Changing prices - raising or lowering prices to gain a temporary advantage. To carry on the trade or business of arms and ammunition manufacturers and dealers and for that purpose to manufacture, purchase, process, transport and deal in guns, pistols, revolvers, rifles, machine guns, stenguns, bullets, bombs, rockets, missiles, tanks, fighter planes, cartridges, cartridge cases, detonators, fuses and other substances and articles required for or incidental to the carrying out of the above objects or any of them.
Similar sized companies operate in one market These companies have similar strategies Products on offer have similar features and offer the same benefits Growth in the industry is slow There are high barriers to exit or low barriers to entry 2.
To provide R and D services to various industries by running pilot studies at laboratory level. At other times, local hospitals are highly cooperative with one another on issues such as community disaster planning.
Buyer Power The power of buyers is the impact that customers have on a producing industry. There is greater possibility for mavericks and for misjudging rival's moves. For the purpose of this model, industry attractiveness is the overall profitability potential of the industry.
This means that there is usually a need to maintain strong steady relationships with suppliers. Porter also emphasized the importance of using this model at more basic industry level. AGRO INDUSTRY To buy, sell, import, export or otherwise deal in all plants and machinery, implements, accessories, tools, materials, substances, goods or things of any description used in all types of operations of farming, horticulture, agriculture including tractors, power tillers, sprayers, dusters, mist blowers, threshers and all types of modern agricultural implements, fertilisers and all types of plants, goods, pesticides, insecticides, fungicides, any types of plant protection chemicals, fishing boats, craft and trawlers, fishing nets, gadgets, cold storages, deep freeze equipment and all types of equipment required for forestry, animal husbandry, poultry, farming, pisciculture, sericulture, agricultural; equipments for processing and preserving forest produce, agricultural produce, and all other foods, materials including materials of animal origin, and such other allied articles.
This force is especially threatening when buyers can easily find substitute products with attractive prices or better quality and when buyers can switch from one product or service to another with little cost. To undertake the business of distribution and application of chemicals, fertilizers and pesticides, aerial or otherwise and to maintain and run vehicles, aeroplanes, helicopters, equipments for spraying and to run the said aeroplanes for hire and as passengers carrying craft also.
This force is the major determinant on how competitive and profitable an industry is. A diversity of rivals with different cultures, histories, and philosophies make an industry unstable. If there are more companies competing with each other, the resulting competitive pressure will mean that prices, profits and strategy will be driven by it.
Sears set high quality standards and required suppliers to meet its demands for product specifications and price. Rivalry is volatile and can be intense. In addition to simplistic furniture design and eco friendly solutions, the company is known to control costs, focus on operational details and efficiency and a continuous focus on new product development.
Threat Of Substitutes In Porter's model, substitute products refer to products in other industries. For example, iTunes was created to complement iPod and added value for both products.
It was created in by 17 year old Ingvar Kamprad. To provide facilities for analysing the industrial effluents, sludges and gases which covers air, water and soil pollution and also to provide monitoring facilities for soil, water, air pollution on turn key basis for clean environment.
Slow market growth causes firms to fight for market share. A limited number of strong buyers may be able to exert significant control over a seller. Composition of Forces Within each industry, the effect of different forces will be different.
The competition engendered by a Threat of Substitute comes from products outside the industry. Cyclical demand tends to create cutthroat competition.Syllabus III IV. Uploaded by Kumar Kishore. IBS. Save. Syllabus III IV. Tri-component attitude model.
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The Five Forces Model was devised by Professor Michael Porter. The model is a framework for analysing the nature of competition within an industry. The short video below provides an overview of Porter's Five Forces model and there are some additional study notes below the video.
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