According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces. Based on the details given for each Porter 5 forces in the table below, justify the strategic significant and industry profitability for each forces. Porter 5 Forces Strategic Details Industry Significant Profitability (High/Low) (High/Low) Rivalry among • There are a huge number of Competing Firms companies offering the same products. • Firms compete for market share in a saturated market. Potential Entry of • Low barriers to entry. • Easy for new firms to enter the pizza industry as the initial investment is not very high New Competitors and government deregulation. Potential • There are a lot of substitute to pizza in the market. Example, frozen pizza is a substitute for Development of Substitute Products delivery pizza. Bargaining Power of • There are a huge number of Suppliers suppliers with low switching costs for firms to change their suppliers. • Customers can easily find any substitutes for pizzas. Bargaining Power of Buyers
According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces. Based on the details given for each Porter 5 forces in the table below, justify the strategic significant and industry profitability for each forces. Porter 5 Forces Strategic Details Industry Significant Profitability (High/Low) (High/Low) Rivalry among • There are a huge number of Competing Firms companies offering the same products. • Firms compete for market share in a saturated market. Potential Entry of • Low barriers to entry. • Easy for new firms to enter the pizza industry as the initial investment is not very high New Competitors and government deregulation. Potential • There are a lot of substitute to pizza in the market. Example, frozen pizza is a substitute for Development of Substitute Products delivery pizza. Bargaining Power of • There are a huge number of Suppliers suppliers with low switching costs for firms to change their suppliers. • Customers can easily find any substitutes for pizzas. Bargaining Power of Buyers
Chapter8: Strategic Analysis: Understanding A Firm’s Competitive Environment
Section: Chapter Questions
Problem 8CRQ: What are generic competitive strategies, and how are they implemented in a firms value chain...
Related questions
Question
Startegic management. Please solve this
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Recommended textbooks for you