Five Forces Model Rivalry Among Firms: Currently in the fast food industry‚ there is intense competition for growth in the market. The market growth is rising because of the convenience factor and busy consumers not having enough time to cook a meal. The restaurant industry is also growing rapidly due to opportunities in other global markets. In McDonald’s case‚ they actually have a competitive advantage because they have already entered many different countries and are succeeding in these countries
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Both concentrate and bottling businesses are interrelated‚ because they create one product‚ but at different stages‚ they have the same consumers‚ however‚ there is a big difference in the structure and most significant is gaining profitability. 5 forces structure of both businesses would help to explain the phenomenon: The power of suppliers: Concentrate and bottling producers would need sugar and corn syrup‚ flavors‚ sweeteners‚ packages and some other additives suppliers. However‚ they are not
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3.0 Porter’s five forces Threat of New Entrants The threat of new entrants‚ both potential and existing competitors influences average industry profitability. The threat of new entrants is usually based on the market entry barriers. Some of the barriers include cost of entry‚ the cost you need to bear in order to enter the particular market. Rules and regulation set by Government may also considered barriers for new entrants to enter markets. The operations of McDonald’s Malaysia are affected
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[pic] ----------------------- Substitutes Beer‚ Milk‚ Coffee‚ Bottled Water‚ Juice‚ Tea‚ Powdered Drinks‚ Wine‚ Sports Drink‚ Distilled Spirits‚ Tap Water etc… There is a wide array of substitutes that consumers may choose. These products are widely and easily available at low price. Hence the threat posed by these substitutes exist at a high level. However these risks can be mitigated through diversification and offering more products in the portfolio. Since the range and the number of
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Wal-Mart’s business is the result of Sam Walton ’s visionary leadership‚ along with generations of associates focused on helping customers and communities save money and live better. This rich heritage defines who Wal-Mart is and what they do today. (Walmart Heritage) What I have intended to do in this research paper is the give a brief history‚ a SWOT analysis‚ and description of some of the problems Wal-Mart has and will face. Wal-Mart as we know it today evolved from Sam Walton’s
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THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY Porter on his 1979 HBR article states 5 competitive forces that can hurt your desired profits: 1. Established rivals (old competition) 2. Understanding the customer (their needs and desires) 3. Suppliers (how to make it less expensive) 4. New players (new or temporal competition) 5. Substitutes (other services or products that may replace ours) If the forces are intense‚ companies don’t obtain attractive returns for their investments. If forces
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Frozen Food Five Force Analysis 1. Bargaining power of suppliers < Low > In food business‚ there are plenty of suppliers who sell raw material such as vegetables‚ meats‚ and other ingredients that used in the process of producing frozen foods. Since lots of supplier who sell the same kinds of raw materials‚ all of these suppliers must compete against each other to get the customers because we have the same target market. They suppliers sell them at the low price because when the frozen
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Porters Five Forces: sports good stores Bargaining Power of Suppliers Supplier bargaining power is likely to be high. *The market is dominated by a few large suppliers rather than a fragmented source of supply‚ *There is the possibility of the supplier integrating forwards in order to obtain higher prices and margins. *Forward integration provides economies of scale for the supplier Bargaining Power of Customers Customers bargaining power is likely to be high *Switching to an alternative
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Walmart in China Introduction Walmart‚ founded by Sam Walton in 1962‚ is the largest retail company in the world. The low cost strategy and hence the “Every Day Low Prices” (EDLP) strategy allowed Walmart to outperform competitors in the US. Besides having stores in the US‚ Walmart has also expanded its market worldwide. Walmart’s entry into China was not surprising‚ given its population and growth potential. Nevertheless‚ Walmart China had been struggling with its sales volume. It was only ranked
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TWO WHEELER INDUSTRY Business Model of 2 wheeler Industry in India As shown above‚ the business model is formulated as input process output. For a two wheeler industry‚ The inputs to the OEM constitutes of 1. Import of parts: the basic ingredients for model building are the parts such as drive chains‚ engines‚ components‚ transmissions etc. 2. Auto Component Manufacturer: There are 300+ players in the industry which manufacture auto parts components and perform tasks such as castings‚ forgings
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