Michael Porters Five Forces

STRATHMORE UNIVERSITY School of Management & Commerce Planning sham - Analyzing free-enterprise(a) Industry Structure using Michael Porters flipper Industry Forces Group members * Ekirapa Peter * Githiri Leah * Kinuthia Ann * Mugo, Cedric * Gichuki, Catherine * Muritu Miriam Presented to: Mrs. Stella Nyongesa Date: 16th awful 2011 According to Michael Porter, an sedulousness is not static but is abandoned to changes. Porter set out to define these changes as influenced by five forces. These forces are interdependent and cause an intentness to check dynamic. According to his book, Competitive Strategy: Techniques for Analyzing Industries and Competitors, these forces determine the intensity of emulation and hence the profitability and attractiveness of an industry. The objective of corporate synopsis should be to modify these rivalrous forces in a administration agency that improves the position of the organizat ion. Porters model supports epitome of the ride forces in an industry. Based on the information derived from the five-spot Forces Analysis, prudence drop decide how to influence or to turn exceptional characteristics of their industry.

These are: * challenger * New entrants * Buyers * Suppliers * Substitute products They can be presented in a diagrammatical model as follows: 1. Rivalry Among be Competitors Rivalries naturally develop between companies in the same market. For this reason, competitors look to gain competitive advantage through advertising, introducing ri sing products and crack attractive customer! service. This is limited where: the industry is growing slowly; the competitors are equally balanced; proud fixed cost and a lack of product specialisation among others. The pursuit of competitive advantage results in frequent scathe wars, advertising battles and new product introductions which make it expensive to compete. Rivalry depends on industry concentration. One measure is...If you want to feature a total essay, order it on our website: OrderCustomPaper.com

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