Five Forces Model

875 Words4 Pages
INTRODUCTION: The model originated from Michael E. Porter's 1980 book "Competitive Strategy: Techniques for Analyzing Industries and Competitors." Since then, it has become a frequently used tool for analyzing a company's industry structure and its corporate strategy. In his book, Porter identified five competitive forces that shape every single industry and market. These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry. The relationship between the different competitive forces is given below: Five Forces Model for “Super Store” A very large retail store that stocks highly diversified merchandise, such as groceries, toys, and camera equipment, or a wide variety of merchandise in a specific product line, such as computers or sporting goods that means every thing in one store. It has very potential market in Bangladesh. Considering the market in Bangladesh in this assignment my focus is to analysis the Porter’s Industry analysis model of “Super Store”. Because it helps to determine the intrinsic long run profit and attractiveness of market or market segment. The five forces that effect to enter in this market are elaborately discussed below: 1. SUPPLYERS: The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials to the super store can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, charge excessively high prices for unique resources but the available sources of suppliers are very much positive to the super store in Bangladesh. The threats and opportunities of the suppliers in super store markets in Bangladesh are presented below: Opportunities: ➢ There are huge suppliers of super store product. ➢ Supplier switching costs
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