Challenges Faced from Expatriate Workers

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Porter’s five forces model

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QUESTIONS:
Porter's five forces model is a valuable tool for analysing the forces of change in the hospitality and tourism business environments. Explain the model and show how it can be applied to a company known to you. 1. INTRODUCTION

“Porter's five Forces is a framework for the industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979.” (Wikipedia, 2010)
“Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you are considering moving into.”(Mind Tools Ltd. (1996-2010) Michael porter is the most expensive management consultant in the world. He produced many business tools and ideas to improve the level of the business and helps to create a business successful by applying the tools. One of the most famous tools of Michael porter is the 5 forces model. This model is a simple but very powerful tool for the business. It is a valuable tool for analysing the forces of change in the hospitality and tourism business environments. Is plays a vital role in the hospitality and tourism industry. It helps to determine the position of the business in the market. This is very useful to the hospitality business because it helps you understand the current strength and weakness of the business. By this you can take a best decision towards the business and can avoid the wrong step which can affect the business. In the hospitality and tourism industry the most important part is to provide the good service to the customer. So, if they find out the weakness of their industry and understand of where the power lies, they can easily solve the problem. The porter's 5 forces out the weakness and strength of the business. It can help to make a decision how to find out the successful way to enter in the market and help to find out the best partner with in any enterprise. Because if the company can join one of the best and popular enterprise as a partner it is very helpful and positive for the particular business. Nowadays, there are many hospitality industries in the world. Out of this most of the hospitality industry gets the success by applying the porters 5 forces. It shows the right and effective way to run the hospitality business successfully in the market. In the hospitality business, the tools are used to identify whether the new products, services have the potential to be profitable or not. To run the business there should be profit otherwise the business will collapse. So, the Porter's 5 forces is very useful to the hospitality and tourism industry. It helps to change the position of the business in the market. 2. GRAPHICAL PRESENTATION OF THE PORTER'S FIVE FORCES MODEL

Porter's analyse the immediate competitive environment into five competitive forces; * Threats of new entrants
* Threats of substitutes
* Bargaining power of suppliers
* Bargaining power of buyers or customers
* The rivalry among current competitors
3. BRIEFING OF PORTER'S FIVE FORCES:
Force 1: The threats of new entrants
Each and every business there is a competition between the companies. To expand the business and want to stay in the higher position (among the rival company) nature of the business man creates a competition between the companies. The new entrants bring extra capacity into an industry. It is a threat as the existing business may lose the market share. The new entrants may cause major change into the market environment. Every business person should attract for the profitable business in the market. If there is a high profits in the one industry, all the people wants to spend some money to joining the business or make a place in the business. It creates many new entrants, which...
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