Five forces Analysis of Café de coral 1. Threat of entry is low - Rent - Experience 2. Threat of substitutes is high -Lots of substitutes (McDonald’s‚ Tsui Wah) -Price range (substitutes are cheaper) 3. The bargaining power of suppliers is high - Switching cost is high - The suppliers are concentrated 4. The bargaining power of buyer is high - Lots of substitutes and suppliers - Switching cost is similar or low 5. Degree of rivalry is high - High fixed cost (rent) - Competitors are of the roughly
Premium Fixed cost Costs Variable cost
Porter’s five forces framework 1. The threat of new entrants. In terms of economies of scale‚ Southwest fleet grew to 537 Boeing 737 aircraft providing service to 64 cities in 32 states throughout the United States‚ with 397 city pairs being served nonstop‚ by the end of 2008‚ thus has reached sufficient economies of scale. And Southwest Airline gains its cost advantage through the implementation of “low-cost strategy”. It not only flew planes point-to-point—short-haul flights bypassing the
Premium Southwest Airlines Boeing 737 US Airways
benefit from this trend. The Porter’s analysis is a powerful tool to identify the company’s current competitive position and determine whether the business has the potential to be profitable in the future perspectives. According to the Five Forces Analysis‚ there are five factors that can determine Akamai’s competitiveness. Let us look at them in detail. Threat of Substitution: Akamai is the leading provider of cloud services staying in business for more than 17 years and considering itself pioneers
Premium Cloud computing
PETROLEUM (PRO’S and CON’S) Petroleum has brought great benefits to human civilization; quality of life and dynamic prosperity is caused by this precious resource. It is the lifeline of modern civilization. It is the source of energy for agricultural‚ industrial and transport sectors and sustains essential industries moving. Petroleum currently provides 90 per cent of energy used for transportation‚ and while its benefits are astounding‚ the use of petroleum-based technologies also has cost
Premium Natural gas Petroleum Fossil fuel
£52.7 million overnight trips to friends‚ family& relatives spending £5.4 billion (Mintel 2008)(Visit Britain‚ ). Porters Five Forces:Fig 1:Threat of New EntrantsThreat of new entrants into the tourism industry is very high; there were a handful of low-priced carriers in the UK‚ flying mostly to holiday destinations. The market valuation of Ryan air become more than that of British Airways. Since then‚ there are many more new entrants in the low-cost carrier sector‚ posing major threats to the
Premium Tourism World Tourism Organization Airline
rich‚ but what about the poor people or so called middle class. What will they do if the prices are too high to afford? Petroleum is something that we all need to go from place to place‚ anyways most of us do; four to five years ago‚ when I first came to Canada‚ the gas prices were quite low‚ but in the past 2-3 years‚ it is still increasing up to date. Prices of toasters and petroleum etc shouldn’t increase because we are getting our taxes cut and on top of that our level of price for the gas has increased
Premium Petroleum Gasoline Middle East
Porter’s five forces analysis for IKEA Threat of New Entrants As the current market is saturated‚ there is little attraction for a competitor large enough to threaten IKEA’s position. In addition‚ the significant amount of financial investments and expertise are required to become a discounted furniture retailer in a global scale. There is little threat from new entrants. Threat of substitute products The Threat of substitute products is low. As there are no too many products and services available
Premium Competition Economics terminology Perfect competition
Executive Summary Occidental Petroleum Corporation (OXY) prevailed in 2009 regardless of the state of the global economy and competition from larger companies. Focusing on long-term growth‚ Occidental aims to increase production and profits by acquiring local and global oil and gas reserves. They maintain their competitive advantage through the development of strong relationships with both local foreign counterparties. This is typically a difficult feat when faced with potential commodity
Premium Middle East Petroleum Risk
According to the first class‚ the power point showed that the pharmaceutical industry is the most profitable industry. Based on the Porter’s five forces model‚ there are convincing explanation why the pharmaceutical industry has big profitability. For the threat of new entrants perspective‚ it is high. The pharmaceutical industry has a big barrier to prevent newcomers to enter this industry such as R&D costs‚ patents limitation‚ the long length of clinical time‚ the percentage of FDA to approve drug
Premium Pharmaceutical industry Pharmacology Mergers and acquisitions
Mobile computing has revolutionized the way we do business‚ shop and communicate. Let’s break down briefly how mobile computing has an effect on each of the Porter’s five forces. 1. Bargaining Power of Suppliers Mobile computing gives suppliers more bargaining power‚ especially with the integration of social networking. There is variation of services and personalization that is readily available with so much customer input. Considering supplier costs‚ development is either costly or it isn’t
Premium Mobile computing Competition Mobile software