Porter\'s five forces of Dunkin Brands Group Inc. Here is a five forces: 1.Threa
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Question
Porter's five forces of Dunkin Brands Group Inc. Here is a five forces: 1.Threat of New Entrants 2.Bargaining Power of Suppliers 3.Bargaining Power of Buyers 4.Threat from Substitute Products 5.Rivalry among the existing players.I want know each force of Dunkin Brands. Porter's five forces of Dunkin Brands Group Inc. Here is a five forces: 1.Threat of New Entrants 2.Bargaining Power of Suppliers 3.Bargaining Power of Buyers 4.Threat from Substitute Products 5.Rivalry among the existing players.
I want know each force of Dunkin Brands. Porter's five forces of Dunkin Brands Group Inc. Here is a five forces: 1.Threat of New Entrants 2.Bargaining Power of Suppliers 3.Bargaining Power of Buyers 4.Threat from Substitute Products 5.Rivalry among the existing players.
I want know each force of Dunkin Brands. Here is a five forces: 1.Threat of New Entrants 2.Bargaining Power of Suppliers 3.Bargaining Power of Buyers 4.Threat from Substitute Products 5.Rivalry among the existing players. 1.Threat of New Entrants 2.Bargaining Power of Suppliers 3.Bargaining Power of Buyers 4.Threat from Substitute Products 5.Rivalry among the existing players.
I want know each force of Dunkin Brands.
Explanation / Answer
Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry.
Threats of New Entrants
New entrants in Restaurants brings innovation, new ways of doing things and put pressure on Dunkin' Brands Group, Inc. through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Dunkin' Brands Group, Inc. has to manage all these challenges and build effective barriers to safeguard its competitive edge.
Bargaining Power of Suppliers
All most all the companies in the Restaurants industry buy their raw material from numerous suppliers. Suppliers in dominant position can decrease the margins Dunkin' Brands Group, Inc. can earn in the market. Powerful suppliers in Services sector use their negotiating power to extract higher prices from the firms in Restaurants field. The overall impact of higher supplier bargaining power is that it lowers the overall profitability of Restaurants.
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by paying the minimum price as possible. This put pressure on Dunkin' Brands Group, Inc. profitability in the long run. The smaller and more powerful the customer base is of Dunkin' Brands Group, Inc. the higher the bargaining power of the customers and higher their ability to seek increasing discounts and offers.
Threats of Substitute Products or Services
When a new product or service meets a similar customer needs in different ways, industry profitability suffers. For example services like Dropbox and Google Drive are substitute to storage hardware drives. The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry.
Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry. Dunkin' Brands Group, Inc. operates in a very competitive Restaurants industry. This competition does take toll on the overall long term profitability of the organization.