Managing in global economy

Porter’s Five Forces

(1) Competitive Rivalry-number and strength of competitors. Who are they and how do they impact your business? You have no competitors, really? Are you sure?

(2) Supplier Power-how easy is it for suppliers to raise their prices? Do you have limited suppliers and limited resources? One example we used was plastic pellets, you need oil, and the number of suppliers is limited.

(3) Buyer Power-how easy is it for buyers to bring your prices down? Do they have many alternatives or choices to buy your type of product or an alternative?

(4) Threat of substitution. Can your product be replaced? We talked about Blockbuster Video, 5 billion dollar company gone. It was substituted by Redbox and Netflix

(5) Threat of new entry- companies ability to enter into your market. How easy is it, what type of barriers do they have to go through and what would your company have to do to enter a new market?

1) Attached is the Porters 5 Forces, this will be part of your papers. 4) For your company papers-SWOT analysis. Strengths of your product line, maybe have three products for the example question. Weaknesses of each. Opportunities-where else can we market the product. Threats- similar to Porters, but like the example of beer companies, threats like lowering the DWI and taxing liquor more-how does that threaten your business? 8) On the company, do the Porters and the SWOT analysis. Which country doesn't the company sell product to-why do you think? You want to expand your products into a country that isn't receiving it, you have to research how easily or difficult that would be. Pick a few products from the portfolio.