...Porter’s five forces Michael Porter developed a framework consisting of five competitive forces, which analyze how industry factors impact a company’s strategy. These factors are: threat of new entrants, power of buyers, power of suppliers, availability of substitutes and competitive rivalry. Threat of new entrants There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage. Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces. Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has lot of copyright and...
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...strategic business units. The corporation that will be examined is Proctor and Gamble. This study will begin by understanding the parent corporation through its history, its basic or generic corporate strategy, the current structure of the corporation, and its overarching business model. The case study will then thoroughly examine the selected strategic business unit to include its value chain, strengths weaknesses opportunities and threats (SWOT), marketing and sales, comparison to competitors, stock trends and shareholder value. In order to complete this study the effects of corporate parenting strategy, an examination of its resources and capabilities, and review of recent and emerging trends within the industry must also be examined. However, before this paper can delve into Proctor and Gamble and its strategic business unit basic theory and business analysis techniques must be determined and defined. The different theories and analysis techniques that will be used are Value Chain Analysis, Corporate Parenting Analysis, SWOT Analysis, and analysis of corporate resources and capabilities. These will be evaluated using the techniques presented by Thompson, Peteraf, Strickland and Gamble (2013) including their six steps to assessing corporate strategy and using Porter’s five forces model. Business Theories and Analysis Techniques According to Thompson, Peteraf, Strickland and Gamble (2013) an analysis should include answering and examining six questions. First, how...
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...per capita income of people and increasing awareness through advertisements, print media, etc is increasing the demand for oral care products. This marks a sharp transition from use of tooth powders to the use of value added toothpastes like mouth washes, gels and teeth whitening products. Currently the size of global oral care market is about $30 billion. Out of this, India contributes 5% of the total market which estimates the Indian oral care market to be $1.5 billion. The Indian oral care market registered an annual growth of 13% during FY 13. On the other hand, the growth in global market was 3% during the same period. The major players in the Indian Oral care industry are: Colgate, Unilever, Dabur and GlaxoSmithKline (GSK). P&G is a new entrant with the launch of Oral B Pro-Health in July‘13 in the Indian market. According to company sources, it will be available in mint flavour with the specifications : 140 gms (for Rs. 98) and 75 gms (for Rs. 59). In the first month, the company registered a market share of 0.2% in the first month. The key factors responsible for attracting global players like Proctor & Gamble to the Indian market are i) Increasing demand from rural India – Only 42% of the...
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...per capita income of people and increasing awareness through advertisements, print media, etc is increasing the demand for oral care products. This marks a sharp transition from use of tooth powders to the use of value added toothpastes like mouth washes, gels and teeth whitening products. Currently the size of global oral care market is about $30 billion. Out of this, India contributes 5% of the total market which estimates the Indian oral care market to be $1.5 billion. The Indian oral care market registered an annual growth of 13% during FY 13. On the other hand, the growth in global market was 3% during the same period. The major players in the Indian Oral care industry are: Colgate, Unilever, Dabur and GlaxoSmithKline (GSK). P&G is a new entrant with the launch of Oral B Pro-Health in July‘13 in the Indian market. According to company sources, it will be available in mint flavour with the specifications : 140 gms (for Rs. 98) and 75 gms (for Rs. 59). In the first month, the company registered a market share of 0.2% in the first month. The key factors responsible for attracting global players like Proctor & Gamble to the Indian market are i) Increasing demand from rural India – Only 42% of the...
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...ASSIGNMENT – UNIVERSITY OF BALLARAT CHINTHAKA ARIYAPALA – ID 30100162 Brief Content Topic Page 1. INTRODUCTION...………………………………………………………………………….. 3 2. VALUE CHAIN FRAMEWORK-CRITIQUE…………………………………………………….. 3 3. MAIN ASPECT OF VALUE CHAIN ANALYSIS…………………………………………………. 3 4. PRIMARY ACTIVITIES…………………………………………………………………………………. 4 5. SUPPORT ACTIVITIES………………………………………………………………….…………. 5 6. LIMITATION OF VALUE CHAIN ANALYSIS………………………………………………………. 7 7. COMPETENCIES……………………………………………………………………………… 8 8. INTERNAL ANALYSIS THROUGH SWOT ANALYSIS……………………………………… 8 9. VALUE CHAIN ANALYSIS……………………………………………………………………….. 9 10. CONCLUTION…………………………………………………………………………………….……. 11 11. REFERENCES……………………………………………………………………………….…………. 13 Introduction The value chain approach was introduced by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilized to develop an organization’s sustainable competitive advantage in the business arena of the 21st C. All organizations consist of activities that link together to develop the value of the business, and together these activities form the organization’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch, 2003). The value chain framework has been used as a powerful...
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...1. Executive Summary of the Marketing Plan Parayem Solutions LTD has decided to launch a new web-based data sharing site with multiple functionality. The product will be new feature on Surreylearn platform. The marketing plan will have a market summery to introduce the market. The potential and key trends of the market will be evaluated. A consumer analysis and industry analysis using Porters Five forces will look into the external factors and the SWOT analysis will examine the idea of Gerraroom. A marketing strategy including a product positioning and a pricing strategy will be comprised. Further a communication strategy consisting of personal selling and events will show an overview of the action plan that the compa 3. Consumer analysis 3.1 Key figures, Trends and movements Almost 65% of the online population (54 million) (Wiki) have used faced book in the past month, (95%) and (74%) between the ages of 16-20, 21-24 respectively in the younger generation category. Youtube comes second with (50%), twitter (23%) windows live (14%), Linkedin (13%), google+ (12%) and Spotify (10%). Moneysavingexpert.com has as many users as Twitter. Spotify primarily a music service provider with users now able to see friends listing habits and share music via face book with 10% of their users spending 14 hours a week using their service. (YouGov.2013) About 25% of Facebook users have said that they use Facebook less compared to 12 months ago, with a further 19% expected to use the site...
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...1. Introduction Primark is an Irish clothing retailer, operating in Europe, in countries such as Germany, Spain, Ireland and United Kingdom. It is a subsidiary of Associated British Foods (ABF), a British multinational food processing and retailing company. Primark first open in Dublin 1969 under the name Penney’s, and have retained the name till this day in Ireland. Over the years Primark have expanded by buying out their competitors such as British Home Stores (BHS) and Clemens and August (C&A), they now have 257 stores across Europe (Primark, 2013). Primark sells clothes that are economical affordable. The company sources cheaply, using simple designs and fabrics in the most popular sizes and buys stock in bulk. Primark core competence is in their distribution change, the source all their products (Primark, 2013). Presently Primark Clothings are worn all over the world. However, Primark only has stores and outlets in Europe. This report proposes Primark entry into the Nigerian retail market using two P’s (Promotions and Product), the marketing mix, marketing planning, entry and analysis of the cultural factors that may affect the process. 2. Nigerian Retail Industry and Nigeria’s retail sector is undergoing change with international retail brands entering the country, new malls being constructed and the transformation of informal markets into more modern facilities. Shoprite a South African retailer and the biggest on the continent have been in operations in Nigeria...
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...5.1. SWOT Analysis 5 - 10 5.2. Financial Ratios 11 - 14 5.3. Porter Five Forces Analysis 14 - 16 5. Strategic Formulation 16 - 17 6.4. Recommendation for Alternative Strategies 17 - 19 6.5. Selection of Alternative Strategy 19 6. Strategic Implementation 19 - 20 7. Evaluation and Control 20 - 22 8. Reference / Work Cited 23 - 26 1. Executive Summary The objective of this case study is to assess the Procter & Gamble (P&G) corporation within its current environment by evaluation of its present performance with in its industry (Hunter, 2009). The assessment is based on information provided in the 2007 case study by Professor Shamsie and Eisner as well as various other secondary research materials. The objectives of the case analysis are to point out potential problems with P&G, conducting a SWOT analysis, strategic Porter Five Forces analysis, reviews various recommendations to the problems stated and implement a strategic recommendation. Regarding the problem in this case, as research will show, P&G’s faces three major problem areas within the organization. The problems reach from struggle with sustainable product innovation, increased reliance on one sided distribution channels and leadership in-cohesiveness within the company. To support these assumptions, comprehensive environmental scanning has been conducted through a SWOT and Porter...
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...the organizations planning process. In this literature review, the author will cover the SWOT Analysis, the PEST Analysis, the Value Chain Analysis, Porter’ Five Model, Four Corner’s Analysis, Boston Consulting Group Growth-Share Matrix, General Electric Matrix, and the Strategic Early Warning Systems. Hopefully, after the completion of this review the readers will have a clear understanding of how each of the analysis operate and can be applied to any organization or group. SWOT Analysis The SWOT Analysis is a technique that was developed by Albert Humphrey, who was in charge of a research project in the 1960’s and 1970’s at Stanford University using data from many organizations over the world. The ultimate goal of the study was to reveal why corporate planning was failing. After the results were formulated, Humphrey could identify many areas of concern and the tools Humphrey needed to investigate each of these areas were called a SOFT analysis (Ghazinoory, Zadeh & Memariani, 2007). Humphrey and the team used the categories “What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat.” In 1964, the F was changed to a W, and it has been that way ever since. After the change, the SWOT Analysis has been essential in the understanding of the situation of the organization. The SWOT has provided a solid foundation for anyone to review the marketing or strategic strategy...
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...Strategic Plan Critique Kern County Children and Families Commission Healthcare 634 - Strategic Plan Critique The Kern County Children and Families Commission (KCCFC) is one of many organizations created in response to the passage of Proposition 10 (The California Children and Families Act) in 1999. This proposition provides funding for efforts to provide all children, prenatal to five years, with a comprehensive system of early childhood developmental services. KCCFC created an initial strategic plan in 1999-2000, and has updated the plan twice on an annual basis. This critique reviews the second update which is dated September 4, 2002. The Executive Director and the board members were involved, along with representatives from the communities and the service providers. Community meetings were held to gather more input, and surveys were also given to service providers. A strategic planning workshop was held involving 65 people to develop a list of “issues, program areas, and objectives.” Vision and Mission Statements Strategic intent is defined as a “Big, Hairy, Audacious Goal” (Collins and Porras, 1996) that goes beyond the scope of a strategic plan for the next few years to a long-term goal that may take decades to reach. For KCCFC, the strategic intent is summed up in its vision statement: “[that] all Kern County children are born and thrive in supportive, safe, and loving homes and neighborhoods. They enter school...
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...analyses (PESTEL)…3 Ryanair’s internal strategic capabilities (SWOT)……...4 Ryanair’s strategic choice (Porter’s five forces)………5 VRIO framework……………………………………………..5 Rumelt’s criteria……………………………………………..6 Ryanair’s implementation of low cost strategy………..6 Recommendations………………………………………….6 Conclusion…………………………………………………...7 Reference List……………………………………………….7 Appendix………………………………....…………………..8 12.1 Presentation’s slides…………………………………8 Word count 1,744 (excluding reference list and appendix) 2 Besmir Lika 1.0 Introduction Strategic Management Individual Report Richard Jump The notion of underlying the concept of generic strategies is that competitive advantage is at the heart of any strategy, and achieving competitive advantage requires a firm to make a choice, if a firm is to attain competitive advantage, it must make a choice about the type of competitive advantage it seeks to attain and the scope within which it will attain it (Porter, 2004). The purpose of this report is to assess the key strategies chosen by Ryanair within cost leadership and that were likely to generate competitive advantages to the organisation. Furthermore, this paper will analyse the Ryanair’s decision to become a low cost airline through Porter’s five forces. It will help to understand the industry attractiveness and competitive forces. PEST analyses will be directed in order to analyse the business environment where Ryanair operates. SWOT analyses will be piloted to diagnose the strategic capabilities...
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...have also been discussed. Introduction The value chain approach was developed by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilised to develop an organisation’s sustainable competitive advantage in the business arena of the 21st C. All organisations consist of activities that link together to develop the value of the business, and together these activities form the organisation’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch, 2003). The value chain framework has been used as a powerful analysis tool for the strategic planning of an organisation for nearly two decades. The aim of the value chain framework is to maximise value creation while minimising costs (www.wikipedia.org). Main aspects of Value Chain AnalysisValue chain analysis is a powerful tool for managers to identify the key activities within the firm which form the value chain for that organisation, and have the potential of a sustainable competitive advantage for a company. Therein, competitive advantage of an organisation lies in its ability to perform crucial activities along the value chain better than its competitors. The value chain framework of Porter (1990) is “an interdependent system or...
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...operating in a particular marketplace. Students should acquire understanding of the role of marketing and also see that there is a wide range of information available from a variety of sources that can be used by organizations and practitioners for analysis. Components of the assignment 1 a – prepare a PowerPoint presentation including a MACRO environment analysis of a chosen international company (see appendix 1). Use relevant literature and approaches for preparing the macro analysis such as DESTEP, PEST, PESTL, etc. (5 points) 1 b – set up a SWOT analysis for the same company and present it using visual aids. Remember that in a SWOT analysis you identify strengths, weaknesses, market opportunities for your company, and threats to your business. (5 points) 1 c – prepare a PowerPoint presentation on the competitive landscape of the same company. Use the popular Porter Five Forces framework. In the Five Forces Model, Porter explains that in any industry there are five forces that influence what happens within the industry: 1. Existing companies, 2. potential new companies, 3. substitutes for products offered, 4. the suppliers, and 5. the customers. These five forces combine to make up the business environment. By studying the structure of and dynamics between these forces, you can discover opportunities for improving upon your marketing strategies. (5 points) 1 d - prepare a PowerPoint presentation including a GE/ McKinsey matrix of the chosen company....
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...A REPORT ON BUSINESS SYSTEMS AND INFORMATION MANAGEMENT BY JEANINE BANKS – 21739226 Word Count: 2, 133 CONTENTS 1. INTRODUCTION…………………………………………………………………………... | 3 | 2. FINDINGS2.1. GENERAL ENVIRONMENT……………………………………………………………….…………2.1.1. PEST Analysis…………………………………………………………………………………….2.1.2. SWOT Analysis..…………………………………………………………………………………. | 446 | 2.2. IMMEDIATE ENVIRONMENT……………………….…………………………..………………….2.2.1. Threat of Entry……..……………………………………………………………………………2.2.2. Power of Suppliers…..…………………………………………………………………………2.2.3. Power of Buyers…………...……………………………………………………………………2.2.4. Threat of Substitute……………………………………………………………………………2.2.5. Rivalry…………………..…………………………………………………………………………... | 777888 | 2.3. THE ORGANISATION…………………………………..………………………………………………2.3.1. Organisational Structure……………………………………………………………………..2.3.2. Walter’s Model…………………………………………………………………………………… | 8910 | 3. CONCLUSION……………………………………….…………………………………………………… | 12 | 4. APPENDIX…………………………………………………………………………………… | 13 | 5. BIBLIOGRAPHY…………………………………………………………………………… | 14 | 1. INTRODUCTION This report will discuss the impact of recent technological advancement in a particular industry. It will explore how the use of information systems, knowledge management and communication technology has enabled the implementation of business information and how it has impacted change on the organisation. It will explore the general environment, immediate environment and the organisation itself, each section will be...
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...Papers on Value chain analysis; Reports on Different Companies The article focuses on the main aspects of Value chain analysis. The activities entailed in the framework are discussed in detail, with respect to competitive strategies and value to the customer. The article includes tips for students and analysts on how to write a good Value chain analysis for a firm. Moreover, sources of findings information for value chain analysis have been discussed. The limitations of Value Chain analysis as a model have also been discussed. Introduction The value chain approach was developed by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilised to develop an organisation’s sustainable competitive advantage in the business arena of the 21st C. All organisations consist of activities that link together to develop the value of the business, and together these activities form the organisation’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch, 2003). The value chain framework has been used as a powerful analysis tool for the strategic planning of an organisation for nearly two decades. The aim of the value chain framework is to maximise value creation while minimising costs (www.wikipedia.org). Main aspects of Value Chain Analysis ...
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