Porter’s five forces is an essential framework in assessing a company’s profitability and attractiveness based on threat of entry, threat of substitutes, bargaining power of buyers and suppliers as well as the degree of rivalry among existing firms. An industry is considered unattractive if all the five forces are high. If an industry is characterized by high competitor rivalry, threat of new entrants, high bargaining power of buyers and suppliers it will be less profitable. In this report, the author will leverage porter’s five forces to discuss the competitive forces in the industry in which Airbnb is competing. Using evidence from the supplied case study, the author will assess the attractiveness and profitability of the home sharing/hospitality/global vacation rental industry, using Porter’s 5 Forces model to guide this discussion.
Huawei is a globally recognized telecommunications, equipment and service company majorly dealing in the design, manufacture and marketing of processors, smartphones and tablets. This report mainly examines the smartphone market, one of the most prominent global oligopolies over the last 5-6 years with both high end (Apple and Samsung) and low-end market players (Huawei and Xiaomi). In the smartphone market, Huawei is a low-cost producer, the most fiercely competitive hence it faces extreme competition from especially fellow low cost Chinese rivals including Xiaomi, OPPO, Lenovo, ZTE among others who produce similar products. This report analyzes how industry competition has affected Huawei and examines the various opportunities through which Huawei can grow and develop its brand name amidst challenges. Nevertheless, Huawei still faces major threats such as major competitors who have greatly hindered its growth and development. This analysis concludes by showing major points (factors) where competition is intense and some strategies Huawei can use to overcome them.
In this case study report, we leverage the Porters five forces framework to help us to recognize and analyze the important forces that are determining the profitability of the global music streaming industry. Using Porters five forces, we will evaluate the nature of competitiveness in the global music streaming industry and the impact of the five forces on Spotify, and its competitors as well as the entire industry structure and help us understand strategies Spotify is using to stay competitive, accordingly.
The food and beverage industry market is a prominent oligopoly with three major players Nestle, Coca-Cola and Pepsi. Nestle is the largest manufacturer of consumer goods such as baby foods, chocolates, coffees, bottled water, under subsidiary brands such as Nespresso, Purina, Loreal, Kit Kat, among others that manufacture various products such as water, fruit juice, pet food, confectionary etc. It has factories in more than 86 countries that supply products in over 196 countries across the globe. Nestle faces intense competition in different markets such as the confectionary market, among others that has affected its growth in the food and beverage industry. The following analysis shows points or areas where competition from rivals such as Coca-Cola majorly affects Nestle and shows how various factors like buyer and supplier bargaining power have affected its growth while highlighting major opportunities and threats. The following BCG analysis identifies Nestle’s major products with significant revenues together with their investment opportunities and evaluates how the various market changes such as market growth, product market share affect its revenues.
The UK banking industry is highly oligopolistic with the biggest four banks Lloyds Banking Group, Barclays, Royal Bank of Scotland and HSBC bank, also referred to as the “Big Four” controlling a combined market share of 77.17% for current accounts in the UK’s banking industry. This fact is highlighted by the fact that seven in 10 current accounts in the UK are registered to one of the Big Four. This analysis shows how the Royal Bank of Scotland is affected by competitors and other substitutes like Fintech companies. It also highlights various market opportunities for the bank such as development of a fintech company to reduce competition and facilitate its growth.
Samsung electronics is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market is a prominent oligopoly with both high-end and low-end players. Samsung being a high-end market player faces intense competition from Apple and low-end players like Huawei, Xiaomi who are affecting its market share.
Using Porters five forces, the report examines how Porters five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Samsung has devised in the battle against this increased commoditization and powerful low cost rivals.
Incorporated in 2009, General Motors manufactures and sells cars, automobile parts and provides automobile finance solutions which include retail loans and lease lending. The company operates in several segments which include G.M North America, international operations, South America and GM financial company (Reuters 2018).General Motors manufactures and markets brands like Cadillac, Chevrolet and GMC among others in and outside North America as well as in its various subsidiaries like in Asia.
This report is going to analyze the competitive environment in US auto industry industry and how it is affecting GM's profitability. In doing, we will get an understanding of how GM has managed to defend against intense competition from US rivals and the strategies it uses to create 'blue oceans' that are defensible, helping it capture and maintain competitive advantage.
The music streaming industry is a prominent oligopoly with major players Spotify, Apple music, Amazon music, among others. Spotify is the largest music streaming service accounting for 47.8% market share based on streams with major competitors Apple having 10.6% market shares respectively (Wagner 2018). The music streaming service industry is very competitive and by using the Porters five forces analysis below, we discuss major ways in which the competition has affected the growth of Spotify highlighting major threats, opportunities and points at which the competition is most intense.
Using Google’s Porter’s five forces analysis, this report helps us analyze the nature of competition Google faces and how search engine industry five forces including bargaining power of buyers, suppliers, and the rest of the five forces are affecting the search engine industry and Google in particular. The report goes on to show that Googles dominance of the search engine industry is partly down to the power it wields over some of the five forces. For instance, Google wields considerable power of its suppliers and buyers, a situation compounded by the low threat posed by Google substitutes or new entrants in the search engine industry.
This report examines Nike through the lens of Porters five forces to assess how the five forces affect Nike and the sports clothing retail industry.