In: Operations Management
Choose a company and analyze the company in terms of Porter's Five Forces? 1. Competitive rivalry 2 Bargaining power of suppliers 3 Bargaining power of customers 4 Threat of new entrants 5 Threat of substitute products
I have chosen Samsung.
Competitive rivalry
As it is a part of the electronic industry, the sector possesses a large number of competing brands. All of these brands possess robust financial capabilities. Apple and Sony are the major brands that are competing for the position in the market.
Bargaining power of customers
In the case of customers, the bargaining power of customers is quite high as all have access to information these days. Due to huge competency in the market, the entity should be keen on giving quality service. Otherwise, they would choose another brand.
Bargaining power of suppliers
This force affects the company crucially, as these suppliers are the ones who handovers us the raw material for production. But it is stated that the entity faces less bargaining power of suppliers. As there are many suppliers in the market, the entity could switch on other suppliers if needed. This reduces bargaining power.
The threat of new entrants
They face less threat from this force. As it is a brand that possesses a brand value that is incompatible by a new entity. It possesses a strong position in the market. It is not easy for an entrant to challenge it easily.
The threat of substitute products
The entity faces a huge threat from this force. There are many competitors to offer similar products in the market at the same price range. Thus the customers have a wide variety of choices for choosing.