Strategic Recommendation Memo

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Porter’s Five Forces

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Porter’s Five Forces

Complete 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 examples
	High	Medium	Low
*Example*		x		This is why I believe it is medium.
Threat of new entrants	x			This is the reason why the company has to maintain its quality production to avoid new entrances in the market.
Power of buyers	x			The company has ensured their factories have been fully automated to produce high quality products that are easily accepted in the market. Automation is done to cope up with the high demand of products from the Company.
Power of suppliers	x			The company has a strong global network of distributions which allows their products and services to be found easily all over the world.
Power of substitutes			x	They focus on quality products and services that are offered at premium prices thus allowing many customers to be taken care of at the same time. Thus customers don’t require substitutes.
Rivalry among competitors	x			Caterpillar ensures that they stick to their legacy of commitment to their target market and work towards meeting the expectations of their customers hence limiting the chances of competitors survival.
Complementors			x	The company is only focused to produce what the customers’ needs and not to complement another firms products or services.
References: 2021. [online] Available at: <https://www.caterpillar.com/en/brands.html> [Accessed 4 July 2021]. : https://www.caterpillar.com/