Question

Porters 5 forces model for the Guitar Manufacturing Business

-Rivalry

- Suppliers

- Potential new entrants

- Buyers

- Substitute products

Answer 1

Porters 5 forces model is consider as a micro tool of business used to analyze the industry specially the external business environment of the industry.The five model of Porters is Rivalry , Suppliers , Potential new entrants ,  Buyers and the Substitute products.Following are the Porters 5 forces model for the Guitar Manufacturing Business are:

1. Rivalry - The competitive rivalry is examine the intense competition in the market.For the Guitar Manufacturing Business competitors  are less but the competition is high.because various local and international player are present in the market. Can motivate the consumer to easily switch to the different competitors.who offer the less price.Qualiry is also a important for the consumer.So, when any competitor giving the product in good quality with less price.Consumer will definitely switch to that manufacturer.To attract the consumer and beat the competition,quality and price is important factor in the Guitar Manufacturing Business.
2. Suppliers - Supplier bargaining power analyze the how much control suppliers have in the amount guitar company can pay the price for raw materials and lower the business profitability.Because guitar is a product whom have a less supplier in a city as compare to other general products.So,by this force Guitar Manufacturing company can analyze the control of suppliers in terms of amount you pay for the raw materials and to manufacturing the Guitar.Size of the suppliers in a particular city always determine that how easy for the supplier to increase the price of the materials or the final goods.
3. Potential new entrants- Potential new entrants are also Called as the threat of new entrants.By the help of this force Guitar Manufacturing Business can analyze that how it is easy or difficult of the new competitors to enter in the market.Because the competitors are less in the market.it is easy for the new competitor to enter in the market.But, also they have to give the quality product in less prise as compare to the market.For the new competitor there a lot barriers to enter in the market is Cost advantage, strong brand identity of the existing guitar manufacturing company, economies to scale, Government rules and regulation for the trees to protect the environment and because guitar is made up of wood.which will work as barrier for the new competitor.
4. Buyers - buyers or customer power.This approach tells the power of the consumer.We can say that the pricing of the product is indirectly control by customer/Buyer.If the buyer is limited in number and the buying power is high.consumer can influence and Decrease the price of the product.So, by the help of this force Guitar company can analyze the behavior of the consumer.If the customer is low in the market and competitors are hig.it is very easy for the consumer to switch to the other manufacturer over the price and quality of the product
5. Substitute products - This force is also called as the threat of substitute product.This force is also meet the same need and similiar to the price and quality of the product.If the quality of the product is not soo good, consumer will difinitely switch to the other compertitors.Guitar Manufacturing company must be Increase the quality of there product ans also Decrease the some price will help the company to attract the existing consumer as well as new customer.