Discussion (40 points) – Using an industry with which you are familiar, apply ea
ID: 423255 • Letter: D
Question
Discussion (40 points) – Using an industry with which you are familiar, apply each element of Porter’s Five Forces model (Porter, 2008) to the industry by briefly explaining how each element affects the industry. Selecting one company from within that industry, select 2-3 of the 8 general environment trends (Dyer et al, (2017), Chapt 2, pp. 31-36 [eBook], including the 8 items in the outer edge of Figure 2.3) that are having or could have the most impact on the company. Justify your selection of trends using sources. Make your initial post by 11:59 p.m.,Thursday, CT. (25points) Respond to classmates over more than a single day by11:59 p.m., Sunday, CT. (15 points)
Explanation / Answer
By taking into consideration the latest global trend of online platform of product sales, we can exemplify and discuss about the various aspects of the Portal’s Model.
Online Shopping has become more dominant in the society owing to the feasibility and options to chose from.
Whereas, if to be thought from the different perspectives that Porter’s Model talks of, they contribute as determining factors in sustaining the Business. The micro elements are overviewed as : Bargaining of the Suppliers, Threat of substitutes, Bargaining of Buyers,Threat of new Entrants and Industry Rivalry.
To begin with the stock and suppliers, the fist obstacle that has to be won over is getting the products at the right price and having a healthy bargaining with the suppliers in a way to acquire the products at a price on which there can be put a fare share of profit margin as the sell price.
Next is the Substitution wherein another product serves the same purpose, usage and need. A seller could be prepared with inventory to cater to the needs of the society which might be consequently outruled by another replacing product doing the same work using a cheaper technology.
Next comes the price sensitivity issues of the buyers and the degree of bargaining based on the existing knowledge of the respective prices in the available market.
New Entrants play a indirectly proportional role in creating a nuisance and trouble making of the existing market holders. They come into the market with the detailed vivid study of each branding and pricing and bring in the best strategies to attract the customers attention, thereby jeopardizing the already lined up potential sellers.
Rest remains al, in the power of the rival industry who are always in a fine tuned competition and always trying to win it over by better advertising, marketing and Innovation. Most importantly low cost.
The five major components play an important rule is downsiding or dominating the market and in E-Global platform, that’s one thing in common as in new brands and products and pricing are launching in day in day out basis thereby giving out major accomplishment goals to the existing sellers.