5 forces of Porter Rolls Royce Essay

1645 Words Dec 3rd, 2013 7 Pages
Rolls Royce on the 5 (+1) forces of Porter matrice:

For this case I will use the company Rolls Royce. Not the one which build cars but the historic one which create motors for aviation, marine or energetic solution.

First let’s have a presentation of this company:

Rolls Royce was founded by two men in 1906 in England, Henry Royce and Charles Rolls. They were producing motors for planes. The important thing we have to know is their motors were used a lot during the two World War. For example during the first one, half of the allies planes were using Rolls Royce motor. During the second one, many of best planes of US and British army used Rolls Royce motors. They also built many motors for the marine army.
After the two World
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If tomorrow someone wants to invest on this production, they will have to pay lot of money to acquire this expertise. The second thing is it’s a finial of the British industry, even the government took some part of this company. So that’s help when a government invest on a company. I’m not sure they will do the same thing for another company today.
Some emergent country try to attack the market, I’m thinking about India, “Russia”, or Brazil, but for the moment they can only take advantage by the price and for this kind of investment, motors customers want quality.

Threat of substitute product,
It’s the same thing than up, Rolls Royce are in a capital industry. Today we didn’t find another solution of the motor. So if we really want to find a substitute product, we can take the example of their marine division, sail boat can be a substitute of motor boat. But even this possibility has limits, because most of sail boats have motors and some luxury sail yacht have a Rolls Royce motor. For their Aerospatiale division, there are no substitute product yet. Some studies are thinking about create clean motors, like water motors, Rolls Royce take part of these studies and pay lot of money in research and development to not miss the wind of change. For now they still have some good years with their best seller, the kerosene motor!

Bargaining power of suppliers,
Rolls Royce is pretty on the top of the supplier chain. Even if they always have

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