In using Porter’s five Forces Analysis to make this determination first I would utilize Porter’s five forces to analyze by Business organizations compete against one another. If you take a look at Porter’s Five Forces Analysis which is an important tool for understanding the forces that shape up the Understanding of competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition the drive for continuous improvement. The most important Porter’s five forces in using Porter’s five forces to make this determination will be the following which I would start with
Threat of New Entry: Competitive Rivalry: Suppliers Power:
Specialist knowledge Quality differences Number of suppliers
Economies of Scale Other differences Size of Suppliers
Cost of Advantage Switching costs Uniqueness of service
Technology protection Customer loyalty Your ability to substitute
Barriers to entry Cost of leaving market Cost of Changing
Threat of Substitution Buyer Power
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Substitute performance Number of customer
Cost of Change Size of each order
Difference between competitors
Price sensitivity
Ability to substitute
Cost of Changing
So, with my understanding of Porter regarding both the competitive forces and the overall industry structure as crucial for effective strategic decision-making. In Porter’s model, the five forces that shape up the industry competition. With this information and resource, I will be able explain to management how utilizing Porter’s five forces will analyze the organization industry and will provide the understanding of competitive advantage. Plus, it also the bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes. If you are making biscuits and there is only one person who sells flour,
