The Porter Analysis Essay examples -- essays research papers fc

IntroductionTo perform the Industry Analysis it is better to follow Michael Porters tail fin forces model. This analysis framework was created so that it helps managers in their parturiency to analyze warring forces to the company. (Hill & Jones 80) This model is only one of the models that can be used for this task but it is one of the more than popular models. The five forces that we go away arrest to look at for this model are (1) the risk of new and likely competitors (2) the bargaining power of suppliers (3) the threat of substitute products (4) the bargaining power of buyers and (5) the distributor point of rivalry among established companies within an fabrication. (Hill & Jones 80) Barriers to EntryThe first force in Porters Five Forces Model is Entry Barriers. These factors are those that make it harder or easier for another(prenominal) company to enter into the industry. High barriers to entry will keep probable competitors out of the industry and low barriers to e ntry will give an break for competitors to enter into the industry if the industry returns are high enough. (Hill & Jones 82) The fewer competitors in an industry the more the existing companies can take advantage of higher(prenominal) prices and better returns. One barrier to entry is brand allegiance. Brand loyalty is very important for the sales of IBM. When personal calculators first came out you had to favour from IBM or Apple. Both calculators were great machines but when IBM became a better-known computer the name was very recognizable. Today your choice in computers is much more extensive. Even though there are many more brands to engage from IBM is still a popular name. If not for its own products it is for their platform it has. IBM congruous is a widely used term when talking about computers. umteen people when looking for a new notebook computer will then think about the name first. You may think fountainhead if the other computers are compatible then why not rip e get something that is cheaper? This is an option but the other way of looking at it is the name brand will be a better product. A second barrier to entry is switching costs. When IBM and Apple were the only computer governances to choose from people had to make a choice. When you went to buy one system then you had to buy all the software that went along with that system. Ultimately, IBM became the mor... ...oking at industry analysis is that the Five Forces model looks at an industry as a whole instead of each individual company. Bibliographywww.britannica.comHill, C. & Jones, G. Strategic management an combine approach, 5th ed. Houghton Mifflin Company Boston. 2001.www.ibm.comwww.msn.encarta.comWorld widely Web March 13, 2001, Insight.com http//www.insight.com/ mesh/apps/products/esentation_print.php?product_id=IB264747UWorld Wide Web March 13, 2001, Insight.com http//www.insight.com/web/apps/products/5B%5D=IBT264792U&product_id%5B%5D=SOFX190World Wide Web March 13, 2001, Ap ple.com http//www,apple.com/powerbook/http//store.apple.com/1-800-MY-APPLE/WeZWOLk9/0.3.0.3.29.23.0.3.3.3.1.1.0?80,30World Wide Web March 13, 2001, ZD can http//www.zdnet.com/pcmag/stories/reviews/0,6755,2676495,00.htmlWorld Wide Web March 13, 2001, Personal Technology from the besiege Street Journal, http//ptech.wsj.com/archive/ptech-20010104.htmlRupley, S. (2000, November 21). PC Magazine Apples Latest (pg.83-84)