The main objective of this report is the implementation of strategic marketing tools to uplift a business from losses making it attractive and bringing to profitable situation. The diagnosis and treatment tool has been used to bring changes and get competitive advantage.
This report is about my father-in-law’s business which is in a struggling phase under no profit-no loss circumstances and has no competitive advantage. My father-in-law is running a school from past four years but he is still struggling with this business. As a consultant, I studied their business using strategic marketing tools, which includes Porter’s five forces, positioning maps, strategic marketing grid to diagnose the reason for failure, used horizontal axis and untapped demand strategic tool as a treatment.
In the beginning I applied Porter’s five forces to understand market attractiveness, threats from competitors and bargaining power of suppliers as well as buyers. Entry into education industry for a new entrant is quite difficult as it involves high investment including some government policies. There is competition among existing businesses, power of buyer is more but supplier bargaining power is less. Positioning maps helped us in finding a gap in the market so that we are able to establish ourselves at low cost than competitors and above average quality.
With the help of treatment tools, we tried to look for other options in the market which are untouched and innovative…
The Porter's Five Forces Model
The Porter's Five Forces model helps an organization identify the weaknesses and strengths of their industry, in which they adjust their strategy to these outcomes to obtain maximum profitability. The model consists of 5 factors: competitive rivalry, supplier power, buyer power, threat of substitution and threat of new entry. This model will be use for the German automotive industry to see the steps Mercedes-Benz should take to improve.
Industry Analysis - Porter’s 5 forces
Michael Porter, an authority on competitive strategy and the Porter five forces analysis is a framework that may help Choo Bee Metal Industries Berhad to analyze level of competition within an industry and business strategy development. The Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. It is useful for Choo Bee Metal because it helps to understand both the strength of their current…
Assignment Task 2:
Porter’s Five Forces Analysis:
Porter’s five forces analysis explains the factors that put an impact on the competition in the determined industry or market. There are the five main factors that affect the competition in the different aspects of the market and disturb the actual working. Here are these porter’s five forces.
1. The Threat of Substitute Products:
In the competitive market, there is always a threat to the seller about the substitute that if he will increase the…
The firm thus faces vast competition from the market in relation to procurement of input and sale of output. Porter’s Five Forces Model identifies the five sources of competitive pressures affecting businesses (Porter, 1980).
Force Analysis presumes that there are five important factors that establish competitive power in a business state of affairs. These are:
1. Suppliers’ control: we evaluate how easily suppliers to drive up prices. If we have fewer supplier choices, and the more we need…
Awareness of the five forces
can help a company
understand the structure of its
industry and stake out a
position that is more
profitable and less vulnerable
The Five Competitive
Forces That Shape
by Michael E. Porter
Included with this full-text Harvard Business Review article:
1 Article Summary
The Idea in Brief—the core idea
The Idea in Practice—putting the idea to work
2 The Five Competitive Forces That Shape Strategy
Geert Hofstede created five dimensions to describe the different cultures around the world; individualistic/collectivistic, high or low power distance, high or low uncertainty avoidance, achievement/nurturing, and long-term or short-term orientation (Hofstede, 2016). Each of these values plays a major role in today’s workforce.
How Hofstede’s five dimensions affects the way managers use work groups in the United States. The United States is an individualistic country, managers will have to set…
Strategies are plans and visions a company constructs which will enable them to be successful and set apart from their competitive companies. In order for companies to be successful in developing a strategy they need to understand what forms the industry competition. There are five forces that form strategy. These include the threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of suppliers, and industry rivalry. A company can utilize these five forces…
Ans1: A model of consumer buying decision process involves the following 5 steps:-
1. Need Recognition:-The buyer recognizes his social needs and this need is triggered by external stimuli .This need comes for the social recognition as Porsche targeted to a very narrow segment of financially successful people.
2. Information search: - In this step, consumer search information about the product that satisfies his need. And the only products that satisfy a need of consumer is a luxury car which…
Discuss the strengths and weaknesses of the “five-forces model” for formulating business strategy. Apply the model to real cases.
Five force model of Michael E.Porter published in 1979 which aimed to provide an external economic environment analysis of industries and challenge companies to have better strategic plans before entering an industry or position their current capital which can provide them with higher competitive advantages. The five competitive forces define the attractiveness of…