Business Policy
ABF123
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 1/11
This is a graded discussion: 10 points possible due Jan 10
WEEK 1: LIVE LESSON ACTIVITY - PORTER'S FIVE FORCES 5 11
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By Sunday of Week 1, answer the following:
Choose a real-life company with which you are familiarized.
After analyzing the different external environments, explain how these interact with Porter's Five Forces model in a real-life organization. Be sure to include specific examples.
You will not have to complete this activity if you attend the Weekly Live Lesson.
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 2/11
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(https:// JACQUELINE SALDANA (INSTRUCTOR) Wednesday
Hello, Class,
During yesterday's Live Lessons we covered the concept of Porter's Five Forces.
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 3/11
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This is a tool designed to evaluate pressuring forces that belong to the task environment (not inside the organization, but still not part of the general environment).
(https:// ERICA JUND (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/117507) Yesterday
Hello everyone!
Today I will again be discussing Amazon. I find that they (as a company) have plenty of data to work with in scenarios such as these! Plus, I find it fascinating how they have taken over the retail environment and are one of the largest companies of my generation.
When it comes to Porter's Five Forces of Competition, Amazon can compete in almost all five areas.
1. The threat of new entrants - There are several online companies that are trying to share of of the market. The first hurdle is the company needs to be big enough to compete with Amazon's giant enterprise. There are very few companies that can, but Walmart has now offered a yearly membership to its customers that will give them free delivery (sometimes even next day.)
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 4/11
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Walmart has an advantage because they do sell fresh groceries and their prices are competitive. Amazon has its' Amazon Fresh line of products, but it is not available everywhere. I believe Target has something similar to this and I see other grocery store chains trying to break into the market as well.
2. The bargaining power of buyers - The consumers of companies such as these are going to be more of your millennials, young professional, and young families looking for a convenient way to get everyday items delivered to their home. While it would seem that there are many options available to have fresh food items delivered to your house, having multiple yearly memberships can turn some people away and consumers will usually stick with one. It is important to be competitive in the
(https:// JINETTE NELSON (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/82356) 12:17am
Hello Class,
I have chosen Johnson & Johnson to discuss Porter’s Five Forces of Competition. Johnson & Johnson is a very old company; it never failed to prove its quality and brand name. It’s been more than fifty years since this company is serving baby products and there is no other baby product company that has taken over.
And, when it comes to Porter’s Five Forces of Competition Johnson & Johnson justify all the five points:
1. Threat of new entrants- since ages other companies and products are trying to enter into the market of baby products but couldn’t stand beside Johnson & Johnson. Because it is one of the most renowned brands for baby products and parents doesn’t like to experiment with their baby’s product, especially when it comes to quality. The foremost challenge other companies will face with Johnson & Johnson is its brand name and trust over customers.
2. Bargaining power of consumers- it is one of the most important aspects for a company to gain buyers. Johnson & Johnson buyers list includes individual buyers, doctors, wholesalers, pharmacists, and retailers. It is a brand that provides its service all across the globe and its buyer’s power is stronger. As, I discussed earlier parents don’t like to experiment with the quality of their baby’s product they most likely depend on Johnson & Johnson as there is no other
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 5/11
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alternative brand that provides the same quality baby products The overall bargaining power of buyers in Johnson &
(https:// MATTHEW MOSS (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/113786) 8:52am
Edited by Matthew Moss (https://devryu.instructure.com/courses/63803/users/113786) on Jan 9 at 8:53am
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Hello Professor,
Today I will be talking about the Apple Company and how they do with Porter's Five Forces.
Rivalry:
Apple faces the strong force of competitive rivalry or competition. This component of Porter’s Five Forces analysis model determines the intensity of the influence that competitors have on each other. In Apple’s case, this influence is based on the following external factors:
1. High aggressiveness of firms (strong force) 2. Low differentiation of products (strong force) 3. Low switching cost (strong force)
Companies like Samsung and LG aggressively compete with Apple. Such aggressiveness, observable in rapid innovation, aggressive advertising, and imitation, impose a strong force in the industry environment. Moreover, in terms of product differentiation, available products in the market are generally similar in fulfilling specific purposes.
Potential Entrants:
Apple Inc. experiences the moderate force of the threat of new entrants. This component of Porter’s Five Forces analysis
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 6/11
(https:// ALYSSA MILLER (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/112805) 10:26am
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Professor,
The company I have chosen to discuss the Porter's Five Force model is Ikea. I admittedly LOVE this company and can easily burn a whole afternoon going thru the store and of course a hole in my budget.
1. Rivalry
Ikea is known as a leading retail furniture brand not only in the US but in the world having stores even internationally. There are many other stores that could compete with Ikea on this level which would be Amazon, Wayfair, and Walmart which would make the competitive rivalry high in the furniture industry.
2. Bargaining Powers of Supplier
I would say the bargaining power of suppliers do not possess substantial bargaining power because suppliers have multiple options of local and international furniture companies. It would be important and crucial for Ikea to develop strong and effective relationships with suppliers so that they can continue to have access to supplies and product so they can continue to strive in a completive market.
3. Bargaining Powers of Buyers
The bargaining Powers of Buyers is strong because buyers just like the suppliers have multiple furniture manufactures that are selling products successfully locally and internationally.
4. Threats of New Entrants
The threat of new entrants would be low- there is already a very saturated market for furniture stores. A significant amount of financial investments would be needed in order to become a global discounted furniture retailer.
5. Threats of Substitute Products
The threat of substitute products and services are low, While there are other products and services that could substitute the brand or material type- furniture is a human necessity.
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 7/11
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(http JACQUELINE SALDANA (INSTRUCTOR) 1:28pm
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Hello, Alyssa and Class,
Thanks for these relevant analyses of companies like Ikea, Amazon, Apple, and Johnson & Johnson.
Porter's Five Forces framework was published in 1979 with the goal of helping to understand the attractiveness of an industry (Isabelle et al. 2020).
As we stated previously, the five competitive forces are the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the rivalry among existing competitors.
This framework has recently come under scrutiny and been called into question. Some scholars have the opinion that the forces have multiplied during globalization, and that companies also must also look into:
The competitor's level of innovativeness Exposure to globalization Threat of digitalization Industry exposure to de/regulation activities
Class: Do you believe that extending Porter's will be necessary? Are any of these additional forces already part of the model? What other forces would you emphasize to consider carefully in today's competitive
k t l ?
(https:// NOEL JOSEPH (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/114073) 2:31pm
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 8/11
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Hi Class,
For my company of choice, I have decided to go with Home Depot. This is a company that was primarily started to offer a one stop shop for contractors to be able to run private businesses and offer training, supplies and tools for DIY customers all while keeping costs low and offering incentives to keep customers coming back.
In regards to supporting Porters Five forces, i was quite surprised to learn that investors, employees and other stakeholders can gain insights regarding the business position of Home Depot based on the Five Forces analysis model.
1) Competitive rivalry (strong force)- Home Depot has to ensure that they maintain a competitive edge in the home improvement market. The following external factors contribute towards the force of competition:
High number of companies - Home depot has to compete against many companies in the home improvement retail market such as Lowe's, Menards and Ace Hardware Low cost - Low costs provided by the competitors make it easy for customers to move away from Home Depot Exit barriers - Due to moderate operating costs, competitors would rather stay in the market rather than moving away from the competition
2) Bargaining power of customers (strong force)- Customers have a major influence on the success of Home Depot
Low cost - Low costs provided by the competitors make it easy for customers to move away from Home Depot
(https:// ELI NOLAND (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/119659) 6:54pm
For this assignment I chose to talk about Berkshire Hathaway. I know it is one of the top publicly traded companies in the world. It's CEO is Warren Buffet who is very well known for his keen investments and business acumen. According to Investopedia, "Berkshire Hathaway originally started out in textile milling and plants. As of March of 2019 Berkshire Hathaway's market capitalization is $500 billion which ranks them fifth of all publicly traded companies according to market capitalization" (Hargrave, 2019). To put it simply, Berkshire Hathaway is a holding company that owns many companies
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 9/11
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including GEICO and Fruit of the Loom. They also have minority ownerships in companies such as Apple and HCA Healthcare.
Bargaining Power of Suppliers
If the suppliers of Berkshire Hathaway's companies increase the cost of raw material (i.e. cotton for Fruit of the Loom under ware) this could decrease the overall production of these items. The same is true of weather conditions and natural disasters. "All of these variables can increase the price of raw materials or even make them unavailable. These changes in the supply chain can effect the price that Berkshire Hathaway obtains goods" .
Bargaining Power of Customers
If there is a recession (or pandemic) consumers will not have enough money to buy a lot of Berkshire Hathaway's products
(https:// DUSTIN HOLCOMB (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/4648) 7:35pm
For this Discussion I want to stick with Apple
Rivalry- this may be one of Apple's hardest force to overcome. Apple is surrounded by competitors on every side and has more entering the market all the time. Samsung is by far the largest competitor when it comes to the cell phone market. When it comes to computers, Dell is a major competitor but Apple has a much larger loyalty base. Huawei is by far the largest growing competitor for Apple in the cell phone market and has been for the last decade.
Potential Entrants- There are few potential entrants to either the computer market or cell phone market that can compete with the large name brands already on the scene. The newest entrant into the foray would have been Google who has taken over the operating and search engine market. Very few companies could come in with enough strength to push any of the major competitors out and gain a large share in the marketplace.
Suppliers- Suppliers is a huge issue for Apple. With much of their product being manufactured in China and overseas, this causes future issues for Apple with new import taxes and the drive by consumers to buy more American. The other large
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 10/11
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issue for suppliers is with the incredible increase in technology, the amount of places Apple can go to get their materials is very limited.
Buyers- As far as buyers go, to Apple every person in the world is potential buyer who needs a new item every couple of years
(https:// MARCIE OWENS (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/113798) 7:45pm
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Hi Professor and fellow classmates,
Porter's Five Forces Analysis is an important tool for understanding the forces that shape competition within an industry. It is also useful for helping you to adjust your strategy to suit your competitive environment and to improve your potential profit.
It works by looking at the strength of five important forces that affect competition:
Supplier Power: the ability of suppliers to drive up the prices of your inputs. Buyer Power: the strength of your customers to drive down your prices. Competitive Rivalry: the strength of competition in the industry. The Threat of Substitution: the extent to which different products and services can be used in place of your own. The Threat of New Entry: the ease with which new competitors can enter the market if they see that you are making good profits (and then drive your prices down).
The company that I chose is Edward Jones.
1. Intensity of rivalry It is to inform that Porter's 5 Forces of Edward Jones: Implementing The Solutions Approach Case Help belongs to the multinational show business in the United States. The company has been engaged in supplying the services in more than ninety nations with the video as needed, products of streaming media and media provider.
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1/9/2021 Topic: Week 1: Live Lesson Activity - Porter's Five Forces
https://devryu.instructure.com/courses/63803/discussion_topics/1936769?module_item_id=8100163 11/11
(https:// BETHANY LINDSAY HAYDEN (HTTPS://DEVRYU.INSTRUCTURE.COM/COURSES/63803/USERS/105202) 9:11pm
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Hello all, the company that I chose to analyze is CD Projek Red. They are a video game developer that is known for The Witcher Franchise and the most recent controversial release of Cyber Punk 2077.
Regarding Porter's Five Forces, this is what I found when I analyzed CD Projekt Red.
1. Rivalry: Competitors include UbiSoft, Bethesda, and Rockstar (and more). All three of the companies named are video game developers and all three make similar RPG action style, open world video games, similar to those developed and released by CD Projekt Red. Unfortunately, though they have developed the highly popular Witcher series, their newly released Cyber Punk 2077 dropped them down in standing due to bugs, glitches, and dishonest advertising of the game.
2. Potential Entrants: There are many barriers to entry for this market. These include the necessity to have extensive programming skills and training, computer/software knowledge, needing a large team of developers to produce quality titles; not to mention the exorbitant amount of funding that would be needed for a startup.
3. Quantity and Quality of Suppliers: In this case the Bargaining of the Suppliers is medium, I think. In other words, it is neither particularly high or low. You could consider the actually developers to be suppliers (as much of the work is creative content), and, in that case, the bargaining power would be high because high quality developers who can produce a good titles are not as easily found as you would think. This makes them not easily replaceable, giving them higher bargaining power. However, on the flip side, the bargaining power for the suppliers for disks, and packaging would be on the lower scale because this is easy
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