Michael Porter’s five competitive model forces: (1) the threats of new entrants, (2) the bargaining power of suppliers, (3) the bargaining power of buyers, (4) the threats of substitute products and services, and (5) rivalry among competitors (Kinicki & Williams, 2014, p. 173-174; O’Brien, & Marakas, 2011, p. 46). This model is a starting pointing for identifying the company’s strengths and weaknesses by looking at the industry and itself. This model was developed initially for brick-and-mortar entities; it provides an analysis of the consumer, supplier, new markets, competitors market entry and product domination and substitutes (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). Each of the five (5) elements of Porter’s competitive forces
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When consumers can compare products and services from multiple competitors quickly, this can directly affect the profitability of the market sector. The influx of substitute products and service can be a win for the customer/buyer, but it can destroy the competitor base and market.
The competitive rivalry examines other entities in the industry or marketplace looking directly at how they can impact market share. Real competition in a market sector is when customers have a few companies selling the same products and services and can switch from one competitor to another with minimal cost to the customer (Kinicki & Williams, 2014). Look at this as a pricing war, which is good for the consumer, but ultimately affect the seller’s profit of all involved.
Additional, Mr. Porter felt that a SWOT analysis of the five competitive forces would position the organization of formula better strategies (Kinicki & Williams, 2014, p. 174). This analysis will provide valuable information about its current strengths, weaknesses, opportunities, and threats (Al-Araki, 2013).
Industry/sector: Travel (brick and mortar/brick and
When consumers can compare products and services from multiple competitors quickly, this can directly affect the profitability of the market sector. The influx of substitute products and service can be a win for the customer/buyer, but it can destroy the competitor base and market.
The competitive rivalry examines other entities in the industry or marketplace looking directly at how they can impact market share. Real competition in a market sector is when customers have a few companies selling the same products and services and can switch from one competitor to another with minimal cost to the customer (Kinicki & Williams, 2014). Look at this as a pricing war, which is good for the consumer, but ultimately affect the seller’s profit of all involved.
Additional, Mr. Porter felt that a SWOT analysis of the five competitive forces would position the organization of formula better strategies (Kinicki & Williams, 2014, p. 174). This analysis will provide valuable information about its current strengths, weaknesses, opportunities, and threats (Al-Araki, 2013).
Industry/sector: Travel (brick and mortar/brick and