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Essay / Research Paper Abstract
This 8 page essay explains each Force in Porter's Five Force Analysis process. It then explains each of the categories and supporting factors found in Porter's generic value chain analysis process. The writer uses Wal-Mart as an excellent example in the retail industry of how information technology can be used to create value as well as a competitive advantage. Bibliography lists 6 sources.
Page Count:
8 pages (~225 words per page)
File: MM12_PGprt5wl.RTF
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Unformatted sample text from the term paper:
Five Forces Industry analysis is one that continues to be used most often to analyze a companys position in the market as well the as profitability of the industry and
an enterprise within that industry. Porter said the following five forces offer insight about any companys competitive position as well as its potential for profitability. 1. Competitive Rivalry. This has
to do with the rivalry that exists among the major players in the industry. Some of the factors that affect the degree of rivalry include the number of firms in
the industry, the fixed costs each company has, and product differentiation (Mallon, 2007; Vaneeva, 2005). 2. New Entrants. This force is about how easy it is for new entrants to
enter the foray. Many industries have barriers that make it difficult for new companies to be established. For instance, when capital outlay is extremely high, it acts as a barrier
to new companies being established. Some of the other strong barriers to entry is brand loyalty and the number and types of patents required to enter the field (Mallon, 2007;
Vaneeva, 2005). Government regulations also act as a strong barrier to entry (Vaneeva, 2005). Consider the brand loyalty both Coca-Cola and Pepsi have. These act as barriers to new beverage
companies. 3. Substitutes Products. Is it possible for a substitute product to capture the market? While it is always possible that another product that is similar will come on the
market at a lower cost, it is not likely in some industry sectors (Mallon, 2007; Vaneeva, 2005). For example, both Microsoft and Apple have a loyal following. Thus far, Microsoft
especially has not been threatened to any great extent by substitute products even though new operating systems have been introduced. Windows is still the leader in this market. Oftentimes, the
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