Porter's Five Force Analysis

Porter’s Five Forces is a framework that consists of five competitive forces, threat of entry, power of supplier and buyer, threat of substitution and competitive rivalry. These forces facilitate the analysis of the task environment of an industry or company (Wheelen and Hunger, 2009).

Porter’s Five Forces Model is one of the best-known analysis tool to see the level of competition a company has with its competitors. Chick-fil-A is a strong company and has been around for a long time. Chick-fil-A still has a huge competition in the fast food market. This being the case the company has to analyze the whole market. The threat of entrants is always

The ‘five forces’ model was created by Michael Porter of Harvard University and consists of three horizontal forces of competition, as well as two vertical forces of competition. The horizontal forces of competition are comprised of: 1) the threat of new entrants; 2) the threat of rivals who have already been established; and 3) the threat of substitute services or products. The vertical forces of competition include the bargaining power of customers, as well as the bargaining power of suppliers.

In the five forces model by Porter, four forces will influence the fifth one (see the model on the right). The bargaining power of suppliers, the bargaining power of customers, the threat of substitute products and the threat of new entrants will influence the fifth force: the level of competition in the industry (S.Clegg, C.Carter, M.Kornberger, & J.Scheitzer, 2011).

Answer: According to professor Michael Porter, the five forces are suppliers, customers, competitors, new entrants, and substitutes. The “plus” part of the model takes into account the elements outside the industry like technology, population and security, politics and economics, energy, and environment.

Five Forces Model Industry competitors, First, Sears Holdings is in highly competitive retail markets, both with their Sears and Kmart stores. Their industry competitors consist of companies who compete with every aspect of their store such as Big Lots, Walmart, and Target in relation to Kmart and then J. C. Penney in relation to Sears. Majority of the loss of sales and abundance of unprofitable stores has been due to losing out to the competition in this highly competitive retail industry. While Sears Holdings has been having nothing short of a disaster with their revenues declining, their competitors in general to the ones listed, have maintained and grown in regards of revenue for the past three-year span.

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 force model on the next page shows that rivalry is intense and the threat of substitutes is high. To succeed these issues, we should concentrate on guest’s loyalty and distinguishing our business from our competitors through our social media sites.

The five forces model helps determine an industry’s attractiveness and long-term profitability. The five forces are: degree of rivalry within the industry, the threat of substitutes, the threat of new entrants, bargaining power of buyers, and bargaining power of supplier.

I am going to conduct a 5-forces analysis of the industry "Fresh Connections" is involved in, that is to say the fresh food industry. These forces help us to analyse everything from the intensity of competition to the profitability and attractiveness of the industry. We are going to use this model to better understand the industry in which "Fresh Connections" operates. So, the five forces are rivalry, buyer power, supplier power, barriers to entry and threat of substitutes.

PORTER’S 5 FORCES ANALYSIS: Overall, we found this to be an unattractive industry due to the following factors:

Originally developed by Harvard Business School's Michael E. Porter in 1979, the five forces model looks at five specific factors that help determine whether or not a business can be profitable based on other businesses in the industry.

Porter 's Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes.

Porter's First force is the threat of Potential Entrants. Statistics have shown the industry to be slowing down, therefore making competition high and the threat of new entrants low. Broadway Cafe has a small market presence, but the presence of its competitors like Starbucks

The five forces is a framework created to help analyze the level of competition and their business strategy within an industry. An industry structure can drive competition and profitability. The structure of the five forces differs by industry. In the pharmaceutical market, powerful rivalry between dominant manufactures such as Johnson & Johnson, Novartis and Pfizer and the bargain power of hospital and pharmacies that places huge orders for pharmaceuticals are strong, while the threat of substitutes, threat of entry and the power of the supplier are more gentle or benevolent. Companies aware of the five forces help them understand the structure of its industry and establish a position that allows them to be more profitable.