Question

Identify and list each of Poter's five forces that determine competition and the industrial profitability of the market eg rivals, barriers to entry, suppliers, substitutes, and buyers. You may want to do this using a visual aid, like a chart. Pick any organization you are familiar with and describe its overall competitive environment using each of the forces. Analyze how each of The Five Forces affects the organization and how each force may affect the ones. Evaluate which force is the strongest and why. Which is the weakest?

Prepare a two page (double-spaced) essay. The paper should be 12-point font, Times
New Roman, be at least 500 words, and include a final source list.

Answer 1

Identify and list each of Poter's five forces that determine competition and the industrial profitability of the market eg rivals, barriers to entry, suppliers, substitutes, and buyers. You may want to do this using a visual aid, like a chart. Pick any organization you are familiar with and describe its overall competitive environment using each of the forces. Analyze how each of The Five Forces affects the organization and how each force may affect the ones. Evaluate which force is the strongest and why. Which is the weakest?

Supplier power

Supplier power or the bargaining power of suppliers refers to the effect suppliers can exert on businesses by lowering quality, raising prices, or reducing the availability of their goods (Grennan, et al. 2014). Supplier power is one of the aspects that affect the competitive structure of the market. The bargaining power of suppliers affects the market by influencing the buyer's ability to make profit. A strong supplier affects the market by raising prices, lowering quality, and reducing the availability of their product in the market (Ma, et al. 2015). By doing so, they are reducing the profit potential for the buyer. A weak supplier has considerations for the buyer and will not do what the strong suppliers are doing to have an effect on the market. Instead, they reduce the competition in the market thereby increasing the profit potential for the buyer A good example is when oil prices shot to an all-time high after the recession. Industries required more petroleum products and the suppliers were able to make the products virtually vanish from the market. By so doing, the prices shot high, and the buyers had to dig deeper into their pockets to be able to run their vehicles and diesel generators.

This describes how unique a product or service which the supplier offers is and how expensive it can be to switch from one supplier to another thus the more an individual has to select from the easier it can be to switch to a cheap alternative.

The supplier bargaining power is a very strong in a highly dynamic market. Dynamic markets tend to get have fluctuating prices affected by the supply and demand factor in the market (E. Dobbs, et al. 2014). Thus, the supplier bargaining power is one of the factors determining the situation in the market as they control the flow of products into the market.

It is stronger, This is because the fewer suppliers there are and the more and the more an individual requires their help the greater their position and r ability to be more expensive

Competition – government regulations can ensure fair competition by having a fair play ground for all market players
Potential of new entrants – government regulations can allow new market players to enter the industry for customers to have variety to choose from
Power of suppliers – the government could ensure fair pricing by putting tough measures to curb stronger supplier syndrome in the market
Power of customers – ensuring that there is a pricing regulation on commodities to save customers from retailer manipulation
The threat of substitute products – government regulations should ensure that all substitute products are of the same quality from all manufacturers. This will level the competition ground.

Control the prices to avoid exploitation of the consumers
Regulate the entry of firms into the market so to manage competition
Introduce taxes and tariffs on imported goods