sept. 2016. This film is idolized by millions Americans and foreigners and we can all thank one man for it. George Lucas. A lot of opinions have been formed about all six of the Star Wars movie some good some bad. Throughout this essay I give you data on Star Wars, background information on George Lucas the creator, George’s mindset on the changes of the originals and prequels, my judgement on fan reactions and George’s decisions, and of course the opinions of the beloved fans who made Star wars famous.
I was once asked, if I thought the decision to reorganize of the state was right. Specially taking about creating the JDOC command structure, I said, “who else is going to do what we are doing?” The job of domestic operations has always been an additional duty, with very little time for planning or preparing for upcoming events. We are a reactive organization and I can see how that can kill us in the end. Our focus in the past 15 years has been on how prepare to go to war, which is our federal mission, and we have forgotten how to take care of our citizens in our own back yard which is our state mission. This reorganization has forced us to look to our left and right, and view the Oregon National Guard a one force both Army and Air. We as an organization are learning each other’s capabilities, strengths, weaknesses, and how we can better support each other in the
The success of this movie gave Lucas a great deal of credibility and would be the key stepping stone in allowing him to create his next movie, Star Wars: A New
Michael Eugene Porter is an economist, author, advisor and a researcher. He is the creator of Porter Five Forces theory, which is a framework for a business. The model “identifies and analyzes five competitive forces that shape every industry, and helps determine an industry 's weaknesses and strengths” (Investopedia LLC, 2016). The five forces are competitive rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entry, and threat of substitution. This is a very important theory which a business can strengthen their position.
With alien races, wild space rides, diverse planets, and a power known as the Force, Lucas not only made a movie...he made a new civilization with everything science fiction has to offer.
Many families have grown up watching George Lucas’s “Star Wars” franchise. When fans saw that Disney bought Lucasfilms, fans had a small hope that Disney would continue the “Star Wars” franchise. Their dreams came true when Disney released a trailer for “Star Wars the Force Awakens.” Even with mixed reviews, most fans disappointed after the movie came out on December 18th, 2015. On April 16th, 2016, Disney released a teaser trailer for another “Star Wars” movie called “Rogue One: A Star Wars Story” This movie would be a prequel and a spinoff about how the Rebels acquired the plans to destroy the Death Star. This made fans excited because all the previous “Star Wars” movies have been about the Skywalker lineage and this movie shows us a new kind of “Star Wars,” a more grittier, darker, war like movie, and without a Jedi. The movie is from the point of view of Jyn Erso, daughter of Galen Erso; Galen is a enslaved Imperial scientist, who has secretly put a weakness on the Death Star. While Jyn on was freed from Imperial imprisonment by the Rebels; then is asked to retrieve her father message with help of Rebels and various others, get his plans on how to destroy the Death Star, and finally get those plans to the Rebels. Even though fans were excited some were afraid this movie might be a flop like “Star War the Force Awakens” was to
Throughout the years, Star Wars has played a prevalent part in Sci-Fi culture. However, with the release of Star Wars: The Force Awakens, the main audience of the franchise has made a major shift from its original demographics and has garnered a more mainstream group of viewers. In addition to its traditional audience of males age 18 to 44, females and teenagers have taken a new liking to the film. Because of these new age groups and gender groups finding more of an interest in the mega-blockbuster saga, Lucasfilm and Walt Disney Studios can expect a major economic upturn upon release of future Star Wars films.
Rivalry between companies takes the form of competing for position using different strategies i.e. price and advertising competitions and product positioning. This rivalry increases when companies have an opportunity to improve their position or the competitive pressure increases. Companies are mutually dependent, so the pattern of action and reaction may harm all companies and the industry. TSCO’s main competitors are Rural King, Southern States and Orscheln (Logel;Klein, 2015).
Star Wars was a serious breakthrough for the marketing of Melodramatic movies. Star Wars: A
PORTER’S 5 FORCES ANALYSIS: Overall, we found this to be an unattractive industry due to the following factors:
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.
Competition: As time goes on firms drop out until no one is producing the product.