Porter s Five Forces Model - 1137 Words

The next facet of the Porter’s Five Forces model, the bargaining power of suppliers, has a low to medium level of influence in the automotive industry. Suppliers can be easily replaced if an automotive producer is unhappy with the quality or price of their product. However, suppliers can have catastrophic effects on an automotive producer when their products fail and need to be recalled. For example, Firestone produced faulty tires equipped to the Ford Explorer which caused over 250 deaths, billions of dollars in losses and the collapse of the Ford Explorer product line [5]. The fourth facet of the Porter’s Five Forces model, substitute products, has relatively low implications on the automotive industry but is largely determinant on a†¦show more content†¦Although these resources offer incredible value to Ford’s customers, their main competitors are able to utilize comparable resources to serve prospective buyers. Ford Motor Company’s intangible resources of its historic legacy, original vision, and ONE Ford plan are valuable, rare, hard to imitate, and hard to substitute, providing the organization with a sustainable competitive advantage. Ford Motor Company’s heritage and roots in American history have created an indistinguishable and renown brand that has global recognition. Henry Ford’s iconic vision of opening up the highways to all of mankind provided an iconic foundation that continues to inspire generations today and maintains a loyal customer base. Ford Motor Company’s organizational capabilities include a revamped organizational hierarchy and progressive internal partnerships, initiated by Alan Mulally shortly after arriving to Ford [2]. With a new organizational structure in plan to provided direct support from the top of the organization, Mulally was able to stay involved in the progression of his ONE Ford plan. This aspect of Ford’s organizational capabilities is valuable, but not ra re, hard to imitate, or hard to substitute. Many organizations both inside and outside of theShow MoreRelatedPorter s Five Forces Model1539 Words   |  7 PagesPorter s Five Forces Model Introduction The cosmetic industry is influenced by a wide range of factors that affect market growth and profits for businesses. The cosmetic industry has continued to record a substantial strong growth over the years and developed as one of the industries holding the highest potential for further development and growth. The market characteristics can reduce or increase the chances of success for new market entrants (Porter, 2008). Using Porter’s five forces model, businessesRead MoreThe Porter s Five Forces Model1281 Words   |  6 PagesAbstract The Porter s Five Forces model, which was named after Michael E. Porter, identifies and analyzes five competitive forces that shape every industry, and helps determine an industry s weaknesses and strengths. These forces are: †¢ Competition in the industry; †¢ Potential of new entrants into the industry; †¢ Power of suppliers; †¢ Power of customers; †¢ Threat of substitute products. It is commonly used to identify an industry s structure to determine corporate strategy. Porter s model can beRead MorePorter s Five Forces Model Essay1602 Words   |  7 PagesPorter s Five Forces model (PFF) is a powerful instrument that can be utilized by companies to investigate its situation and identify its industry s competitors. Analyzing industry will help any business in determining the competitive strength and weaknesses. By using PFF model, investors can gain valuable information regarding what the actual factors that affect the organization s profitability (Evans Neu 2008). This paper will analyze the Cola Wars case study based on the PFF model, and theRead MorePorter s Five Forces Model1611 Words   |  7 PagesPorter’s Five Forces In order to further figure out the failure of GM in Korea, we decided to analyse it from industrial perspective. The five forces model, which was developed by the Harvard professor Michael Porter, is going to be applied to the case. Porter’s five force model demonstrates that the Threat of New Entrant, the Threat of Substitute Products or services, the Bargaining Power of Buyers, the Bargaining Power of Suppliers and the Rivalry among the Existing Competitors are the forces thatRead MorePorter s Five Forces Model Essay1793 Words   |  8 PagesPorter’s Five Forces Model for the ACA helps explain how the system is currently being utilized in an unforeseen manner. 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Essentially the five forces model provides corporations with a means of analyzing their fellow competitors within the market (PorterRead MoreAnalysis Of Porter s Five Forces Model1757 Words   |  8 Pagesand profits. Why is this so? FIVE FORCES MODEL Until recently, Porter’s Five Forces Model was the dominant theory applied to factors driving competitive forces in an industry. It hypothesizes that the level of competitive intensity within an industry arises from five specific sources in determining attractiveness of an industry to potential entrants. Porter developed Five Forces Analysis in response to SWOT analysis, a model he found too vague. In this economic model, while rivalry between competingRead MoreCase Study : Porter s Five Forces Model1153 Words   |  5 PagesORGANIZATION-EBAY Abstract Porter sFiveForce Porter s Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes. How the five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces Threat of Entry This business is an Internet-driven administration industryRead MoreHow to use porter s five forces model2243 Words   |  9 Pages7/22/2015 How to use porter s five forces model ïÆ'‰ (http://www.smartinsights.com)  Sign in (/wp-login.php) Become a member (/membership/) Resources (/digital-marketing-advice/) Blog (/blog/) About (/about/) Contact us (/contact-us/) How to use Porter’s five Forces NOVEMBER 18, 2013 MARKETING MODELS (HTTP://WWW.SMARTINSIGHTS.COM/MARKETING-PLANNING/MARKETING-MODELS/) (http://www.smartinsights.com/marketing-planning/marketing-models/porters-five-forces/?share=twitternb=1) (http://www.smartinsightsRead MoreCase Study : Porter s Five Forces Model1132 Words   |  5 Pages Organization-Ebay Institution: Name: â€Æ' Abstract Porter sFiveForce Porter s Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, threat of rivalry, threat of suppliers, threat of purchasers and threat of substitutes. How the five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces Risk of Entry This business is an Internet driven organization