Porters Five Force on Tesco Plc
Utilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco
Jeewan Pudasaini
Greenwich University
BA (Hons) in Business Studies 2011
Utilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco
Jeewan Pudasaini
Blake Hall College
Submitted To
University of Greenwich in accordance with the requirement of BA (Hons) in Business Studies
December 2011
Word count: 2905
Contents
Introduction
1. Porters’ Model: 4 1.1 Threats of new entrants: 4 1.2 Degree of rivalry: 4 1.3 Threats of substitute: 5 1.4 Suppliers’ power: 5 1.5 Buyers’ power: 5
2. Tesco 6
3. Application of Porters’ Model in Tesco with respect to new market: 7 3.1 Threats of new entrant: 7 3.2 Degree of Rivalry: 8 3.3 Threats of substitute: 9 3.4 Suppliers’ power: 10 3.5 Buyers’ Power 11
Conclusion……………………………………………………………………………………………………………………….12
Bibliography 13
Introduction
1. Porters’ Model:
In order to make an assessment of the profit potential in any type of business organisation, Michael Porter’s Competitive Forces Model is one of the frequently adopted frameworks. This competitive forces model of Porter’s comprises of collective strength of five forces which differs from one business organisation to other (Porter, 1980). The five forces as illustrated by Porters can be mentioned as: * Threats of new entrants * Degree of rivalry * Threats of substitute * Suppliers ‘ power * Buyers’ power
1. Threats of new entrants:
It is one of the important components of Porter’s model which depicts with limitation or prohibition of the new entrance. The entry of new business organisation is mainly due to high profit margin. Although certain major components such as experience, learning, volume brand image, loyalty, capital requirements for new entrants, switching cost, ease in distribution and cost disadvantages can create
Jeewan Pudasaini
Greenwich University
BA (Hons) in Business Studies 2011
Utilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco
Jeewan Pudasaini
Blake Hall College
Submitted To
University of Greenwich in accordance with the requirement of BA (Hons) in Business Studies
December 2011
Word count: 2905
Contents
Introduction
1. Porters’ Model: 4 1.1 Threats of new entrants: 4 1.2 Degree of rivalry: 4 1.3 Threats of substitute: 5 1.4 Suppliers’ power: 5 1.5 Buyers’ power: 5
2. Tesco 6
3. Application of Porters’ Model in Tesco with respect to new market: 7 3.1 Threats of new entrant: 7 3.2 Degree of Rivalry: 8 3.3 Threats of substitute: 9 3.4 Suppliers’ power: 10 3.5 Buyers’ Power 11
Conclusion……………………………………………………………………………………………………………………….12
Bibliography 13
Introduction
1. Porters’ Model:
In order to make an assessment of the profit potential in any type of business organisation, Michael Porter’s Competitive Forces Model is one of the frequently adopted frameworks. This competitive forces model of Porter’s comprises of collective strength of five forces which differs from one business organisation to other (Porter, 1980). The five forces as illustrated by Porters can be mentioned as: * Threats of new entrants * Degree of rivalry * Threats of substitute * Suppliers ‘ power * Buyers’ power
1. Threats of new entrants:
It is one of the important components of Porter’s model which depicts with limitation or prohibition of the new entrance. The entry of new business organisation is mainly due to high profit margin. Although certain major components such as experience, learning, volume brand image, loyalty, capital requirements for new entrants, switching cost, ease in distribution and cost disadvantages can create
Bibliography: Acur, N., & Bititci, U. (2004). A balanced approach to strategy process. International Journal of operations and production management , 388-408. Clarke, I., Bennison, D., & Guy, C. (1994). The Dynamics of UK grocery retailing at the local scale. International Journal of Retail and Distribution management , 11-20. Porter, M. (1985). Competitive Advantage. New York: Free Press. Porter, M. (1980). Competitive Strategy. New York: Free Press. Porter, M. (2008). The Five Competitive Forces that Shape Strategy. Harvard Business Review , 78-92. Ritz. (2005). Store wars. Business Reviews , 22-33. TESCO. (2011). Interim results 2011/12. Retrieved December 4, 2011, from tescoplc.com: http://www.tescoplc.com/media/197025/statement_of_results_-_26_weeks_ended_27_august_2011.pdf TESCO plc. (2011). Our Values. Retrieved december 4, 2011, from tescoplc.com: http://www.tescoplc.com/about-tesco/our-values/ Yip, G. (2004). Using strategy in change your business model. Business strategy review , 17-24.