it policy and statergy
robertjameson
EmmasGarden111.pptxEmma’s Garden
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IT is required in any business organization for the purposes of innovation and quick implementation of business plans and processes. For IT to be effective in a firm different policies and strategies must be put in place. The Porter Five Forces analysis is one model suitable for any industry analysis. The case of Emma’s Garden presents different scenarios of a market in terms of competition.
Threat of new entrants
Bargaining power of customers
Bargaining power of suppliers
Threat of substitutes
Introduction
The 5 forces are important in a company because they measure and monitor performance, effectiveness of strategies, and analysis of the industry.
Emma’s Garden needs
To reach its customers in over 100 different businesses
Operate the five farms in the eastern part of U.S.
Maintain contract with Seaboard Deliveries
Expand its product line to dairy products, coffee and juices.
Increase customer base
Perfectly utilise the $750, 000000 IT budget improvement
Such goals require a good strategy to implement, manage and coordinate the human and machine resources.
Cont..,
Emma’s Garden is likely to face stiff competition since it is easier for other companies to enter the market of groceries. However with the advent of technology, product differentiation and proper marketing skills can help beat competition. Porter, (2008) suggests the following strategies on how to manage new entrants in market.
Gaining loyalty of end users
Enough capital
Government regulation to entry
Acquiring skills
Access to distribution channels
Retaliations expected
Product differentiations.
Porter’s Five Forces Model: Threat of New Entrants
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According to porter, the power of customers depends on
The extent of concentration of buyers
Access to information
Few switching costs
Threat to backward integration
Undifferentiated products (Porter, 2008).
Porter’s Five Forces Model: Bargaining Power of Customers
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porter, (2008) suggests that evaluation of substitute products can be through:
Checking availability of close substitutes
Prices of substitutes
Quality of substitutes
Porter’s Five Forces Model: Rivalry Among Competitors
Rivalry among competitors comes through
Price competition
Advertising
Increase in consumer warranties
Introducing new products (Porter, 2008).
(Burgelman, Maidique & Wheelwright, 1996). Proposes the use of technology through innovation increase the competitiveness of a product.
Porters five Forces Model: Threat of Substitutes
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Porter, M. E. (2008). Competitive strategy: Techniques for analyzing industries and competitors. Simon and Schuster.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
Burgelman, R. A., Maidique, M. A., & Wheelwright, S. C. (1996). Strategic management of technology and innovation(Vol. 2). Chicago, IL: Irwin.
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