Essay about Porter's 5 in Mining Industry

Answer: Force 1: The Degree of Rivalry 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.

Lincoln Electric expansion to India Name Institution Affiliation Date Market entry strategy involves the essential requirement for a company to get into international level. The need of involving other companies whereby two companies join together is referred to as joint venture entry. They get into a similar market and make the same production

If an industry is profitable, it will become a magnet to attract more competitors looking to do same business with us. If it is easy for these new entrants to enter the market, this poses a threat to the firms already competing in that market. Threat of new entrants is one of the forces that shape the competitive structure of an industry (Marc, 2014). A high threat of entry means new competitors are attracted by the profits of the industry and can enter the industry easily. New competitors entering the marketplace can make the market share and profitability of existing competitors more threaten cause the existing competitor to make some changes to existing product quality or price levels. A high threat of new entrance can make an industry more competitive and decrease profit potential for existing competitors whereas a low high threat of new entrance can make an industry less competitive and increases profit potential for the existing

1. External Analysis In order to understand the environment of the mining industry and evaluate Dicore’s competitors and customers, this chapter will adopt some tools, such as PESTEL and Porter’s five forces, to analyze the external environment of Dicore International.

5. The bargaining power of buyers The market greatly depends on how powerful buyers are in terms of their willingness to pay certain prices. The following determines the bargaining power of buyers

External Environment Competitive Market Slade’s competitive market is metal product market. It can be analyzed with the Porter’s Five Forces Model: risk of entry by potential competitors, rivalry among established companies, the bargaining power of buyers, bargaining power of suppliers, and threat of

Bargaining Power of Buyers - The force of the buyer’s bargaining power can reduce prices and demand higher quality products and services (Porter, 1998).

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.

According to Cambridge dictionary (2015) coal is a “hard, black substance that is dug from the earth and it can

Threats of Substitutes: Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

In doing research on government price controlled products I found that in the 1950’s during the Korean War the government placed a quota on the steel mills in the United States. During this time the steel industry was vulnerable to government control do to the fact that steel was a vital part in the production of military equipment, and supplies. So the United States government established quotas at low prices, as well as that the steel mills must meet the quota set by the government to be able to sell steel to the private market. The steel mill owners would not agree to this unless the wages of their employees were controlled in a similar way. In this case the steel industry had no reason to grow their operations in achieving the government’s quotas at the cost of loss in profit’s. At this time the only way to keep inflation down was holding down wages to achieve any kind of profit. The steel union was about to strike when President Truman declared that steel

INTRODUCTION Industrial psychology is concerned with people at work. It is also called personnel psychology. A closely related field is known as organizational psychology. Traditionally, industrial psychologists have assessed differences among individual workers and have evaluated individual jobs. Organizational psychologists generally seek to understand how workers function in an organization, and how the organization functions in society.

COMPETITIVE ADVANTAGE This paper addresses the use of Porter’s Five Forces model and how it can benefit Broadway Cafe by identifying and analyzing the effect of these forces on its business. The benefits include improved decision making, faster time to market, better productivity, improved competitive advantage, more profits and greater customer satisfaction. It also helps in achieving operational excellence.

Coal Mining Coal, a mineral I have discussed previously, is necessary to our everyday lives. Coal is an incredible source of energy; it heats our houses and buildings, and also fuels stoves. You may often wonder where this extremely useful mineral comes from. Coal does not just appear; it needs to be mined through a process which results in our being able to utilize it. Coal mining is fairly inexpensive, is carried out on a large scale and can be mined in either underground or surface mines.