Preview

5 Porter Analysis

Satisfactory Essays
Open Document
Open Document
1705 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
5 Porter Analysis
LEGAL STATEMENT
ISI is the owner or the licensee of all intellectual property rights in this database, and in the material provided by it. Any and all of the works
(including this file currently available to you) hereof are protected by applicable copyright laws and relevant international treaties. All such rights and legal remedies are reserved.
Except as otherwise permitted in the agreement (if any) entered into between you and ISI, or as otherwise expressly approved in writing by ISI, you must not use, reproduce, modify, publish, transfer, assign, rent, lease, sell, or otherwise dispose of this file as well as all copies.
法律声明
ISI 是本数据库及其内容的知识产权所有人或被许可人。本数据库中
的任何内容(包括您现在正在阅读的文件)受版权法和有关国际条约
的保护。ISI 保留一切权利,包括诉诸法律寻求救济的权利。
除非您与 ISI 签署的有关协议 (
如有 )
允许 ,
或者除非 ISI 书面同意,
就本文件及一切复印件 ,
您不得使用 、
复制 、
修改 、
公开 、
转发第三
方、出租、出售或进行任何形式的处分。

FIVE FORCES ANALYSIS
The specialty chemicals market will be analyzed taking specialty chemicals manufacturers as players. The key buyers will be taken as b2b end-users, and commodity chemicals producers as the key suppliers.

Summary
Figure 1: Forces driving competition in the specialty chemicals market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

The degree of rivalry is assessed as moderate, as the main players are large multinational companies, with the resources to compete for contracts and diverse product range, reducing their reliance on this market alone.
The specialty chemicals market is characterized by relatively low product differentiation, although products are less commoditized than base chemicals. Entry barriers include capital requirements to establish manufacturing facilities, and increasingly stringent market regulations, which all serve to increase rivalry.
Customers generally have few alternatives to the specialty chemicals they buy, so that the market players face little in the way of indirect competition.
Buyer power is assessed as moderate, as specialty chemicals are

You May Also Find These Documents Helpful

  • Good Essays

    Chapter 10 Study Guide

    • 15948 Words
    • 64 Pages

    have to accept the market price for their product, and the entry barriers into the market will be high.…

    • 15948 Words
    • 64 Pages
    Good Essays
  • Powerful Essays

    Sam Adams Porter Analysis

    • 2077 Words
    • 9 Pages

    Boston Beer gained brand equity as a result of its efforts to create robust brands over the years. The company offers…

    • 2077 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Product differentiation No Environment: •High transportation costs •Long delivery time •Uncertainty •Difficult to find partner…

    • 423 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Nucor Competitive Strategy

    • 4178 Words
    • 17 Pages

    Nucor Corp., the U.S largest mini-mill operator1 and largest steel manufacturer by tons produced2, continues to lead the industry in efficiency, technological innovation, profitability and delivery of high quality products at low cost structure, after a record of more than 16 years of rapid growth in a declining industry3. And with a strong relationship with its workers without unionization, Nucor’s employees claimed to be the industry’s…

    • 4178 Words
    • 17 Pages
    Powerful Essays
  • Satisfactory Essays

    Competition within the industry will all depend on the market change, the evolution of new chemicals with fewer side effects and the role…

    • 512 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    | Limited product offering restricts its potential to compete against companies with diversified product offerings.…

    • 622 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Detective Solution

    • 3111 Words
    • 13 Pages

    manufacturer would be expected to have a lower gross margin than a pharmaceutical manufacturer because commodities such as steel are subjeci to strong price competition, while highly differentiated producrs like patenred drugs enjoy mrich more pricing freedom ' Because of unique economic features of each industiy, uurrug" financial statements will vary from one industry to the next. Similarly, companies within industries have different flnancial characteristics, in part, because of the diverse strategies that can be employed. Executives choose strategies that will position their company favorably in the competitive jockeying within an industry. Strategies typically entail making important choices in how a product is made (e.g., capital intensive versus rabor intensive), how it is marketed (e.g., direct sales versus the use of distributors), and how the company is financed (e.g., the use of debt or equity)- Strategies among companies in the same industry can differ dramatically ' Different strategies can produce striking differences in financial results for firms in the same industry. The following paragraphs describe pairs of participants in a number of different indlrsffies. Their strategies and market niches provide clues as to the financial condition and performance that one would expect of them. The companies, common-sized financial and operating data, as of early 2005, are presented in a standardized, format :tateTents in Exhibit 1. It is up to you to match the financial data with the company descriptions. Also, try to explain the differences in financial results across industries.…

    • 3111 Words
    • 13 Pages
    Powerful Essays
  • Best Essays

    Lego Strategic Analysis

    • 2652 Words
    • 11 Pages

    This essay will consider firstly the position of Lego in relation to both the constraints of the internal and external…

    • 2652 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Porters 5 Forces Analysis

    • 861 Words
    • 4 Pages

    The global industry of construction and agricultural machinery is characterized by intense rivalry among firms due to its competitive strategies. (Book) When few multinational companies dominate the market, a consolidated industry exists, making it crucial for companies to lead in market share and profit margins. (Book) This in turn creates low switching costs for buyers allowing them to purchase from different companies without hesitation. (ML)…

    • 861 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The company’s target market (high profile wealthy individuals) demands uncommon quality products. Through limited availability the firm is able to command high mark ups and maintains a waiting list for its most exclusive products. If the firm were to over diversify it is at risk of losing the exclusivity that defines its brand image.…

    • 406 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Competitive rivalry is medium to high. There are numerous competitors as well as many E-retailers that are entering the market rapidly. Several Rivals are highly dedicated to being industry leaders. Furthermore there are diverse approaches and differing goals between competitors. These are all factors that lead to a high force but because exit barriers are low. Therefore weak firms are more likely to leave the market which in turn, increases profits for remaining firms which weakens the power of competitive rivalry.…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    P&G Case Study

    • 796 Words
    • 4 Pages

    * Competition: the performance and mildness segments already have more than 7 brands from established companies fighting for a larger share of the shrinking market pie whereas the price segment only has small generic brands and private labels with minimal marketing support…

    • 796 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    The rivalry among existing competitors in the automotive industry is very aggressive. Note that since the arrival of the Chinese participant Huawei, eventhough it still has no presence in the automotive industry, they already have services that will be integrated this year as both telecommunications and internet GPS for cars, these features were already accepted and endorsed by recognized auto manufacturers. All this has made the competition become more intense. Additionally, the company has ventured into Erictel the automotive industry, offering its telecommunication services to prevent theft of cars. On the other hand, there is also a partnership between Apple and Audi, Apple offers a service where the mobile device is connected to the car and can control some functions within the same radio as through mobile applications. It competes directly with the partnership between Ericsson and Volvo where similar mobile connectivity services were implemented in their electric cars, which can be accessed from any personal device, which can not only access information but control some car functions remotely. Last but not least, Ericsson has decided to invest in this industry with its "Auto on- Cloud" service which has earned accolades.…

    • 825 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Porters Analysis

    • 3652 Words
    • 15 Pages

    Akhtar Munir Retail Sales Officer in Mobilink. Afnan Khan Saddozai Management Trainee Officer in National Bank of Pakistan Dr.Bakhtiar khattak Chairman: Department of Business Administration, Gomal University, D,I.Khan Dr.Shumaila Hashim Lecturer: Dept of Bus.Administration, Gomal University, D.I.Khan. This paper has written as a part of academic research, on the basis of data availability. The analysis is based on researchers’ own understanding; company’s management may disagree with it. Abstract This paper attempts to analyze the intensity of competition within industry for Mobilink on the basis of Porter five forces model. Study indicates that although it is a market leader in cellular sector in Pakistan yet it has strong rivals. Further more subscribers’ switching cost is low. So the company is required to must consider these two factors in policy formulation. On the other hand position of forces like suppliers and substitutes availability and potential entry of new entrants is weak. Key Words: Mobilink, Pakistan, Porter Analysis, Subscribers, Suppliers, Rivals JEL Classification: F23, L25, L63, L96, N7 Introduction Environmental scanning is the most important step in strategic management process, which is conducted to find out all those trends and events that can influence an organizational efficiency in both positive and negative way. Internal environmental analysis helps in finding strengthen and weaken areas of the firm. While in external environmental scanning we analyze external forces like economic, political, cultural, technological and competition. This analysis helps to understand that what are the threats for an organization’s successful survival and what are the available opportunities. Thus with the help of strength we can face…

    • 3652 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Porters Analysis

    • 713 Words
    • 3 Pages

    Relates to the existence of alternative products that have a similar utility as company's products but do not directly compete with them. The two important considerations are buyer's propensity to…

    • 713 Words
    • 3 Pages
    Good Essays