Question

In: Operations Management

For your Glo-Bus company in the simulation, which of the 5 competitive forces in the Michael...

For your Glo-Bus company in the simulation, which of the 5 competitive forces in the Michael Porter Article is creating the strongest competitive pressures on your company? Be sure to list the competitive force along with an example to explain the pressure on your company.

Solutions

Expert Solution

Glo-Bus company in the simulation

The Glo-Bus is the simulation game focuses upon aspects such as Production design, marketing, assembly, compensation and labor, discount bids, corporate citizenship, and finance and cash flow. In this game, every player makes decisions in their respective companies which is submitted before a due date in which the game "turns" one year. In the next financial year shows who has met investor expectations or who is clearly the most profitable in the industry.

The porters five competitive forces which is creating the strongest competitive pressures on my company are as follows:

  1. Threat of New Entrants – Threats of New Entrants would provide competitive pressure on my business. This is because mostly every business strategy is to focus on the product design, assembly line, compensation and labor, discount bids, corporate citizenship, and finance and cash flow. For example, a new entry to the market has the product design similar to the existing one with some economic variation then it is difficult for my company to retain its product in the market. New entrants have different way of simulation hence, it very important to know new entrants in the market to compete at the starting stage.

  1. Bargaining Power of Suppliers- The bargaining power of supplier is higher in this case because the new innovation technology leads to the higher cost. For example, supplier would charge more for the technology and innovation which they provide.
  2. Bargaining Power of Buyers – Buyer has less power to negotiate on the decision-making process. They have to finish negotiated at the higher price.
  3. Threat from Substitute Products – The treat of substitute product s also low which says that the substitute is not available in the market. Hence the competition is low.
  4. Rivalry among the existing players- Rivalries are present in the market hence the competition is high. Innovation technology companies are so many in market. Hence the competition is very high.

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