porter's 5 forces

13
5 Khushboo Shah Akash Dhar Trilok Upadhyay Prajna Shetty Prasad Kadam

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Porter's 5 Forces presentation - Marketing Please download the file and view the presentation. Notes for each of the slides are present in the notes section (Images used for representational purposes only)

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Page 1: Porter's 5 Forces

5Khushboo Shah Akash Dhar Trilok Upadhyay Prajna Shetty Prasad Kadam

Page 2: Porter's 5 Forces

Born in May 23, 1947

Professor at The Institute for Strategy and Competitiveness, based at the Harvard business school

Leading authority on competitive strategy and the competitiveness .

Author of 18 books Competitive strategy Competitive Advantage etc.

6 times McKinsey Award winner

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Page 3: Porter's 5 Forces

RIVALRY

SUPPLIER

POWER

THREAT FROM

ENTRANTSBUYER POWER

THREAT FROM

SUBSTITUTES

Page 4: Porter's 5 Forces
Page 5: Porter's 5 Forces

Founded in July 7 ,1995

MNC telecom

In 20 countries

Services for 2G, 3G,4G• mobile s• Internet Services• Digital television• IPTV• broadband• Fixed line

Founded in 1991

British MNC Services

• Fixed Line,• mobile s• Internet Services• Digital television

World’s 2nd Largest

In 21 countries

Page 6: Porter's 5 Forces

SUPPLIER POWERBUYER POWERTHREAT FROM SUBSTITUTESTHREAT FROM NEW ENTRANTSRIVALRY

Switch Suppliers, Tower ServiceLimited Network EquipmentsProvidersSuppliers

vodafone is a cost leaderabsorb price increases from suppliers Hold suppliers costs down

Cut throat competitionNumber portability International Roaming charges Better buyer position

No bulk PurchaseNumber portabilityNew Connections and schemesNew PlansStrong Subscribers position

Heavy Capital investment Idea Cellular growing rapidlyNew licenses to new entrantsNLD/ILD Operations

Shifts from voice calls to text messageSkype & voice services gain popularity Internet powered softwaresThreat with 4G technology

Easy Avail of SubstitutesReliance had more growth rateServices like Skype, yahoo posing threatCheaper substitues

Capital intensiveUpcoming 4G costsAlready striving operators

Strong rivalsEnhanced investmentMore competitors over the years

Highly competitive marketNew packaged services like quad play Vodafone with iPhone4S

Page 7: Porter's 5 Forces

Founded in 1940

Largest chain

68 mn customers

Sells• Hamburgers• French fries• Soft drinks• milkshakes• desserts

Started in 1982 Subsidy Of YUM!

brands Sells

• Fried chicken• Hamburgers• Soft drinks• Refresher drinks

World’s 2nd Largest

In 18,875 locations

Page 8: Porter's 5 Forces

SUPPLIER POWERBUYER POWERTHREAT FROM SUBSTITUTESTHREAT FROM NEW ENTRANTSRIVALRY

Strong supplier powerWorlds largest chainMany Franchises

Lower buyer strengthNo choice for customersBrand image thru .differentiation

Many substitutesMc Donalds productsLower threat of losing customers

Competitors like Mc Donalds, pizza Hut

Primary products are differentCheap substitutes like street foodAnd home made food

Difficult to enter in this businessThreat of big brandsHigh cost of entryMore costs on research and

development

Very competitive industryStarted New products like Mc Café Introduction of breakfastsUpdated customer tastes

Low rivalryCustomers wont turn outDifferent target customersStrong position

Lower buyer bargaining powerBuyers have lesser choicesHigh demand from buyers

Helps local suppliersTight control over expensesFixed RatesToo many big giants like

McDonalds, subway etc.

Established brand nameLow barriers for entrantsBrand dominance

Page 9: Porter's 5 Forces

Founded in 1893

Carbonated soft dink

2nd largest manufacturer

Brands in 200 countries

Owns Restaurants like• KFC• Taco Bell• Pizza Hut

Founded in 1886

Carbonated drink 400 brands in 200

countries

Focus on selling syrup

Page 10: Porter's 5 Forces

SUPPLIER POWERBUYER POWERTHREAT FROM SUBSTITUTESTHREAT FROM NEW ENTRANTSRIVALRY

Raw material, labor supplySwitching costsSubstitute inputsThreat of forward integration

Putting firms under pressureBuyers price sensitivityAvail. Of substitutes

Competing with non price competitionRate of industry growthDiversity of competitorsExit barriers

Low rivalry amongst existing competitors

Rate of growth in industryCosts on advertising and innovations

Lower buyer bargaining powerConvenience StoresSelling through Vending machines

Higher entry barrierEstablished firmsDifficult to sustain Government regulations

Well brand nameSwitching to corn syrupPrice competitionLow bargaining power

Lesser AlternativesBuyer switching costsPerceived level of product

differentiation

Substitute productsSubstituted by carbonated

beverageStrong customers loyalty

Inefficient or over profit marketBarriers to entryGovernment regulationsLicensing requirementsBrand Equity

Page 11: Porter's 5 Forces

Founded in 1976 Pioneers and making

Ipad, Ipod and Iphone.

2nd largest IT Company 3rd largest mobile

manufacturer.

Finnish Manufacturer Pioneers in early

mobile industry Largest phone vendor 87k employees in 120

countries Sold To Microsoft

Page 12: Porter's 5 Forces

SUPPLIER POWERBUYER POWERTHREAT FROM SUBSTITUTESTHREAT FROM NEW ENTRANTSRIVALRY

Strong CompetitionExorbitant pricesGetting less popularExpensive Softwares

Rivals are way aheadRigid behaviorSlow paceSamsung’s consumer base

Large no. of suppliersVery strong bargaining powerStrong market shareMicrosoft power

Lower supplier powerChangeable ,supplier powerFavorable Pricing

Buyers have less choicesApple is the best in its graphicsStrong brand loyaltyHabitual Customers

Wide choices for the consumersConsumer powerPrice In-differentiationConsumer attachment

Available SubstitutesPrice DifferencesCheap HardwareStrong Brand Position

Strong brand recognitionSubstitutes like Skype, Facebook Cheaper HandsetsDurability

Higher entry barrierEstablished firmsDifficult to sustain Government regulations

Brand IdentityDifficult to sustainLowering prices

Page 13: Porter's 5 Forces