Michael Porters Five Forces

STRATHMORE UNIVERSITY School of Management & Commerce Planning sticker - Analyzing free-enterprise(a) Industry Structure using Michael Porters fin Industry Forces Group members * Ekirapa Peter * Githiri Leah * Kinuthia Ann * Mugo, Cedric * Gichuki, Catherine * Muritu Miriam Presented to: Mrs. Stella Nyongesa Date: 16th grand 2011 According to Michael Porter, an sedulousness is not static but is habituate to changes. Porter set out to define these changes as influenced by five forces. These forces are interdependent and cause an effort to tally 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 schema should be to modify these rivalrous forces in a politics agency that improves the position of the organization. Porters m odel supports abridgment of the ride forces in an industry. Based on the information derived from the quintet Forces Analysis, prudence fag end decide how to influence or to play exceptional characteristics of their industry.

These are: * rival * 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 by dint of advertising, introducing rising products and crack attractive customer service. Thi! s is limited where: the industry is growing slowly; the competitors are equally balanced; eminent fixed cost and a lack of product differentiation among others. The pursuit of competitive advantage results in frequent equipment casualty 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 thwart a total essay, order it on our website: OrderCustomPaper.com

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