...Porter’s Five Competitive Forces Click Link Below To Buy: http://hwaid.com/shop/porters-five-competitive-forces/ A key component of strategic analysis and planning is the assessment of a company’s competitive advantage (referred to by some as competitive position). In the article by Michael Porter, he identifies five potential sources of competitive strength or vulnerability: Existing level of competitive rivalry in the industry Buyer bargaining power Supplier bargaining power Threat of substitute products Threat of new entrants Porter’s Competitive Forces model is an extension of his earlier work on strategy (Porter, M. E., 1996). For this Assignment, use this week's resources and any outside appropriate resources to prepare a competitive analysis for an existing product and complete the following: Imagine that you are asked to provide a presentation on an organization’s competitive advantage to the organization’s board. To choose an organization, you may select your own or one with which you are familiar. Question: Submit a PowerPoint presentation (9–12 slides excluding title and reference slides, consistent with APA guidelines) that examines the competitive advantage of your chosen organization. Include the following: Describe the target market and apparent marketing mix of your chosen organization. Conduct a five forces analysis for the selected organization. Choose a competitor for the selected organization and conduct a five forces analysis for...
Words: 287 - Pages: 2
...IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 15, Issue 1 (Nov. - Dec. 2013), PP 11-17 www.iosrjournals.org Porter’s Generic Competitive Strategies Ritika Tanwar Assistant Professor Department of Commerce Dyal Singh College (M) Delhi University Abstract Generic Competitive Strategy: Basically, strategy is about two things: deciding where you want your business to go, and deciding how to get there. A more complete definition is based on competitive advantage, the object of most corporate strategy: “Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. There are two basic types of competitive advantage: cost leadership and differentiation.” Michael Porter Competitive strategies involve taking offensive or defensive actions to create a defendable position in the industry. Generic strategies can help the organization to cope with the five competitive forces in the industry and do better than other organization in the industry. Generic strategies include ‘overall cost leadership’, ‘differentiation’, and ‘focus’. Generally firms pursue only one of the above generic strategies. However some firms make an effort to pursue only one of the above generic strategies...
Words: 5293 - Pages: 22
...Porter’s Competitive Forces Model Porter’s competitive forces model provides an overall view of the firm, its competitors, and the firm’s environment. In this model, the strategic position of the firm, and its strategies, are determined by competition with its traditional direct competitors. Porter’s model is about the firm’s general business environment. Five competitive forces in this model greatly affect and shape the firm. They are, traditional competitors, new market entrants, substitute products and services, customers, and suppliers. The competitive forces model describes competitive advantage as, firms doing better than the other because of access to more resources, or using commonly available resources more efficiently. With the help of a greater knowledge of information and resources, a firm’s revenue and productivity will grow. This positively effects a firm and helps to achieve more compared to competitors. Four competitive strategies that firms can pursue and how information systems support them: 1. Low-cost leadership 2. Product differentiation 3. Focus on market niche 4. Strengthen customer and supplier intimacy Information systems support the “Low-cost leadership” strategy through production. Products and services are produced at a lower price than competitors and enhances the quality and level of service. The “Product differentiation” strategy is supported by information systems by allowing the assembly of new products and services. Which...
Words: 264 - Pages: 2
...Critically evaluate Porter’s Diamond of National Competitive Advantage as an aid to understanding national competitiveness. Table of Contents Table of Contents 2 1. The diamond model by Michael Porter 3 1.1 Introduction 3 1.2 Diamond model Theory 4 1.2.1 Factor Condition 4 1.2.2 Demand conditions 5 1.2.3 Firm strategy, structure and rivalry 5 1.2.4 Related and supported industries 6 1.2.5 The role of Government 6 1.3 Criticism of the framework 7 1.4 Practical Example 7 1.5 Conclusion 8 1 2 3 4 5 6 7 8 9 1. The diamond model by Michael Porter 1 1.1 Introduction According to Recklies (2001), increasingly corporate strategies have to be seen in global context and even if an organization does not plan to import or to export has to look at an international business environment, in which actions of competitors, buyers, sellers, new entrants of providers of substitutes may influence the domestic market and information technology has been reinforcing this trend. The classical models and theories related to international trade before Michael Porter’s Diamond theory, mainly proposed that the comparative advantage resides in the factors endowments that a country may be fortunate enough to inherit and these factors mainly consisted of land, natural resources, labour and the size of the local population but Porter argued though his...
Words: 2779 - Pages: 12
...Zipcar Porter’s Five Forces of Competitive Position for Zipcar Porter’s five forces analysis is supposed to provide a very simple perspective for assessing and analyzing the competitive strength and position of a company, in this case Zipcar namely. The analysis can be outlined as follows. The competitive rivalry force for Zipcar is moderate to strong. The major competition is faced from other rental agencies that provide similar services. Nevertheless, the company has a competitive advantage over its competitors due to the flexibility of the service it provides to its customers. Other competitors for Zipcar include transportation services providers such as taxi cabs and public transportation. Nevertheless, the advantage of Zipcar over this competitor segment lies within availability virtually in any location in a dense area as well as relative cheapness of the service if a travel to long distance is required, which would add to the customer cost if a taxi, for example, was chosen. Supplier power in the competitive position for Zipcar is evaluated to be as moderate. The company provides the car rental services with its own cars, which provides for no delays in car availability from third parties. Furthermore, the company supports strong connections with petrol stations as well as technical services that guarantee in time fuel supply as well as car repairs when needed. Buyer power in the competitive position of Zipcar is strong. Buyers may...
Words: 650 - Pages: 3
...[pic]Porter's Four Corners Model Porter’s four corners model is a predictive tool designed by Michael Porter that helps in determining a competitor’s course of action. Unlike other predictive models which predominantly rely on a firm’s current strategy and capabilities to determine future strategy, Porter’s model additionally calls for an understanding of what motivates the competitor. This added dimension of understanding a competitor's internal culture, value system, mindset and assumptions help in determining a much more accurate and realistic reading of a competitor’s possible reactions in a given situation. The Four Corners Motivation – drivers This helps in determining competitor's action by understanding their goals (both strategic and tactical) and their current position vis-à-vis their goals. A wide gap between the two could mean the competitor is highly likely to react to any external threat that comes in its way, whereas a narrower gap is likely to produce a defensive strategy. Question to be answered here is: What is it that drives the competitor? These drivers can be at various levels and dimensions and can provide insights into future goals. Motivation – Management Assumptions The perceptions and assumptions the competitor has about itself and its industry would shape strategy. This corner includes determining the competitor's perception of its strengths and weaknesses, organization culture and their beliefs about competitor's goals. If the competitor thinks...
Words: 890 - Pages: 4
...develop an exhaustive list of every possible factor that could influence the business. 4) External audits attempt to identify key variables that offer actionable responses. 5) Five major categories of external variables are: 1) economic forces, 2) social and cultural forces, 3) political, governmental and legal forces, 4) technological forces and 5) demographic forces. 6) As many managers and employees as possible should be involved in the process of performing an external audit. 7) To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends. 8) Freund argues that key external factors must not be hierarchical. 9) The I/O approach to competitive advantage advocates that internal factors are more important than external factors in a firm achieving competitive advantage. 10) An economic trend in America is the increasing numbers of two-income households. 11) Economic factors do not have much impact on the attractiveness of strategies. 12) An increase in interest rates is directly related to an increase in discretionary income and an increase in the demand for discretionary goods. 13) Motor vehicle firms in the United States are vulnerable when the value of the dollar falls. 14) A low value of the dollar means lower...
Words: 991 - Pages: 4
...develop an exhaustive list of every possible factor that could influence the business. 4) External audits attempt to identify key variables that offer actionable responses. 5) Five major categories of external variables are: 1) economic forces, 2) social and cultural forces, 3) political, governmental and legal forces, 4) technological forces and 5) demographic forces. 6) As many managers and employees as possible should be involved in the process of performing an external audit. 7) To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends. 8) Freund argues that key external factors must not be hierarchical. 9) The I/O approach to competitive advantage advocates that internal factors are more important than external factors in a firm achieving competitive advantage. 10) An economic trend in America is the increasing numbers of two-income households. 11) Economic factors do not have much impact on the attractiveness of strategies. 12) An increase in interest rates is directly related to an increase in discretionary income and an increase in the demand for discretionary goods. 13) Motor vehicle firms in the United States are vulnerable when the value of the dollar falls. 14) A low value of the dollar means lower...
Words: 991 - Pages: 4
...Analyzing Your Competition Overview Almost everyone in business understands the principle of trying to offer something better than what their competitors are offering. Gaining an advantage is the key to success and even survival. But many of the so-called advantages that businesses rely on are not sustainable. They can be easily copied, stolen or negated. Real competitive advantages — things like brand name recognition, patented manufacturing processes or exclusive rights to a scarce resource — cannot be easily copied. Every company has a unique set of strengths, and it's critical that you determine yours, as well as your competitors'. Hold a brainstorming session with your staff and advisors to perform a formal SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. This analysis helps you to see how your strengths stack up against your competitors' weaknesses and suggests ways to take advantage of marketplace opportunities. After you have performed the analysis, there are four basic competitive strategies to consider. 1. Become the low-cost supplier. By under-pricing the competition, you can achieve greater volume, which can drive your costs down even further by realizing economies of scale. Of course, it's important to still maintain a healthy profit margin so the key here is to lower costs, not just prices. 2. Achieve product or service quality differentiation. Think about the hundreds of companies that have achieved such differentiation for themselves...
Words: 10912 - Pages: 44
...The Sport of Dancing Courtney Packwood ENG-106/Professor Zafonte March 17, 2013 Dancers should be considered athletes as well as artists. Dancers must use their bodies to express emotions, tell a story, commit to years of physical training, develop stamina, work as a team, take care of their bodies, stretch to prevent injuries, and enter into competitions against other dancers. They deserve to be helped at the athletic office. The dance education majors are not even allowed to ask for an ice pack from the athletic trainers. Members of the Grand Canyon University Dance Team are considered athletes, while the Dance Education majors are not. Both programs involve dance training but yet the school team is the only one of the two that reaps the benefits of being an athlete. The label of dancing being an art or sport has been questioned for decades now but no one has given it a definitive answer. When looking up the definition for athlete, several interpretations are given; overall, the main idea of an athlete being, “a person who is trained or skilled in exercises, sports, or games requiring physical strength, agility, or stamina” according to the Webster dictionary. When comparing this definition to dancers, it is clear that they meet each of those standards. So, why are dancers being denied help from the athletic training office when they demonstrate comparable abilities in physical training, competition, teamwork, and dedication; just as much as any of the athletic teams on...
Words: 1247 - Pages: 5
...community that meets regularly at Club IT.” The club focuses on all music genres, which includes Hip- Hop, Techno, Electronica, MP3, and live bands. With these genres, the music caters to all people from young adults to older adults and single to married couples. Although the club is striving, Ruben and Lisa want their company analyzed for a more competitive advantage. As their intern, I will take a look at the company’s intranet resources, which is an internal network that only the owner’s and employees’ can access. The current intranet is a good resource of information, but it lack security. The access to the intranet needs to be accessible individually. The owners need to have their own login credentials with access to the information related to all the company’s information and employees’ information. The employees need to have their own login credentials as well, so they can access the necessary information related to their job title and personal information. One way to become more competitive is to take advantage of its information base to help a build a community with the support of IT. Several kinds of competitive information and strategies that Club IT can be gain by providing this service, for...
Words: 371 - Pages: 2
...Evaluate a Business Intelligence initiative that has been undertaken within your organization or one potential application of Business Intelligence within your organization? I work in the cruise industry. I never really knew how much Business Intelligence was a science. Granted, I knew we have analysts and copious amounts of data, but I never truly gave it much thought. After studying BI, I have come to realize BI is an essential aspect of my organization’s success. From measuring productivity of different departments (such as revenue, event planning, individual & groups reservations, cruising power, our company website, shipboard management, etc…) to understanding travel partner and guests needs and staying ahead of the competition, we wouldn’t survive without BI metrics and applications. Because I work in the event planning division of my company, I am not familiar with the names or metrics used to evaluate important data, but I do know from experience and part of my job function, reports and data gathered are used to make judgments and decisions about new products and constant improvements for existing services we currently provide. Surveys are completed by our travel partners and guests, and even employees. We compile reports and present them to management electronically. Our research, experience, and use of different applications, along with our IT departments, helps management and executives determine which direction to move forward. Feedback from our travel...
Words: 526 - Pages: 3
...premiere gourmet grocery store that offers shoppers the finest baked goods, meats, cheese and dairy, produce items and an assortment of domestic and imported wines. Kudler Fine Foods offers all customers a wonderful shopping experience and the finest quality of foods and wines. Leaving room to expand its current services and opening new locations. The company’s growth span is leading to an increased customer base. Kudler Fine Foods is increasing and looking to drive revenue upward while leaving the current prices as set. Kudler Fine Foods is ready to develop changes to increase their revenue . I will discuss in this paper the important elements needed in Kudler Fine Foods goal towards advancement in marketing and the role of using the competitive intelligence tactics. This could include other ways to successfully achieve goals of growth. Marketing Research “Although marketing research isn’t perfect, it seeks to reduce risk and uncertainty to improve decisions made by marketing managers” (Armstrong, , 2011) . Marketing research can help develop new product ideas and offer a fine tuning in slimming down products and services. Businesses use market research t o help determine who will be interested in purchasing their products and services. Marketing research will reach out to a target group of people based on certain feelings, needs, income and age. Mrs. Kudler conducted surveys to reach out to customer and receive feedback in areas of potential improvements. Pointing them...
Words: 963 - Pages: 4
...Competitive Landscape When it comes to this type of argument it is very compelling to understand what needs to be done here. It is very important for a company to be able to understand what their competitive landscape market is and how they are going to use it. Within the Jackson Hewitt Company, they have many different competitors that offer similar to the same type of services they do. So the question here really is how Jackson Hewitt markets themselves and the new service of financial services that makes them more appealing to the customer. Marketing is the key, the whole purpose of why a company has marketing teams. Here are some examples of Jackson Hewitt’s competitive landscape. So let’s start out with the most obvious question, what is competitive landscape. “A competitive landscape (also known as “competitive intelligence”) provides cohesive, detailed information on what your competitors are doing including” (Koch, 2009). So when doing the research on Jackson Hewitt, I had come to a conclusion that they do not offer financial advisory to their customer such as some of their competitors do like H and R Block. So when a company wants to start up a new service, they need to research their competitor s to find out exactly what they are offering and the pricing of those services. A company needs to offer more for less in order to be competitive in a field that is already crowded. “In gathering competitive intelligence and creating your competitive landscape, you will...
Words: 449 - Pages: 2
...Competitive Algorithms for VWAP and Limit Order Trading Sham M. Kakade Michael Kearns Computer and Information Science University of Pennsylvania Computer and Information Science University of Pennsylvania kakade@linc.cis.upenn.edu mkearns@cis.upenn.edu Yishay Mansour Luis E. Ortiz Computer Science Tel Aviv University Computer and Information Science University of Pennsylvania mansour@post.tau.ac.il leortiz@linc.cis.upenn.edu ABSTRACT We introduce new online models for two important aspects of modern financial markets: Volume Weighted Average Price trading and limit order books. We provide an extensive study of competitive algorithms in these models and relate them to earlier online algorithms for stock trading. Categories and Subject Descriptors F.2 [Analysis of Algorithms and Problem Complexity]: Miscellaneous; J.4 [Social and Behavioral Sciences]: Economics General Terms Algorithms, Economics Keywords Online Trading, Competitive Analysis, VWAP 1. INTRODUCTION While popular images of Wall Street often depict swashbuckling traders boldly making large gambles on just their market intuitions, the vast majority of trading is actually considerably more technical and constrained. The constraints often derive from a complex combination of business, regulatory and institutional issues, and result in certain kinds of “standard” trading strategies or criteria that invite algorithmic analysis. One of the most common...
Words: 9064 - Pages: 37
