MGT576_v1_Wk3_Porters_Five_Forces.docx.pdf

MGT/576 v1

Porter’s Five ForcesComplete the table below. For the company you’ve decided to assess in week 1, determine the strength of each of Porter’s Five Forces and of the complementors. Justify your determination with examples.

Industry force Strength Provide a justifying your determination

with examplesHigh Medium Low

Example x This is why I believe it is medium.

Threat of new entrants X P&G is an established organization with several brands, so new entrants pose no competition to their revenue and customer base.

Power of buyers X Consumers spend billions of dollars on this brand each year, so they help maintain P&G as a leader in the industry.

Power of suppliers X The delivery of products to consumers is based on suppliers being able to fulfill their demand. If there were a supply issue, this could have high potential to negatively affect revenue.

Power of substitutes X There are not many substitutes for P&G products and the ones that are on the market, have no bearing on revenue.

Rivalry among competitors X P&G dominates their industry and there is no rivalry that matches their talent and revenue base.

Complementors X There are several other smaller companies that sell products similar to those available at P&G. However, those complementors have been around for quite some time and have not been able to reduce the dominance of P&G.

References:

Brown, B., & Anthony, S. D. (2011). How P&G tripled its innovation success rate. Harvard Business Review, 89(6), 64-72.

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