within the industry. Threat of substitutes (low) Threat of substitutes of oil at the current moment is really weak mainly due to the high prices of such. Solar panels and other alternative energy include high switching costs and long waiting time‚ which makes them unattractive to the consumer. Although bloodies and bioethanol also exist‚ availability is low. Even though the threat of substitutes is weak‚ BP has already taken it under consideration and‚ as we mentioned‚ entered the market of alternative
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Patagonia Case 1. Situational Analysis Purpose of Organization and Product Patagonia is an outdoor clothing company worldwide leader of environmentally responsible business that offers products that are simple‚ functional and multifunctional. Patagonia’s product line is composed of four main product categories: Sportswear‚ Technical Outerwear‚ Technical Knits and Hard Goods. It is an industry leader in technological innovation‚ that invest in development and tests raw materials to cause the least
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Patagonia case If the class focus on cultural control‚ the following assignment questions are appropriate: 1. The objective of Patagonia‚ Inc. seems not to be to maximize shareholder value. What is Patagonia’s primary objective? Is this appropriate? We think the primary objective of Patagonia is to make everything sustainable in the company‚ to create a flexible and freedom-working environment. To meet the employee’ satisfaction and do contribution to planet.
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Porter’s 5 Forces Introduction The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive Strategy: Techniques for Analyzing Industries and Competitors“in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porter’s model is based up on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Competitive
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Porter’s five forces model is designed to show the profitability potential of a company. This is very important when designing ones international strategy. While this is not an all encompassing model‚ it is essential that these five forces be considered because they drive the profit margins of a product and before going global‚ a company must know if it even has a chance to succeed in that specific market. These forces are: 1. Rivalry. Rivalry effects how much a company is able to charge
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Porters 5 forces Pestle? Business plan The unexpected Incongruities‚ Process needs‚ Industry structure‚ Demographics Changes in perception‚ New knowledge Idea‚ Invention‚ Innovation‚ Diffusion Companies own assets Physical Intangible Human In the past Competitive advantage came from physical assets such as property/land/Financial clout Still important (anyone fancy taking on Apple?) but Intellectual property (patents) and key process management (we know how to do this) i.e. what we
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The Porter five force analysis was formed by Michael E. Porter of Harvard Business School in the year 1979‚ this model identifies and analyses 5 competitive forces that shape every industry‚ and helps determine an industry’s weaknesses and strengths. This analysis shows the overall attractiveness of an industry meaning how profitable it is. For example an unattractive industry would be the pure or perfect competition‚ because all profits turn to normal profit in the long run which means the firm breakeven
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PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
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Porter’s 5 Forces Analysis- Need to include one consistant example-The conclusions/improvements that can be drawn from Porter’s 5 Forces-Every force should have a fancy quote and reference Introduction Developed by Michael E. Porter‚ “Porters 5 Forces” have shaped a generation of academic research and business practice. Intense forces lead to less attractive returns on investment as can be seen in the airline textile and hotel industries. Benign forces exist in industries such as software‚ soft
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1. Evaluate Patagonia’s business strategy – what type of strategy is it pursuing and how has it configured its value chain to support this strategy? Patagonia’s is pursuing a community-focused sustainable strategy‚ where it focuses on its actions and policies to establish connections with the community‚ where it takes action to benefit the community as a whole‚ including other businesses‚ not only its customers. A Patagonia jacket signals the wearer’s individual association with the community
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