Description
Using Porter’s Five Forces Model, personal Critical Success Factors (CSFs) and/ personal Key Performance Indicators (KPIs), explain how you will overcome threats from each of the five forces while achieving your professional goal(s) after graduation from the MS-IST Program. The paper’s first paragraph must identify and define, at least one, of your post-graduation professional goals.
The paper should follow APA format and contain 4-5 pages of content, not count title page and reference page. Need 5 peer reviewed references in reference page.
*Introduction, Conclusion, and subheadings are mandatory
*No Plagiarism
*APA
Explanation & Answer
here you go. let me know if you need improvement on the doc.
Running head: Porter’s five forces
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{Lecture}
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1
Porter’s five forces
Introduction
In any given business, there are at least five internal and external factors that ought to influence
the way a business handles its operations and processes. This is because it may mean the lifeline
or the end of the said business based on how they handle the forces. Below are Porter's five
forces model and how to overcome the threats posed by these factors to a business.
Porter’s five forces
a. Suppliers’ Bargaining power
This represents a vertical competition model where it can increase or decrease. The bargaining
power of a supplier can be very important when it comes to supplies for the business materials
and also other necessary items that keep the process running. When the kind of supply a business
needs is of great importance, and then the supplier might decide to hike the acquiring prices
simply because the business has got no choice but to buy the all-important supply items. This
may lead to decrease in profits or loss due to the initial capital invested in the supply. Therefore,
on the bargaining power of suppliers, these are some of the factors that can be crucial to a
business (Dobbs, 2014).
•
Employee solidarity and labor unions involvement.
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Switching and hiking of prices
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The strength of the distribution channel
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Supplier competition
b. Customers’ bargaining power
2
Porter’s five forces
The bargaining power of a customer is also a vertical force on a business in that it is subject to
increase and decrease. Customers are the heart and soul of any establishments and that means
doing anything to please them. A business regularly comes up with innovative ways to keep the
customers interested in their products and or services. This means that they hold the power when
it comes to price determinations of various commodities. If the business creates products or
services that are of prime importance to customers, then the business holds all the power when it
comes to negotiating prices but when it is the exact opposite, the customer holds the power when
acquiring the product or service (Dobbs, 2014). Various factors to consider here include:
•
Buyer’s dependency.
•
Buyer’s alternatives.
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Price sensitivity of the buyer.
•
Substitute products.
c. Industry rivalry
The rivalry between competing companies who deal in identical businesses can be both
damaging and sometimes advantageous (Dobbs, 2014). When a rival company makes a huge
mistake in its line of work, then the competing company is bound to gain much from its woes.
This includes driving the price down just to hurt the rivals earning and it can occur from both
directions. Therefore, a business might not have a solid strategy for coping up with such a threat
and hence it requires knowing your rivals well and being up-close. Some of the factors to
consider here include:
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Competitive strategy.
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Advertisement cost.
3
Porter’s five forces
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Completion from online and offline businesses.
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Innovation
d. Threat of new entrants
This is a horizontal business thre...