Upload
sandesh-ghosal
View
27.927
Download
1
Embed Size (px)
Citation preview
1
PORTER’S 5 FORCES
MODEL
2
3
4
RETAILING INDUSTRY
5
THREAT OF NEW ENTRANTS • Independent retailers decreased. • Chain stores • Centralized buying competitive advantage
THREAT OF SUBSTITUTES • Deal with various products. • Chances of shifting is high.
POWER OF SUPPLIERS • Historically, exploit the relationship. • Less power
POWER OF BUYERS • Lower bargaining power • High quality products – retailers’ honest
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY • Cut throat Competition • Reduce – frequent fliers, memberships, loyalty cards, etc..
TELECOMMUNICATION INDUSTRY
6
7
THREAT OF NEW ENTRANTS • Ownership of a telecom license • Finance
THREAT OF SUBSTITUTES • Cable TV – direct lines, broadband services
POWER OF SUPPLIERS • Less power • Talented managers & engineers
POWER OF BUYERS • Increased choice – high bargaining power • Switching costs – individual & large business customers.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY • Usage of phone, competition is high • Price • Value added services • Profitability low
8
Airline Industry
9
THREAT OF NEW ENTRANTS • Saturated Market • Brand Name & Recognition
THREAT OF SUBSTITUTES • Time, Money • Personal References & convenience
POWER OF SUPPLIERS • Dominated – Boeing & Airbus • Not much of difference.
POWER OF BUYERS • Low bargaining • Consider Service of airline too.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY • High competition • Cut throat competition • Low Profitability
10
Pharma Industry
11
THREAT OF NEW ENTRANTS • Very low barriers to entry
• Government policies supportive
• Entry price regulation exists
• Economies of scale exist
• Proprietary technology
• Product existence
THREATS OF SUBSTITUTES • No substitutes for the medicines
• Biotechnology is a threat to synthetic pharma products
POWER OF SUPPLIERS • Volume benefits occur
• Inputs standard, available locally
• Numerous suppliers-switching cost low
• Suppliers can go for forward integration
• Raw material cost constitute more than 50% of the total expenses
POWER OF BUYERS • End consumers do not have bargaining power
• Brand identity exists but is in the hands of Influencer (Doctors)
• Price Sensitivity is less
• Highly fragmented market, so buyer concentration v/s industry is low
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY • Industry Competition
• Highly competitive.
• Top five players have mere 18% market share
• 18% market share
• Lower fixed cost and high working capital
Indian Automobile Industry
12
13
THREAT OF NEW ENTRANTS
• Substantial entry
• New company requires high capital.
• Achieving minimum efficient scale is prohibitive
• Enter through strategic partnership, buying, merging
• Domestic market works well locally than globally
THREAT OF SUBSTITUTES • Fairly mild
• Other forms of transportation available
POWER OF SUPPLIERS • the power axis is tipped in industry
• Powerful buyers dictate their terms to supplier
POWER OF BUYERS • The power axis is tipped in the consumers’ favor
• Low switching costs from among competing brands.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY • Intense due to the entry of foreign companies
• Rivalry - high with any product being matched in a few months by the competitors
• Technical capabilities
• Collaboration with international players
THANK YOU
14