Vzt- Marketing Applications Essay

The overall threat of new entrants in the retail market is a high level threat as it is relatively easy and inexpensive to enter

There is very little threat to us from our two suppliers. Vendor A is supplying us with the heat-sensing

The industry does not possess major threat from new entrants due to strong barriers to entry and strong competition for retail space. There is also a strong rivalry between competitors as limited space is being contested by major players alongside

Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.

It is easy for buyers can find a product/service that can replace the original ones with similar quality

Threats from Suppliers Company G’s current relationship with our suppliers are solid. Our reputation for putting out good products, consistently, and our steady demand for parts will enable us to establish a good foundation with our new suppliers. The parts that we’ll be purchasing from them can be made in various arenas and therefore we’ll be able to shop for the best company to do business with. A company we contract with can expect a long and fruitful relationship with us. We will be establishing with our new suppliers no compete clauses as well as confidentiality statements as to the design of our components.

You know that Michael Porter’s Five Forces Model is a useful tool for analyzing a business. The Model is used to help understand the importance of the five competitive forces and determinea strategy to develop and maintain a competitive advantage. The Five Forces are described and discussed in Chapter 1 of the textbook. They are:

Several threats exist. Company G is a well-established and respected company. Although this is a factor, rival companies eager to capitalize exist. Companies will make product closely resembling Company G’s and may offer at a lower price or with more incentives. Market growth will not be slow and low fixed cost to produce item will decrease rivalry. Since customers somewhat easily and freely switch from one product to another, this will increase rivalry. There are quite a few rivals in the same market.

Feedback: Michael Porter defined the Five Forces Model. Before formally presenting his model, he identified pressures that can hurt potential sales,

Threat of New Entrants (Medium): The threat of new entrants is not really high, appliances manufacturing industry is easy

We chose the Porter’s Five Forces as a valuable analysis tool as it helped us to identify the potential threats from new entrants as well as the power that the buyers have over the sales in this industry. It also helped us to identify the amount of competitiveness within the industry and how easily other products could be substituted for our products.

The Porter Five forces analysis helps the marketer to contrast a competitive environment. Porter’s five forces model is comprised of following five completive forces:

* Possibly the most intriguing of the group is the European-based Jajah. The service requires no client to

Porters five forces is a key model is to determine an organizations opportunities and threats. It considered to be a tool when trying to analyze a company’s microeconomics. This is the internal issue related to an organization. The competition of an organization have an industry. Supplier Power

Porter’s five forces analysis not only provides the ideas to create the strategic plan but also assesses the attractiveness of an industry.