Phn tch c bn - Phn tch mi trng ngnh vi m hnh 5 p lc - The Porter's Five forces model1. p lc cnh tranh ca nh cung cp

S lng v quy m nh cung cp: S lng nh cung cp s quyt nh n p lc cnh tranh, quyn lc m phn ca h i vi ngnh, doanh nghip. Nu trn th trng ch c mt vi nh cung cp c quy m ln s to p lc cnh tranh, nh hng ti ton b hot ng sn xut kinh doanh ca ngnh.

Kh nng thay th sn phm ca nh cung cp : Trong vn ny ta nghin cu kh nng thay th nhng nguyn liu u vo do cc nh cung cp v chi ph chuyn i nh cung cp (Switching Cost).

Thng tin v nh cung cp : Trong thi i hin ti thng tin lun l nhn t thc y s pht trin ca thng mi, thng tin v nh cung cp c nh hng ln ti vic la chn nh cung cp u vo cho doanh nghip.

Hin nay trn th trng ch c 2 nh cung cp chip ( B vi x l -CPU) cho my tnh l AMD v Intel. Tt c cc my tnh bn ra trn th gii u s dng b vi x l ca hai hng ny chnh v quyn lc m phn ca Intel v AMD vi cc doanh nghip sn xut my tnh l rt ln.

Mt trng hp na ngay trong ngnh cng ngh thng tin l cc sn phm ca h iu hnh Window nh Word, Excel. Cc nh sn xut my tnh khng c s la chn v cha c h iu hnh, cc sn phm son tho vn bn no p ng c nhu cu tng ng vi cc sn phm ca Mircosoft.

Vi tt c cc ngnh, nh cung cp lun gy cc p lc nht nh nu h c quy m , s tp hp v vic s hu cc ngun lc qu him. Chnh v th nhng nh cung cp cc sn phm u vo nh l (Nng dn, th th cng.... ) s c rt t quyn lc m phn i vi cc doanh nghip mc d h c s lng ln nhng h li thiu t chc.

2. p lc cnh tranh t khch hng

Khch hng l mt p lc cnh tranh c th nh hng trc tip ti ton b hot ng sn xut kinh doanh ca ngnh.

Khch hng c phn lm 2 nhm:+Khch hng l+Nh phn phi

C hai nhm u gy p lc vi doanh nghip v gi c, cht lng sn phm, dch v i km v chnh h l ngi iu khin cnh tranh trong ngnh thng qua quyt nh mua hng.Tng t nh p lc t pha nh cung cp ta xem xt cc tc ng n p lc cnh tranh t khch hng i vi ngnh+ Quy m+Tm quan trng+Chi ph chuyn i khch hng+Thng tin khch hng

c bit khi phn tch nh phn phi ta phi ch tm quan trng ca h, h c th trc tip i su vo uy hip ngay trong ni b ca doanh nghip.

Wal- Mart l nh phn phi ln c tm nh hng ton th gii, h thng phn phi ca Wal mart c th nh hng ti nhiu ngnh hng nh thc phm, hng in t , cc hng hng ha tiu dng hng ngy. Wal Mart c quyn lc m phn vi cc doanh nghip khc v gi c, cht lng sn phm cng nh cc chnh sch marketing khi a hng vo trong h thng ca mnh.

i vi cc doanh nghip va v nh ti Vit Nam, vic a cc sn phm vo h thng phn phi ca cc siu th lun gp phi kh khn v tr ngi v cc p lc v gi v cht lng. Hu ht cc sn phm ca Vit Nam nh dt may, da giy rt kh xm nhp vo cc th trng ln nh M ,EU nu khng qua h thng phn phi. Chnh v vy chng ta c lng nghe nhng cu chuyn v vic mt i giy sn xut Vit Nam bn cho nh phn phi vi gi thp cn ngi dn Vit Nam khi mua hng nc ngoi th phi chu nhng ci gi ct c so vi sn phm cng chng loi trong nc.

3.p lc cnh tranh t i th tim n:

Theo M-Porter, i th tim n l cc doanh nghip hin cha c mt trn trong ngnh nhng c th nh hng ti ngnh trong tng lai. i th tim n nhiu hay t, p lc ca h ti ngnh mnh hay yu s ph thuc vo cc yu t sau+ Sc hp dn ca ngnh: Yu t ny c th hin qua cc ch tiu nh t sut sinh li, s lng khch hng, s lng doanh nghip trong ngnh.+Nhng ro cn gia nhp ngnh : l nhng yu t lm cho vic gia nhp vo mt ngnh kh khn v tn km hn .1. K thut2. Vn3. Cc yu t thng mi : H thng phn phi, thng hiu , h thng khch hng ...4. Cc ngun lc c th: Nguyn vt liu u vo ( B kim sot ), Bng cp , pht minh sng ch, Ngun nhn lc, s bo h ca chnh ph ....Khng ai c th lng c vic Apple s cho ra i my nghe nhc Ipod nh bi ngi hng v cng ngh mutilmedia nh Sony. R rng sc hp dn ca cu cc thit b nghe nhc a Ipod tr thnh sn phm cng ngh c a chung nht. Chnh Sony t lm cc ro cn v cng ngh, thng hiu ca mnh gim st bng vic qu ch trng vo pht trin theo chiu rng nhiu ngnh ngi t hon Apple thm nhp v kim sot ton b th trng, bin li th cnh tranh ca Sony tr thnh gnh nng cho chnh h.

Tng t nh v d trn chng ta so snh trong ngnh cng nghip nng nh sn xut my bay. Ro cn gia nhp ngnh qu ln c v vn, cng ngh, nguyn vt liu u vo nn hin ti ch c 2 hng hng khng ln cnh tranh vi nhau l Airbus v Boeing. Nu khng c s t bin v cng ngh ch to ra sn phm mi hoc l ti u hn my bay ( Loi my no c th i t ni ny sang ni khc nh truyn c tch) hoc l tnh nng tng tng nhng gi v cng ngh r hn th chc chn ro cn gia nhp ngnh ch to my bay vn l ch qu xa cho cc doanh nghip khc.

4. p lc cnh tranh t sn phm thay th

Sn phm v dch v thay th l nhng sn phm, dch v c th tha mn nhu cu tng ng vi cc sn phm dch v trong ngnh.

Ta c th ly lun v d sau mi a ra cc nhn nh v p lc cnh tranh ch yu ca sn phm thay th :

Phn ln thnh vin trong Saga l cc qu ng. M cc qu ng th c s thch ung bia, ru khi ung vo ri th l say, say th cc phu nhn s khng thch. Cc bc thng li cho bn b, ng nghip, i tc .... bin c cho vic mnh tiu th lng ln bia b sung doanh thu cho cc hng bia hi. Vy bia tha mn nhu cu g :+ Gp g i tc+ T hp bn b+ Bn cng vic vi ng nghip.... cn v vn l do khc nhng ta xt trn phng din cng vic nn ch dng mt vi yu t nhn nh.

Vy sn phm thay th ca bia, ru l mt hng ha ( hoc dch v c th tha mn cc nhu cu trn). Ti y ti xin lit k mt s hng ha c th thay th c bia ru : Ung cafe, ung tr, chi th thao .Cc dch v ny c th tha mn cc nhu cu trn v thm vo mt li ch l c ch em saganor hoan nghnh.

Qua v d trn chng ta thy p lc cnh tranh ch yu ca sn phm thay th l kh nng p ng nhu cu so vi cc sn phm trong ngnh, thm vo na l cc nhn t v gi, cht lng , cc yu t khc ca mi trng nh vn ha, chnh tr, cng ngh cng s nh hng ti s e da ca sn phm thay th.

Tnh bt ng, kh d on ca sn phm thay th : Ngay c trong ni b ngnh vi s pht trin ca cng ngh cng c th to ra sn phm thay th cho ngnh mnh. in thoi di ng chnh l sn phm thay th cho in thoi c nh v sp ti l VOIP s thay th cho c hai sn phm c.

Chi ph chuyn i: Chng ta bit cc phn mm m ngun m nh Linux hay nh Vit Nam l Viet Key Linux gi thnh rt r thm ch l min ph nhng rt t ngi s dng v chi ph chuyn i t h iu hnh Window v cc ng dng trong n sang mt h iu hnh khc l rt cao v c th nh hng n hot ng, cc cng vic trn my tnh.

5. p lc cnh tranh ni b ngnh

Cc doanh nghip ang kinh doanh trong ngnh s cnh tranh trc tip vi nhau to ra sc p tr li ln ngnh to nn mt cng cnh tranh. Trong mt ngnh cc yu t sau s lm gia tng sc p cnh tranh trn cc i th+ Tnh trng ngnh : Nhu cu, tc tng trng ,s lng i th cnh tranh...+ Cu trc ca ngnh : Ngnh tp trung hay phn tn Ngnh phn tn l ngnh c rt nhiu doanh nghip cnh tranh vi nhau nhng khng c doanh nghip no c kh nng chi phi cc doanh nghip cn li Ngnh tp trung : Ngnh ch c mt hoc mt vi doanh nghip nm gi vai tr chi phi ( iu khin cnh tranh- C th coi l c quyn)+ Cc ro cn rt lui (Exit Barries) : Ging nh cc ro cn gia nhp ngnh, ro cn rt lui l cc yu t khin cho vic rt lui khi ngnh ca doanh nghip tr nn kh khn : Ro cn v cng ngh, vn u t Rng buc vi ngi lao ng Rng buc vi chnh ph, cc t chc lin quan (Stakeholder) Cc rng buc chin lc, k hoch.

Th trng cung cp dch v vin thng di ng Vit Nam hin nay c rt nhiu nh cung cp nhng quyn lc chi phi th trng vn nm trong tay 3 nh cung cp dch v vin thng l Vina Phone , Mobifone v Viettel.. Nhu cu s dng dch v ca Vit Nam tng khong 5-10%/ nm, doanh thu, li nhun ca cc nh cung cp cng tng vi con s tng ng. Mc d cho cc ro cn gia nhp ngnh, ro cn rt lui .... l cao, p lc t khch hng khng ng k nhng ang c rt nhiu doanh nghip chun b gia nhp vo th trng . Mt iu ng mng hn na l s ra i ca ngnh dch v km theo dch vu vin thng nh : Cc tng i gii tr, c cc, cc dch v khc m in hnh gn y l xem gi chng khon qua mng di ng. Vi xu hng ny sc cnh tranh trong ni b ngnh s ngy cng gia tng v lc ngi tiu dng s ngy cng c tn trng hn.

6. p lc t cc bn lin quan mt thit

y l p lc khng c cp trc tip ngay trong ma trn nhng trong quyn sch " Strategic Management & Business Policy" ca Thomas L. Wheelen v J. David Hunger c ghi ch v p lc t cc bn lin quan mt thit.+ Chnh ph+ Cng ng+ Cc hip hi+ Cc ch n, nh ti tr+ C ng+ Complementor ( Tm hiu l nh cung cp sn phm b sung cho mt hoc nhiu ngnh khc: Microsoft vit phn mm cho cc cng ty bn c my tnh, cc doanh nghip khc c th son tho vn bn bn c hng ...)

Sau khi phn tch xong m hnh 5 p lc, chng ta c th s dng nhm chin lc m t cc doanh nghip trong ngnh trn mt th.Trong iu kin hn hp ti s a ra mt s kin thc c bn xc nh nhm chin lc.+ Phng php xc nh nhm chin lc: Xy dng s + Mc ch xy dng : Phn bit cc doanh nghip vi nhau v nh v cc doanh nghip trn cng mt s , t gip cc doanh nghip c th xc nh v tr ca mnh trn th trng+ Cc tiu ch s dng xy dng s : Gi, cht lng, cng ngh, thng hiu, th phn ... v c th xy dng thnh nhiu s , nhiu cp tiu ch.

M hnh 5 p lc cnh tranh ca Michael Porter (Marketing Box) - M hnh cnh tranh hon ho ng rng tc iu chnh li nhun theo mc ri ro l tng ng nhau gia cc doanh nghip v ngnh kinh doanh. Tuy nhin, v s nghin cu kinh t khng nh rng cc ngnh khc nhau c th duy tr cc mc li nhun khc nhau v s khc bit ny phn no c gii thch bi cu trc khc nhau ca cc ngnh.

Michael Porter, nh hoch nh chin lc v cnh tranh hng u th gii hin nay, cung cp mt khung l thuyt phn tch. Trong , ng m hnh ha cc ngnh kinh doanh v cho rng ngnh kinh doanh no cng phi chu tc ng ca nm lc lng cnh tranh. Cc nh chin lc ang tm kim u th ni tri hn cc i th c th s dng m hnh ny nhm hiu r hn bi cnh ca ngnh kinh doanh mnh ang hot ng.Michael-PorterM hnh Porters Five Forces c xut bn ln u trn tp ch Harvard Business Review nm 1979 vi ni dung tm hiu yu t to ra li nhun trong kinh doanh. M hnh ny, thng c gi l Nm lc lng ca Porter, c xem l cng c hu dng v hiu qu tm hiu ngun gc li nhun. Quan trng hn c, m hnh ny cung cp cc chin lc cnh tranh doanh nghip duy tr hay tng li nhun.Cc doanh nghip thng s dng m hnh ny phn tch xem h c nn gia nhp mt th trng no , hoc hot ng trong mt th trng no khng. Tuy nhin, v mi trng kinh doanh ngy nay mang tnh ng, nn m hnh ny cn c p dng tm kim trong mt ngnh nht nh cc khu vc cn c ci thin sn sinh nhiu li nhun hn. Cc c quan chnh ph, chng hn nh y ban chng c quyn v st nhp Anh, hay B phn chng c quyn v B T php M, cng s dng m hnh ny phn tch xem liu c cng ty no ang li dng cng chng hay khng.Theo Michael Porter, cng cnh tranh trn th trng trong mt ngnh sn xut bt k chu tc ng ca 5 lc lng cnh tranh sau:1. Sc mnh nh cung cp th hin cc c im sau:- Mc tp trung ca cc nh cung cp,- Tm quan trng ca s lng sn phm i vi nh cung cp,- S khc bit ca cc nh cung cp,- nh hng ca cc yu t u vo i vi chi ph hoc s khc bit ha sn phm,- Chi ph chuyn i ca cc doanh nghip trong ngnh,- S tn ti ca cc nh cung cp thay th,- Nguy c tng cng s hp nht ca cc nh cung cp,- Chi ph cung ng so vi tng li tc ca ngnh.2. Nguy c thay th th hin :- Cc chi ph chuyn i trong s dng sn phm,- Xu hng s dng hng thay th ca khch hng,- Tng quan gia gi c v cht lng ca cc mt hng thay th.3. Cc ro cn gia nhp th hin :- Cc li th chi ph tuyt i,- S hiu bit v chu k dao ng th trng,- Kh nng tip cn cc yu t u vo,- Chnh sch ca chnh ph,- Tnh kinh t theo quy m,- Cc yu cu v vn,- Tnh c trng ca nhn hiu hng ha,- Cc chi ph chuyn i ngnh kinh doanh,- Kh nng tip cn vi knh phn phi,- Kh nng b tr a,- Cc sn phm c quyn.4. Sc mnh khch hng th hin :- V th mc c,- S lng ngi mua,- Thng tin m ngi mua c c,- Tnh c trng ca nhn hiu hng ha,- Tnh nhy cm i vi gi,- S khc bit ha sn phm,- Mc tp trung ca khch hng trong ngnh,- Mc sn c ca hng ha thay th,- ng c ca khch hng.5. Mc cnh tranh th hin :- Cc ro cn nu mun thot ra khi ngnh,- Mc tp trung ca ngnh,- Chi ph c nh/gi tr gia tng,- Tnh trng tng trng ca ngnh,- Tnh trng d tha cng sut,- Khc bit gia cc sn phm,- Cc chi ph chuyn i,- Tnh c trng ca nhn hiu hng ha,- Tnh a dng ca cc i th cnh tranh,- Tnh trng sng lc trong ngnh.Phn tch nm lc lng cnh tranh1. Mc cnh tranh (Degree of Rivalry)Trong m hnh kinh t truyn thng, cnh tranh gia cc doanh nghip i th y li nhun tin dn ti con s 0, nhng trong cuc cnh tranh ngy nay, cc doanh nghip khng ngy th n mc chu chp nhn gi mt cch th ng. Trn thc t, cc hng u c gng c c li th cnh tranh so vi i th ca mnh. Cng cnh tranh thay i khc nhau ty theo tng ngnh, v cc nh phn tch chin lc rt quan tm n nhng im khc bit .Cc nh kinh t nh gi kh nng cnh tranh theo cc ch s v mc tp trung ca ngnh, v t l tp trung (Concentration Ration CR) l mt trong nhng ch s phi k n u tin. Ch s ny cho bit phn trm th phn do 4 hng ln nht trong ngnh nm gi. Ngoi ra cn c ch s CR v t l th trng do 8, 25 v 50 hng u ngnh kim sot. Ch s cng cao cho thy mc tp trung th phn vo cc hng ln nht cng ln, ng ngha vi vic ngnh c mc tp trung cao. Nu ch c mt s hng nm gi phn ln th phn, th ngnh s mang tnh cnh tranh t hn (gn vi c quyn bn). T l tp trung thp cho thy ngnh c rt nhiu i th, trong khng c i th no chim th phn ng k. Cc th trng gm nhiu mnh ghp ny c cho l c tnh cnh tranh. Tuy nhin, t l tp trung khng phi l ch s duy nht, bi v xu hng nh ngha ngnh mang nhiu thng tin hn so vi s phn b th phn.Nu mc cnh tranh gia cc hng trong mt ngnh thp, th ngnh c coi l c k lut. K lut ny c th l kt qu ca lch s cnh tranh trong ngnh, vai tr ca hng ng u, hoc s tun th vi cc chun mc o c chung. S cu kt gia cc cng ty nhn chung l khng hp php. Trong nhng ngnh c mc cnh tranh thp, cc ng thi cnh tranh chc chn b hn ch mt cch khng chnh thc. Tuy nhin, mt cng ty khng chp nhn tun th lut l m tm kim li th cnh tranh c th lm mt i ci th trng c k lut .Khi mt i th hnh ng theo cch khin cc hng khc buc phi tr a, th tnh cnh tranh th trng s tng ln. Cng cnh tranh thng c miu t l tn khc, mnh m, va phi, hoc yu, ty theo vic cc hng n lc ginh li th cnh tranh n mc no. c c li th cnh tranh so vi cc i th, mt doanh nghip c th chn mt s ng thi cnh tranh nh sau:- Thay i gi tng hoc gim gi c c li th ngn hn.- Tng s khc bit ca sn phm ci thin cc c tnh, i mi qu trnh sn xut v i mi sn phm.- S dng cc knh phn phi mt cch sng to dng hi nhp theo chiu dc hoc s dng mt knh phn phi mi cha c trong ngnh. Chng hn nh trong ngnh bun bn kim hon, cc ca hng kim hon cao cp ngn ngi khng bn ng h, hng Timex chuyn ti cc ca hng thuc v cc i l khng truyn thng khc. Nh , hng hon ton lm ch th trng ng h c gi t thp n trung bnh.- Khai thc mi quan h vi cc nh cung cp v d, t nhng nm 1950 1970, hng Sears, Roebuck v Co. chi phi th trng hng gia dng bn l. Sears t ra cc tiu chun cht lng cao v yu cu cc nh cung cp phi p ng cc yu cu v ch s k thut v gi sn phm ca h.Cng cnh tranh chu nh hng ca cc c im ngnh sau y:S lng cng ty ln. S lng cng ty ln lm tng tnh cnh tranh, v c nhiu hng hn trong khi tng s khch hng v ngun lc khng i. Tnh cnh tranh s cng mnh hn nu cc hng ny c th phn tng ng nhau, dn n phi chin u ginh v tr chi phi th trng.Th trng tng trng chm. c im ny khin cc hng phi cnh tranh tch cc hn chim gi th phn. Trong mt th trng tng trng cao, cc hng c kh nng tng doanh thu c th ch do th trng m rng.Cc chi ph c nh cao. Chi ph c nh cao thng tn ti trong mt ngnh c tnh kinh t theo quy m, c ngha l chi ph gim khi quy m sn xut tng. Khi tng chi ph ch ln hn khng ng k so vi cc chi ph c nh, th cc hng phi sn xut gn vi tng cng sut t c mc chi ph thp nht cho tng n v sn phm. Nh vy, cc hng s phi bn mt s lng rt ln sn phm trn th trng, v v th phi tranh ginh th phn, dn n cng cnh tranh tng ln.Chi ph lu kho cao hoc sn phm d h hng. c im ny khin nh sn xut mun bn hng ha cng nhanh cng tt. Nu cng thi im , cc nh sn xut khc cng mun bn sn phm ca h th cuc cnh tranh ginh khch hng s tr nn d di.Chi ph chuyn i hng ha thp. Khi mt khch hng d dng chuyn t s dng sn phm ny sang sn phm khc, th mc cnh tranh s cao hn do cc nh sn xut phi c gng gi chn khch hng.Mc khc bit ha sn phm thp. c im ny lun dn n mc cnh tranh cao. Ngc li, nu sn phm ca cc hng khc nhau c c im hng ha khc nhau r rt s gim cnh tranh.Kh nng thay i chin lc cao. Kh nng thay i chin lc cao xy ra khi mt hng ang mt dn v th th trng ca mnh, hoc c tim nng ginh c nhiu li nhun hn. Tnh hung ny cng lm tng tnh cnh tranh trong ngnh.Cc ro cn thot ra cao. c im ny khin doanh nghip phi chu mt chi ph cao, nu mun t b khng sn xut sn phm na. V th hng buc phi cnh tranh. Ro cn ny lm cho mt doanh nghip buc phi li trong ngnh, ngay c khi cng vic kinh doanh khng thun li lm. Mt ro cn ph bin l tnh c trng ca ti sn c nh. Khi nh my v thit b c tnh chuyn mn ha cao th kh c th bn cc ti sn cho nhng ngnh khc. Vic hng Litton Industries ginh c cc thit b ca hng ng tu Ingall Shipbuilding minh ha r iu ny. Litton rt thnh cng trong thp k 1960 vi cc hp ng ng tu cho Hi qun. Nhng khi chi quc phng ca M gim xung, Litton nhn thy r kh nng gim doanh s cng nh li nhun. Hng quyt nh c cu li, nhng vic t b xng ng tu khng thc hin c, do khng bn c cc thit b ng tu t tin v mang tnh chuyn mn ha cao. Cui cng, Litton buc phi li trong th trng ng tu ang xung dc.

Mc cnh tranh trong ngnh ngn hng Vit NamBi vit ny s dng m hnh ca Michael Porter (Nm lc lng ca Porter - Porters 5 forces) nhn vo th trng ngn hng Vit Nam v phn tch nhng lc lng cnh tranh, cc xu hng pht trin cng nh c hi khai thc to nn li th cnh tranh ph hp vi ngun lc ca cc ngn hng.Nguy c t cc ngn hng miNu cc ngn hng mi d dng gia nhp th trng th mc cnh tranh s cng lc cng gia tng. Nguy c t cc ngn hng mi s ph thuc vo cao ca ro cn gia nhp. Theo cc cam kt khi gia nhp WTO, lnh vc ngn hng s c m ca dn theo l trnh by nm. Ngnh ngn hng c nhng thay i c bn khi cc t chc ti chnh nc ngoi c th nm gi c phn ca cc ngn hng Vit Nam v s xut hin ca cc ngn hng 100% vn nc ngoi. Ngay t nm 2006, Vit Nam g b dn cc hn ch v t l tham gia c phn trong ngnh ngn hng ca cc nh ch ti chnh nc ngoi theo cam kt trong Hip nh thng mi vi Hoa K. Cn theo cc cam kt trong khun kh Hip nh chung v hp tc thng mi dch v (AFAS) ca Hip hi cc nc ASEAN, Vit Nam phi g b hon ton cc quy nh v khng ch t l tham gia gp vn, dch v, gi tr giao dch ca cc ngn hng nc ngoi t nm 2008. c nm ngn hng 100% vn nc ngoi c cp php thnh lp ti Vit Nam. Tuy nhin khi nhn vo con s cc ngn hng nc ngoi c vn phng i din ti Vit Nam v cc ngn hng nc ngoi c vn c phn trong cc ngn hng thng mi ni a, s ngn hng 100% vn nc ngoi nht nh s cn tng ln trong tng lai.Cc ngn hng nc ngoi l vy, ro cn cho s xut hin ca cc ngn hng c ngun gc ni a ang c nng cao ln sau khi Chnh ph tm ngng cp php thnh lp ngn hng mi t thng 8-2008. Ngoi cc quy nh v vn iu l, qung thi gian phi lin tc c li, cc ngn hng mi thnh lp cn b gim st cht bi Ngn hng Nh nc. Tuy nhin iu s khng th ngn cn nhng doanh nghip, iu kin, tham gia vo ngnh ngn hng mt khi Chnh ph cho php thnh lp ngn hng tr li.Ro cn gia nhp cn c th hin qua cc phn khc th trng, th trng mc tiu m cc ngn hng hin ti ang nhm n, gi tr thng hiu cng nh c s khch hng, lng trung thnh ca khch hng m cc ngn hng xy dng c. Nhng iu ny c bit quan trng bi v n s quyt nh kh nng tn ti ca mt ngn hng ang mun gia nhp vo th trng Vit Nam. Mt khi cc ngn hng hin ti xy dng c cho mnh mt thng hiu bn vng, vi nhng sn phm, dch v ti chnh hiu qu v khc bit cng vi mt c s khch hng ng o v trung thnh, chi ph chuyn i (switching cost) li ko khch hng ca ngn hng mi thnh lp s cc k cao v do h bt buc phi cn nhc tht k trc khi quyt nh gia nhp th trng hay khng. Thc t trn th trng ngnh ngn hng Vit Nam cho thy chi ph chuyn i nhn chung khng cao do cc ngn hng cha tht s to c im khc bit v chin lc sn phm, dch v. Mt yu t c th lm tng chi ph chuyn i ln mt cht v to mt li th cnh tranh cho cc ngn hng ang hot ng l h thng phn phi. Cc ngn hng thnh lp sau ny s gp kh nhiu rc ri trong vic tm mt a im ng t vn phng chnh cng nh cc chi nhnh vn phng giao dch bi v cc v tr p v tin li u b cc ngn hng ang hot ng dnh mt. Tuy vy, cc ngn hng thnh lp sau ny vn c th da vo li th cng ngh pht trin h thng kinh doanh ca mnh thng qua Internet banking hoc h thng ATM.Nhn vo ngnh ngn hng Vit Nam hin ti trong bi cnh Vit Nam cng nh th gii ang b bao trm bi cuc khng hong kinh t, ro cn gia nhp kh cao khin cho nguy c xut hin ngn hng mi trong tng lai gn l kh thp. Nhng mt khi kinh t th gii hi phc cng vi s m ca ca ngnh ngn hng theo cc cam kt vi WTO v cc t chc khc, s xut hin ca cc ngn hng mi l mt iu gn nh chc chn.Nguy c b thay thC bn m ni, cc sn phm v dch v ca ngnh ngn hng Vit Nam c th xp vo 5 loi: L ni nhn cc khon tin (lng, tr cp, cp dng) L ni gi tin (tit kim) L ni thc hin cc chc nng thanh ton L ni cho vay tin L ni hot ng kiu hii vi khch hng doanh nghip, nguy c ngn hng b thay th khng cao lm do i tng khch hng ny cn s r rng cng nh cc chng t, ha n trong cc gi sn phm v dch v ca ngn hng. Nu c phin h xy ra trong qu trnh s dng sn phm, dch v th i tng khch hng ny thng chuyn sang s dng mt ngn hng khc v nhng l do trn thay v tm ti cc dch v ngoi ngn hng. i vi khch hng tiu dng th li khc, thi quen s dng tin mt khin cho ngi tiu dng Vit Nam thng gi tin mt ti nh hoc nu c ti khon th khi c tin li rt ht ra s dng. Cc c quan Chnh ph v doanh nghip tr lng qua ti khon ngn hng nhm thc y cc phng thc thanh ton khng dng tin mt, gp phn lm minh bch ti chnh cho mi ngi dn. Nhng cc a im chp nhn thanh ton bng th li a s l cc nh hng, khu mua sm sang trng, nhng ni khng phi ngi dn no cng ti mua sm. Ngay cc siu th, ngi tiu dng cng phi ch i nhn vin i ly my c th hoc i ti mt quy khc khi mun s dng th thanh ton. Chnh s bt tin ny cng vi tm l chung tin mt khin ngi tiu dng mun gi v s dng tin mt hn l thng qua ngn hng. Ngoi hnh thc gi tit kim ngn hng, ngi tiu dng Vit Nam cn c kh nhiu la chn khc nh gi ngoi t, u t vo chng khon, cc hnh thc bo him, u t vo kim loi qu (vng, kim cng) hoc u t vo nh t. l cha k cc hnh thc khng hp php nh chi hi. Khng phi lc no li sut ngn hng cng hp dn ngi tiu dng. Chng hn nh thi im ny, gi vng ang st, tng gim t bin trong ngy, trong khi la M th trng t do cng bin ng th li sut tit kim ca a s cc ngn hng ch mc 7-8% mt nm.Quyn lc ca khch hngS kin ni bt gn y nht lin quan n quyn lc ca khch hng c l l vic cc ngn hng quyt nh thu ph s dng ATM trong khi ngi tiu dng khng ng thun. Trong v vic ny, ngn hng v khch hng ai cng c l l ca mnh nhng r rng n nh hng khng t n mc hi lng v lng tin ca khch hng. Nhng khng v th m ta c th nh gi thp quyn lc ca khch hng trong ngnh ngn hng ti Vit Nam. iu quan trng nht vn l: vic sng cn ca ngn hng da trn ng vn huy ng c ca khch hng. Nu khng cn thu ht c dng vn ca khch hng th ngn hng tt nhin s b o thi. Trong khi , nh ni phn trn, nguy c thay th ca ngn hng Vit Nam, i vi khch hng tiu dng, l kh cao. Vi chi ph chuyn i thp, khch hng gn nh khng mt mt g nu mun chuyn ngun vn ca mnh ra khi ngn hng v u t vo mt ni khc.Quyn lc ca cc nh cung cpKhi nim nh cung cp trong ngnh ngn hng kh a dng. H c th l nhng c ng cung cp vn cho ngn hng hot ng, hoc l nhng cng ty chu trch nhim v h thng hoc bo tr my ATM. Hin ti Vit Nam cc ngn hng thng t u t trang thit b v chn cho mnh nhng nh cung cp ring ty theo iu kin. iu ny gp phn gim quyn lc ca nh cung cp thit b khi h khng th cung cp cho c mt th trng ln m phi cnh tranh vi cc nh cung cp khc. Tuy nhin khi tn mt khon chi ph kh ln vo u t h thng, ngn hng s khng mun thay i nh cung cp v qu tn km, iu ny li lm tng quyn lc ca nh cung cp thit b thng thu.Quyn lc ca cc c ng trong ngnh ngn hng th nh th no? Khng nhc n nhng c ng u t nh l thng qua th trng chng khon m ch ni n nhng i c ng c th c tc ng trc tip n chin lc kinh doanh ca mt ngn hng. Nhn chung hu ht cc ngn hng Vit Nam u nhn u t ca mt ngn hng khc. Quyn lc ca nh u t s tng ln rt nhiu nu nh h c c phn v vic sp nhp vi ngn hng c u t c th xy ra. mt kha cnh khc, ngn hng u t s c mt tc ng nht nh n ngn hng c u t. Cng cnh tranh ca cc doanh nghip trong ngnhTrong nm 2008, McKinsey d bo doanh s ca lnh vc ngn hng bn l Vit Nam c th tng trng n 25% trong vng 5-10 nm ti, a Vit Nam tr thnh mt trong nhng th trng ngn hng bn l c tc cao nht chu (*). Tuy khng hong kinh t lm cho tc tng trng chm li, tc ng xu ti ngnh ngn hng nhng th trng Vit Nam cha c khai ph ht, tim nng cn rt ln. nh hng tm thi ca cuc khng hong kinh t s khin cho cc ngn hng gp kh khn trong vic tm kim khch hng mi, dn n vic cng cnh tranh s tng ln. Nhng khi khng hong kinh t qua i, vi mt th trng tim nng cn ln nh Vit Nam, cc ngn hng s tp trung khai ph th trng, tm kim khch hng mi, dn n cng cnh tranh c th gim i.Cng canh tranh ca cc ngn hng cng tng cao khi c s xut hin ca nhm ngn hng 100% vn nc ngoi. Ngn hng nc ngoi thng sn c mt phn khc khch hng ring, a s l doanh nghip t nc h. H phc v nhng khch hng ny t rt lu nhng th trng khc v khi khch hng m rng th trng sang Vit Nam th ngn hng cng m vn phng i din theo. Ngn hng ngoi cng khng vng phi nhng ro cn m hin nay nhiu ngn hng trong nc ang mc phi, in hnh l hn mc cho vay chng khon, n xu trong cho vay bt ng sn. H c li th lm t u v c nhiu chn la trong khi vi khng t ngn hng trong nc th iu ny l khng th. Ngoi ra, ngn hng ngoi cn c khng t li th nh h tng dch v hn hn, dch v khch hng chuyn nghip, cng ngh tt hn (in hnh l h thng Internet banking). Quan trng hn na, l kh nng kt ni vi mng li rng khp trn nhiu nc ca ngn hng ngoi. cnh tranh vi nhm ngn hng ny, cc ngn hng trong nc trang b h thng h tng cng ngh, sn phm dch v, nhn s... kh quy m. Li th ca ngn hng trong nc l mi quan h mt thit vi khch hng c sn. Ngn hng trong nc sn sng linh hot cho vay vi mc u i i vi nhng khch hng quan trng ca h. Xu hng trong ngnh ngn hngHin nay Vit Nam ang c qu nhiu ngn hng nhng cha c mt ngn hng thc s mnh tm c quc t. Nhn chung, cc ngn hng ua nhau m rng quy m mng li huy ng nhiu vn (pht trin theo chiu rng). Vic ny dn n tnh trng cc ngn hng ang cnh tranh quyt lit vi nhau trong hot ng tn dng m qun mt cc sn phm v dch v tin ch km theo (chiu su). ng thi, cc ngn hng m rng quy m nhng do thiu ngun nhn lc c cht lng cho nn cng tc qun tr li khng theo kp quy m pht trin. Khng hong kinh t cng mang li rt nhiu kh khn cho ngnh ngn hng, mt s ngn hng khng th duy tr c mc tng trng trong nm va qua. y chnh l c s nhiu chuyn gia v sp nhp (M&A) a ra nhn nh rng xu hng sp nhp trong ngnh ngn hng ang n gn.Tuy nhin, ngnh ngn hng l mt trong nhng ngnh ngh nhy cm, do vy vic sp nhp ch c th xy ra trong vng mt, hai nm na khi ngnh ngn hng c m nhiu ca hn theo cam kt vi WTO.Using Porter's 5 Forces To Analyze StocksFundamental Analysis: Qualitative Factors Various qualitative factors can be easily attained from public information about the company of interest. A proper system of corporate governance that adheres to principles of integrity and transparent disclosures will mitigate the risks of fraudulent behavior. Furthermore, a valid system of checks and balances whereby independent third parties assess the integrity of corporate financial statements and monitor management's behavior are correlated with positive long-term stock returns. (To learn more about using qualitative factors to evaluate a company, read Qualitative Analysis: What Makes A Company Great.)Other qualitative considerations could include how well the company adapts to social, technological, economic and political change. Firms with strong political connections may often be severely crippled once this support system is removed. Similarly, if a company is entirely dependent on a current social phenomenon (such as a fad) or a single technology, changes in these variables may cripple the firm. This type of analysis is often more difficult than analysis based on fundamentals because it requires creating hypotheses that cannot easily be answered. Porter's Forces Porter's five-force framework is a qualitative tool that applies to investment analysis. The framework helps analyze a firm's competitive stance in its industry. Porter's forces examine industry-specific conditions and help investors determine how well a corporation is positioned to adapt to changes in its target market. Michael Porter's analysis serves as an alternative to Albert Humphrey's more common SWOT (strengths, weaknesses, opportunities, threats) model. Porter's five forces: The threat of substitute services or products The threat of increased competition from rivals in the market The threat of new entrants into the market The bargaining power of suppliers The bargaining power of customers Using these forces requires a solid understanding of the general industry/market, corporate business model and an appreciation for how the business can adapt to changes in market conditions. Basically, investors must analyze how a company can respond to the underlying threats. For example, it's common for a company to rank high in terms of competitive resistance on four forces and fail horribly on the fifth. Inevitably, determining how such a scenario would affect an investment's appeal is up to the investor. (Studying the market involves more than just reading financial statements. To learn to predict the direction of the market, read our tutorial on the Basics Of Technical Analysis.)Threat of Substitute Product or ServicesThe threat of substitute products or services arises when customers can easily switch to alternative products (not necessarily alternative brands). For example, in a society that experiences drastic population growth, people might begin substituting their method of primary transportation from motor vehicles to either bicycles or public transit. Such changes in behavioral patterns would hinder the performance of the automobile industry. However, to determine whether such a threat is realistic, various considerations must be made such as switching costs and the practicality of alternative products. In the previous example, if most individuals generally commute short distances on a day-to-day basis, bicycles could become a realistic threat to car makers. On the other hand, if the average daily distance one must travel is significant, people may be less inclined to switch to either buses or bikes. Threat of Increased Competition From RivalsMarket saturation will often prevent a single player from gaining an overriding sales advantage and experiencing a surge in revenue. This internal threat is present in almost every industry that is not dominated by a monopoly. When analyzing the sort of threat that competition imposes, a wide variety of factors must be considered, such as brand equity, market position, advertising expertise and technological innovation. In many situations, the largest player in industry may become obsolete if it is lacking in the traits that ensure a stable and ongoing competitive edge. Two common metrics used to determine the competitiveness of a market are the Herfindahl-Hirschman Index (HHI) and the concentration ratio. While the HHI measures market concentration and the level of competition, the concentration ratio provides a measure of the percentage of total market share held by the largest companies in the sector. Threat of New Entrants Barriers to entry are one of the most crucial components of Porter's framework. Barriers to entry can exist in the form of patents, substantial capital requirements, government regulations, access to a proper distribution network and technological expertise. Essentially, new entrants into a market will have to overcome multiple barriers if they are to compete with the already established companies. If the industry requires significant initial capital expenditures, smaller firms will simply be unable to enter the market. (Learn more about barriers to entry in Economic Moats: A Successful Company's Best Defense.)Quite often, a firm will be the first on the market with an innovative technology or service that either automatically creates or revolutionizes the way business is done in a particular market. Unless there are firm barriers to entry, competitors can easily enter the market and replicate the prosperous firm's business model, thus diminishing the original company's returns. When entry barriers are lacking, those companies already in the industry will see their margins reduced and experience a subsequent share price decline as competition forces the convergence to normal profit levels. Bargaining Power of SuppliersThe threat of disproportionate supplier bargaining power is typically a problem for smaller companies that are exclusively dependent on the inputs provided by one seller. For example, if a restaurant that specializes in unique dishes is only able to purchase the ingredients from a single provider, that supplier can easily increase the prices it charges. This will either decrease margins for the restaurant, or the restaurant will have to pass the additional costs of the ingredients on to its diners. (One of the main factors that determine pricing is the law of supply and demand. Learn more in our tutorial, Economic Basics: Demand and Supply.)Large retailers such as Wal-Mart and Target are generally not at the mercy of their suppliers since they have access to a wide distribution network. Smaller niche businesses, however, may face a realistic threat of price hikes from suppliers. Gaining access to this type of information - who a business's suppliers are and what the existing relationship between the buyers and sellers is usually requires extensive research. Bargaining Power of CustomersWhen Wal-Mart and Target are viewed as the customers of a transaction, they exert a substantial amount of buying power. Many businesses are dependent on large department/retail stores to continue purchasing from them therefore buyers can negotiate favorable price contracts and minimize the revenue potential of their suppliers. This threat is the opposite of the bargaining-power-of-suppliers concern. Similar to the basic portfolio theory, which states that investors should diversify their holdings in order to minimize their exposure to any one security, safe companies should not be entirely dependent on a single customer. If one customer does not renew its contract, for example, this should not be enough to bankrupt the supplier. Having a diverse customer base is key to mitigating this threat. The Bottom LinePorter's analysis framework defines the important criteria to determine the stability of a corporation. High threat levels typically signal that future profits may deteriorate, and vice versa. For example, a hot firm in a growing industry might quickly become obsolete if barriers to entry are not present. Likewise, a company selling products for which there are numerous substitutes will not be able to exercise pricing power to improve its margins, and it may even lose market share to its competitors. The qualitative measures introduced by Michael Porter in Porter's five-force framework allow investors to draw conclusions about a corporation that are not immediately apparent on the balance sheet, but will have a material impact on future performance. Although quantitative factors such as the price/earnings and debt/equity ratio are often the primary concerns for investors, qualitative criteria play an equal role in uncovering stocks that will provide long-term value.Applying Michael Porters Five Forces to EquityInvesting While some people see equity investing as a technical exercise that involves interpreting price charts and others see it as a purely quantitative process that involves estimating the value of the company based upon its share price near-term earnings potential compared to competitors, I take the view that making successful long-term investments necessitates an understanding of the companies underlying competitive positions. I also believe that optimum the framework for such an analysis is that set out by Harvard Business School Professor Michael E. Porter in his 1979 article How Competitive Forces Shape Strategy. Porter used the article to introduce his now-famous five-forces that can be used to determine whether or not a company has a sustainable competitive advantage. The forces are: (1) the threat of entry; (2) the power of suppliers; (3) the power of buyers; (4) the threat of substitute products or services; and (5) jockeying for position among current competitors. We will take each in turn.Threat of EntryAlso known as barriers to entry, this concept involves the analysis of how easy it is for new competitors to enter the industry and consequently compete-away the profits currently earned by existing competitors within the industry. Porter lists the following barriers to entry: Economies of scale. These can occur in manufacturing (eg Siemens, ABB, GE), marketing (eg. Vodafone, ABInBev), purchasing, financial (larger companies tend to benefit from a lower cost of capital) and managerial (larger companies can hire more specialised workers). Product differentiation. This can be seen most clearly in the branded consumer goods industry (eg. Coca-Cola, LVMH) but it also occurs in any industry where the end product is both essential and relatively technologically unique (eg. pharmaceuticals, defence hardware). By selling a branded differentiated product, consumers may be willing to pay a premium price for a relatively cheap physical good due to either loyalty or the intangible connotations attached to being seen with such a product. With unique essential technology, a company can become a legal monopolist, but only so long as the product is not superseded, the patent remains in force, and/or its use remains essential. Capital requirements. This is arguably a consequence of economies of scale rather than a separate barrier in its own right. Where economies of scale exist, new competitors need to enter a market in size, committing large amounts of capital to purchase fixed assets, to finance inventory and receivables and to finance initial operating losses. Clearly, the greater are the economies of scale, the greater the expected capital requirements to enter the industry. Higher capital requirements mean the pool of potential entrants is much reduced, limiting the threat of entry. Cost advantages independent of size. Such advantages include experience (eg. many medium-sized companies in the German & Japanese manufacturing industries), access to unique assets (eg. particular raw material deposits in the mining industry), proprietary technology (eg. Nippon Electric Glass), favourable supply agreements and government subsidies (eg. Boeing and EADS). Access to distribution channels. For many consumer goods, the supply-chain is controlled by a small number of participants in each segment, which often includes the retailers and existing product manufacturers. This can prevent new entrants from getting their products to market. Government policy. In certain industries, governments award either monopoly or preferential rights to particular operators, preventing or limiting by law entry of potential competitors. Utilities in most countries would fall into this category. Sometimes this happens by accident rather than on purpose, as heavy government regulation (eg in the financial sector and the healthcare sector) acts to create a high cost of entry for potential new competitors.Power of SuppliersWhere suppliers can exert power over a particular business or industry due to their possession of a stronger competitive position, it is almost certain that such a group of suppliers will raise prices and/or restrict output in order to improve their own returns on capital at the expense of the buyers. Porter identifies the following situations which allow suppliers to exert such power over their customers: It is dominated by a few companies and is more concentrated than the industry it sells to. An example in this case would be the iron ore industry, the seaborne trade for which is dominated by BHP Billiton, Rio Tinto and Vale. Iron ore is an essential raw material used in the production of steel, an industry which is much less concentrated than iron ore. Its product is unique or at least differentiated. An example of this would be ARM Holdings, which designs the chip-set used in the Apple iPod, iPhone and iPad. Although ARM Holdings is a tiny company, it can still earn high returns due to the specialist nature of its product. Switching costs exist. Switching costs are one-off costs that need to be paid in order to change suppliers and do not just include cash costs but also the likelihood of business disruption that may be caused by the change. Examples include changing software provider (eg. SAP and Oracle benefit in this way) or logistics supplier. It poses a credible threat of integrating forward into the industrys business. An example here is the bulk chemicals industry, as participants in the downstream oil industry could easily integrate forward if they so chose (indeed, many are integrated in such a manner). The industry is not an important customer of the supplier group.Power of BuyersSimilar to those that face powerful suppliers, companies that face strong buyers or buyer groups can find that they or forced to offer favourable prices or credit terms in order to retain customers. Porter suggests the following factors that enable buying groups to squeeze their suppliers for better pricing: It is concentrated or purchases in large volumes. An example of this is the automotive manufacturing industry, which purchases many relatively undifferentiated components from suppliers who have few if any other customers. This allows to auto industry to set keen prices for many of its purchases. The products it purchases from the industry are standard or undifferentiated. This is a problem for the paper and packaging industry, as most market participants manufacture identical or relatively standardised products. The bulk chemical industries face the same issue as its outputs are by definition chemically identical. The products it purchases from the industry form a component of its product and represent a significant fraction of its cost. Supermarkets are a good example of this point and of the subsequent point. Cost of goods sold represents the bulk of a supermarkets cost and are sold-on to the customer at relatively low margins, creating a strong incentive to bear-down heavily on input costs. It earns low profit margins, which create great incentive to lower purchasing costs. The industrys product is unimportant to the quality of the buyers products or services. Business support services such as the provision of office-cleaning and waste removal both fall into this category. The industrys product does not save the buyer money. This statement applies to the entire cost of goods sold for a retailer (ie. products are sold to the customer in the same form they are purchased from suppliers) and many of the input costs of a manufacturer. Consequently, reducing the costs of such inputs allows the buyer to pass the savings on to customers (thus becoming more competitive on price and potentially increasing revenue) or to increase profit margins. The buyers pose a credible threat of integrating backward to make the industrys product. This is a threat which can easily be made by large capital goods manufacturers such as GE, Siemens and ABB, who have the capital and the knowledge to produce many of their component inputs if they are unhappy with the pricing on offer from suppliers.Threat of SubstitutesPorter notes that where a product or service is unique (and therefore has no substitutes), companies are able to charge much higher prices than if the face competition from alternatives. Good examples of this are certain raw materials which have unique properties, such as the platinum group metals (used in automotive catalytic converters) and rare earth metals (used in electronic equipment). Porter believes that where substitutes do exist, those that require most management [and investor] attention are those that: (1) are benefiting from trends improving their price-performance trade-off relative to the industrys product; or (2) are produced by industries which currently earn high profits. He notes that substitutes can arrive rapidly if technological developments create significant price reductions or performance improvements.Jockeying for PositionPorter argues that the intensity of competition is likely to be greatest when the following conditions are present within an industry: Competitors are numerous or are roughly equal in size and power. Industry growth is slow, precipitating fights for market share that involve expansion-minded members. The packaging industry suffers from this characteristic. Although incomes are growing in the developed world, the marginal pound of income is generally spent on services (healthcare, leisure, tourism, etc), meaning the market for packaging grows only in the low single digits (it is not economical to transport packaging). This leads to occasional price wars as rivals seek to out-grow each other. The product or service lacks differentiation or switching costs which lock in buyers and protect one combatant from raids on its customers by another. A good example of this is the paper industry, as the product is homogenous and switching costs are zero (indeed, most large printers will source their paper from a number of suppliers). Fixed costs are high or the product is perishable, creating strong temptation to cut prices. A good example of this is the airline industry, as any empty seats perish as soon as the plane takes-off, while the marginal cost of carrying an additional passenger on a flight is almost zero (small additional fuel cost and possibly some free drinks/low-quality food). Consequently, small declines in customer demand can lead to large declines in industry pricing. Capacity is normally augmented in large increments. A good example of this is chemical industry. Given the economies of scale that are present, any new chemical plant has to be very large in order to be competitive on price. Consequently, capacity additions need to occur in large amounts. This can destabilise pricing equilibrium when the new capacity comes into production. I would also add to this that capacity additions which are subject to long time-lags between the investment decision being made and the arrival on the market of the new products generally lead to more unstable and competitive industries. An example of this would be the wine industry, as new vines do not generally bear a crop until the third year after planting and take around six years to bear a full crop. Consequently, the wine industry is plagued by occasional supply gluts which act to drive-down prices, as recently happened in Australia. Exit barriers are high. This is most significant in industries where significant investments have been made in fixed assets (also known as sunk costs), such as the auto industry or the airline industry. Such fixed assets tend to be sold to rather than destroyed upon bankruptcy of a market participant, making it difficult for the industry to reduce supply to bring it into line with demand. Airlines may regularly go bankrupt, but the planes always live to fly another day, maintaining overcapacity in the industry (I recognise that planes get put in storage in the Mojave Desert, but these quickly come back into the market once supply and demand start moving back towards balance). The rivals are diverse in strategies, origins and personalities. An example of this is the oil industry, where large integrated firms (eg Exxon-Mobil, BP, Shell) compete with nationalised/semi-nationalised state-champions (eg. Petrobras, Saudi Aramco, Gazprom) and a plethora of small exploration and production companies. The interaction of politics, long investment time-lags, variable progress in energy efficiency improvements and the diversity of operators has led to many booms and busts in the oil exploration and production industry.At this point in his paper, Porter begins to give advice to company managers as to how they can incorporate this analytical framework into their business strategy; however, he gives no advice to shareholders as to how they might consider this analysis as part of their investment process. I would make the following suggestions on this subject:1. Progressing beyond the Graham-Dodd value investing strategy, it may be justifiable to pay a higher multiple of earnings or book value for a company that has been identified to possess a long-term competitive advantage and therefore has the ability to increase prices and earnings over time.2. Changes in the five forces can lead to major turning points for companies and industries which may give rise to significant changes in company profitability. Consequently, identifying such changes prior to other investors can lead to opportunities to earn handsome profits (or protect against disastrous losses).3. Certain industries fare particularly badly on the five forces model (eg. paper & packaging, airlines) and I would argue that these should be avoided for long-term equity investments. However, that is not to say that companies operating in these industries do not present occasional interesting trading opportunities at certain points in the profitability cycle or from a special situations perspective.Porter's Five Forces: Analyzing the CompetitionWhether you are starting a new business or looking for more insight into your existing company's prospects, you probably have questions about the competition. One way to answer those questions is by using Porter's Five Forces model.Originally developed by Harvard Business School's Michael E. Porter in 1979, the five forces model looks at five specific factors that help determine whether or not a business can be profitable, based on other businesses in the industry."Understanding the competitive forces, and their underlying causes, reveals the roots of an industry's current profitability while providing a framework for anticipating and influencing competition (and profitability) over time," Porter wrote in a Harvard Business Review article. "A healthy industry structure should be as much a competitive concern to strategists as their companys own position." According to Porter, the origin of profitability is identical regardless of industry. In that light, industry structure is what ultimately drives competition and profitability not whether an industry produces a product or service, is emerging or mature, high-tech or low-tech, regulated or unregulated."If the forces are intense, as they are in such industries as airlines, textiles, and hotels, almost no company earns attractive returns on investment," Porter wrote. "If the forces are benign, as they are in industries such as software, soft drinks, and toiletries, many companies are profitable."Understanding the Five ForcesPorter regarded understanding both the competitive forces and the overall industry structure as crucial for effective strategic decision-making. In Porter's model, the five forces that shape industry competition are:Competitive rivalry.This force examines how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each is capable of doing. Rivalry competition is high when there are just a few businesses equally selling a product or service, when the industry is growing and when consumers can easily switch to a competitors offering for little cost. When rivalry competition is high, advertising and price wars can ensue, which can hurt a business's bottom line. Rivalry is quantitatively measured by the Concentration Ratio (CR), which is the percentage of market share owned by the four largest firms in an industry.Bargaining power of suppliers.This force analyzes how much power a business's supplier has and how much control it has over the potential to raise its prices, which, in turn, would lower a business's profitability. In addition, it looks at the number of suppliers available: The fewer there are, the more power they have. Businesses are in a better position when there are a multitude of suppliers. Sources of supplier power also include the switching costs of firms in the industry, the presence of available substitutes, and the supply purchase cost relative to substitutes.Bargaining power of customers.This force looks at the power of the consumer to affect pricing and quality. Consumers have power when there aren't many of them, but lots of sellers, as well as when it is easy to switch from one business's products or services to another. Buying power is low when consumers purchase products in small amounts and the seller's product is very different from any of its competitors.Threat of new entrants.This force examines how easy or difficult it is for competitors to join the marketplace in the industry being examined. The easier it is for a competitor to join the marketplace, the greater the risk of a business's market share being depleted. Barriers to entry include absolute cost advantages, access to inputs, economies of scale and well-recognized brands.Threat of substitute products or services.This force studies how easy it is for consumers to switch from a business's product or service to that of a competitor. It looks at how many competitors there are, how their prices and quality compare to the business being examined and how much of a profit those competitors are earning, which would determine if they have the ability to lower their costs even more. The threat of substitutes are informed by switching costs, both immediate and long-term, as well as a buyer's inclination to change.Example of Porter's Five ForcesThere are several examples of how Porter's Five Forces can be applied to various industries online. As an example, stock analysis firm Trefislooked at how Under Armour fits into the athletic footwear and apparel industry.Competitive rivalry Under Armour faces intense competition from Nike, Adidasand newer players. Nike and Adidas, which have considerably larger resources at their disposal, are making a play within the performance apparel market to gain market share in this up-and-coming product category. Under Armour does not hold any fabric or process patents, and hence its product portfolio could be copied in the future.Bargaining power of suppliers A diverse supplier base limits bargaining power. In 2012, Under Armour's products were produced by 27 manufacturers located across 14 countries. Of these, the top 10 accounted for 49 percent of the products manufactured.Bargaining power of customers Under Armour'scustomers include both wholesale customers as well as end customers. Wholesale customers, like Dick's Sporting Goods and the Sports Authority, hold a certain degree of bargaining leverage, as they could substitute Under Armour's products with other competitors' to gain higher margins. Bargaining power of end customers is lower as Under Armour enjoys strong brand recognition.Threat of new entrants Large capital costs are required for branding, advertising and creating product demand, and hence this limits the entry of newer players in the sports apparel market. However, existing companies in the sports apparel industry could enter the performance apparel market in the future.Threat of substitute products The demand for performance apparel, sports footwear and accessories is expected to continue, and hence we think this force does not threaten Under Armour in theforeseeablefuture.Trefis has also completed Porter's Five Forces analyses of companies, including Facebook, Nike, Coachand Ralph Lauren.Strategies for successOnce your analysis is complete, it is time to implement a strategy to expand your competitive advantage. To that end, Porter identified three "generic strategies"that can be implemented in any industry, and in companies of any size:Cost leadership:In this strategy, your goal is to increase profits by reducing costs while charging industry-standard prices, or to increase market share by reducing the sales price while retaining profits.Differentiation: This strategy aims to make the company's products significantly different from the competition, improving their competitiveness and value to the public. This strategy requires both good research and development and effective sales and marketing teams.Focus: In the focus strategy, businesses select niche markets in which to sell their goods. This strategy requires intense understanding of the marketplace, its sellers, buyers and competitors. The use of this strategy frequently requires the companies to also implement a cost leadership or differentiation position.Porter said the new strategy should be executed at the corporate, business unit and departmental levels. Of these, Porter considered the business unit most significant.More information about the generic strategies is available in Porter's 1985 book, Competitive Advantage(Free Press).Alternatives and addendumsWhile Porter's Five Forces is an effective and time-tested model, it has been criticized for failing to explain strategic alliances. In the 1990s, Yale School of Management professors Adam Brandenbuger and Bare Nalebuff created the idea of a sixth force, "complementors," using the tools of game theory. In their model, complementors sell products and services that are best used in conjunction with a product or service from a competitor. Intel, which manufactures processors, and computer manufacturer Apple could be considered complementors in this model. More information can be found at Strategic CFO.Regardless of whether the complement force is potent in your company's industry, additional modeling tools are likely to help you round out your understanding of your business and its potential. A value chain analysisaims to help companies understand where they have the best productive advantage, while the BCG matrixhelps companies identify which products are likely to benefit the most from increased investment.