Question

‘Panasonic is the one of the best home appliances in Malaysian.’ Examine its supply chain based on Porter’s Five Forces model. Justify your answers with examples.

Pls do not copy paste the answers from other sources.

Answer 1

Answer:

Porter’s five force analysis is given below:

Threats of new entrants: there are large numbers of heavy weight players that are competing in the electronics markets such as Samsung, Apple, etc. Entering in such a competitive market is highly difficult for the new entrants. Hence, Panasonic does not have a threat of new entrants in the electronics market.

Threat of substitute: Since there is a fierce competition in the consumer electronic market, customers gets easily shifted to the products of the competitor if they find better technology at the less cost. Thus, Panasonic faces huge threat of substitute product from its competitors in the Malaysian market.

Bargaining power of buyers: Buyers are at the strong position in Malaysia when it comes to their bargaining power as they have lot many choices available for their purchases. We can say that, consumer electronics market of Malaysia is the one where buyers decide on the competitive pricing of the product. Hence, for Panasonic, bargaining power of buyer is very high.

Bargaining power of suppliers: If we consider the supplier of raw material for Panasonic, Bargaining power of supplier is slightly weaker as large numbers of suppliers are available in the Malaysian market for the same products.

Industrial rivalry: As already discussed, consumer electronics industry faces huge rivalry within the industry. There are large numbers of competitors who provide same category of products in the Malaysian market and they compete on the basis of cost and quality and features of the product.