Porter\'s five forces model is the most popular tool for analyzing the level of
ID: 355934 • Letter: P
Question
Porter's five forces model is the most popular tool for analyzing the level of competition in an industry. Considering your own industries, answer the following questions:
Which are the primary sources of competitive intensity?
Do you deal with powerful buyers or suppliers?
Are there ready substitutes for your product, or is it unique?
What is the potential for new entrants?
Considering these factors, examine the degree of rivalry and the nature of competition in our industries and which factors are most significant. Reflect on how the course material plays out in your organization or organizations with which you are familiar.
** United States Department of Agriculture is the "industry". 350 WORD Minimum, no copy and paste. Orginial words only. APA format, list in text citations and references
Explanation / Answer
Porter's Five forces model includes these things :
Porter has developed these models for generating a competetive advantage for the organization over its competetiors.These models helps in making a stratergy to fight in a competetive market.It helps in getting a clear image for the forces which are prevailing in the market and helps in coping up with the market situation to get a profitable business run.
The industry which I run is textile industry.Textile industry is growing on a very fast pace as the daily fashion changes on a rapid rate.Now-a-days we are noticing that there is a lot of materials which are selling online.The primary souce of competetive intensity is making the product available online.
Yes,we deal with competitive buyers and suppliers as there are a lot of online portal selling the same type of textile materials and offer a wide range of products with a lot of marging on the rate of product.
Yes,there are substitutes availbale but we focus on delivering the materials on much cheaper rate as compared to the other suppliers.
The new entrants are emerging on a high rate with a lot of new ideas and techniques.But we are focussing upon our technology renewed time to time and providing that material whcih others cannnot provide.
The above mentioned points clearly says that we have to develop our industry before our competetiors can do that.The Porter's model clearly help us n this direction.
We nedd to focus much upon the quality of the product which we are delivering to our customer.Also the price must be kept reasobable so that we can reach a lot of market segment so that profitability can be maintained.
Textile industry is a market of perfect competetion and a lot of efforts are made for increasing the profitability.