Intro to Marketing Tesc Assignment 1
TESC Introduction to Marketing Written Assignment 1
Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter 's Five Forces Model to discuss that industry 's competitive forces and their relative influence.
Michael E. Porter, a renowned business strategist, identified five competitive forces that influence planning strategies that businesses use. The model, called Porter’s Five Forces was later updated to include the impact that the internet plays on the strategies that businesses use. These five forces are: * Potential New Entrants * Bargaining Power of Buyers * Bargaining Power of Suppliers * Threat of Substitute Products * Rivalry Among Competitors
Porter’s Five Forces relate to the competitive forces and their relative influence in the national chain retail department store industry:
Potential New Entrants- there are many well-known national chain retail department store firms, many of whom have a long standing history of serving the public. Firms in business for 100+ years include Macy’s, JCPenney and Sears. There are new firms who have entered this industry in past decades such as Target. These firms offer a wide spectrum of shopping experiences to consumers, offering products of various levels of quality and various price points. These firms have customized their marketing approach to appeal to those specific consumers. A customer-driven organization begins its overall strategy with a detailed description of its target market: the group of people toward whom the firm aims its marketing efforts and its merchandise. On the bottom end of the spectrum you find warehouse style, self-service, cheap quality at low prices from a retailer such as Wal-Mart. On the high-end you have a visually stimulating shopping experience with better bands and personalized service you come to find at retailers such as Macy’s.
Marketers pinpoint their target markets as accurately as possible.
Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter 's Five Forces Model to discuss that industry 's competitive forces and their relative influence.
Michael E. Porter, a renowned business strategist, identified five competitive forces that influence planning strategies that businesses use. The model, called Porter’s Five Forces was later updated to include the impact that the internet plays on the strategies that businesses use. These five forces are: * Potential New Entrants * Bargaining Power of Buyers * Bargaining Power of Suppliers * Threat of Substitute Products * Rivalry Among Competitors
Porter’s Five Forces relate to the competitive forces and their relative influence in the national chain retail department store industry:
Potential New Entrants- there are many well-known national chain retail department store firms, many of whom have a long standing history of serving the public. Firms in business for 100+ years include Macy’s, JCPenney and Sears. There are new firms who have entered this industry in past decades such as Target. These firms offer a wide spectrum of shopping experiences to consumers, offering products of various levels of quality and various price points. These firms have customized their marketing approach to appeal to those specific consumers. A customer-driven organization begins its overall strategy with a detailed description of its target market: the group of people toward whom the firm aims its marketing efforts and its merchandise. On the bottom end of the spectrum you find warehouse style, self-service, cheap quality at low prices from a retailer such as Wal-Mart. On the high-end you have a visually stimulating shopping experience with better bands and personalized service you come to find at retailers such as Macy’s.
Marketers pinpoint their target markets as accurately as possible.