Question

How does Porter 5 factors force of competition in marketing apply to Huawei's smartphone company?

A Dark Horse in the Global Market: Huawei's Smartphone strategy. Case for solution.

Answer 1

How does Porter 5 factors force of competition in marketing apply to Huawei's smartphone company?

A Dark Horse in the Global Market: Huawei's Smartphone strategy. Case for solution.

Ans:- First we have to know what is the Porter's five factors or forces

1) Competitive Rivalry

2) Supplier Power

3) Buyer power

4) Threat of Substitution

5) Threat of New Entry.

Now How we can use the five forces of porter in Huawei's smartphone company and how the forces determine company structure and give a solution to the company itself.

How competitive Rivalry porters first force works for the company. If the competition is tough then it difficult to get more profit or sustainable profit for the smartphone company.

Second Force suppliers power ; actually it depends the bargaining power of the suppliers. How the bargaining power works.if the supplier has strong bargaining power then extract higher price from the smartphone company

Third power Buyers power; strong bargaining power of the buyers which maintain the sustainable profit of the smartphone company.

Forth power which is threat substitution . If the fourth factor is high then smartphone company should concentrate on his research and development . The R&D cell of the company should continiously work on new update features which is demand for the young generation otherwise the company will get a heavy loss

fifth power which is threat of new entry . The company should have all the information of the new company . In that case company get less profit to reduce the threat of new entry company.

Porters five forces is the effective tools for well establish company and not good for marketing and new product lunch.