Porters Five Forces Analysis Aids Marketing Essay

Porters Five Forces Analysis Aids Marketing Essay Introduction Porters Five Forces Analysis aids a business in cross checking a competitive environment. It has similarities with other tools for environmental analysis, such as PEST analysis, but is more likely to focus on the single or a stand alone, business rather than a single product or range of products, before Michael E Porter devised the five forces model there was a way of think which implied that due to competition the rate of return in an industry would be constant across all firms and industries, this way of thinking contrasted a number of studies which has identified that different industries were in fact able to maintain different levels of profit which was due to the way a industry was structured. different industries can sustain different levels of profitability (Porter, M (23/04/10). Competitive Strategy: Techniques for Analyzing Industries and Competitors) Michael E Porter presented a structure that replicates an industry as being influenced by five forces. These five forcers are barriers to entry, supplier power, threats of substitutes, buyer power and degree of rivalry with in the industry. Based on this analysis, a company can develop a competitive strategy for gaining and sustaining competitive advantages over rival firms and thereby generating above-average return on investments. (Niederhut-Bollmann, C, Theuvsen, L,. (23/04/2010). Strategic management in turbulent markets) Porters Five Forces provide a simple framework to analysis an industry structure and view its potential for profitability. It works by looking at the strength of five important forces that affect competition. Rivalry With reference to economics, competition among companies will forces over all profits to zero (Iupindia, D. (24/4/10). Journal of Applied Economics), but because there is no-such thing as perfect competition firms in any industry will continue to attempt to achieve a competitive advantage over rival companies, to help a company achieve an advantage over its competitors it can use a number of competitive moves such as: Changing the prices of its service or product, Improving product differentiation, using the most appropriate channels of distribution or developing relationships with suppliers. (Porter, Michael E.. (24/4/10). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY ) When classifying the intensity of a companys rivalry there a number of different unique points which help to identify how competitive that industry is. If there are a number of large firms in an industry these firms are competing for the same customers and resources (Porter, Michael E. (25/4/10). How competitive forces shape strategy). This rivalry increases if the companies in the industry all have equal market share. Slow market growth will also cause an increase in rivalry as firms are forced to compete for limited market share in contrast an industry which is growing rapidly will have higher revenue and a bigger market share due to the fact that there are so many emerging consumers. Added to the slow market growth and the number of firms in an industry, low product differentiation can also affect the amount of rivalry in an industry a perfect example is the Smartphone industry, all the phone are the same and offering the same benefits to the consumer. But by offering or creating a brand identity a company can restrict the amount of rivalry in the industry again a example is in the Smartphone industry Apple has been able to create a successful brand which differentiates them from there competitors. When an industry is producing higher profits it entices new entrants into the market this in turn increase the amount of rivalry. At a certain point in the product life cycle an industry will have too many competitors and the industry can become crowed, with all these business producing the same product the market becomes saturated creating a position of too many products and not enough buyers Threat of Substitutes The Threat of Substitutes means other products which are in other industries affecting the product which is being produced. If a substitute product is limiting the ability of the industry to raise prices it falls in to the category of a substitute. For example BHP Billiton is a mining company which extracts minerals from the ground such as iron ore another mining company which extracts oil from the ocean would be a substitute. While the threat of substitute normaly affects an industry via a completive price strategy it can also pose a threat in areas such as technology and resources. Buyer Power When an industry has a strong buyer power it suggests that the consumers have an impact on the companies. These buyers are able to set prices and dictate to the industries what they want; this is prevalent in industries where there are many suppliers and only one buyer for example in the car manufacturing industry there are many makers of cars and they all need tires but there are only a few companies that make tiers. Supplier Power If an industry requires raw materials such as metal, labor or commodities it creates a relationship with a company that supplies the specific need and want that the industry is looking for. If the supplier are powerful and have a large market share they are able to influence the producing industry a perfect example of this is BHP Billiton. BHP Billiton is able to sell its raw materials such as iron ore to countries such as china at higher price which allows the company to capture some of the profits which are had by the metal industry. Barriers to Entry New firms entering an industry affect competition Barriers to entry benefit existing companies already operating in an industry because  they  protect  an established companys  revenues and profits from being whittled away by  new competitors.( J Cramer. (01/05/2010). Barriers To Entry. Available) Barriers can be exploited and used to improve the competitive advantage of the company. These barriers can be caused by the Government who regulate some industries by allowing monopolies for example Telstra who have a monopoly over the telecommunication business, legal patents which are used by companies who have a entrepreneurial idea, having specific assets such as technology which is required to produce a particular product and having cost effective economies of scale which is the point where the cost of producing a unit is at a minimum. Porter five forcers can also be used to determine the attractiveness of an industry or market as measured by the long-term return on investment of a average firm which depends largely on the five factors Michael E Porter developed, these factors influence Profitability, The intensity of competition among existing competitors, the existence of potential competitors who will enter if profits are high, substitute products that will attract customers if prices become high, the bargaining power of the customer and the bargaining power of suppliers (Aaker, D (23/04/10). Strategic Market Management) As BHP Billiton has a lot of financial strength which has been created though well planed cash flow and balance sheets, a variety of products and customers, as well as access to global assets and an always expanding stage of prospects, they are able to determine how a buyers must act an example of this is when BHP Billiton dictated iron-ore prices to steelmakers (Sarah-Jane Tasker. (23/04/2010). Giant iron ore producers are dictating price, says Beijing) In 2009 BHP Billiton and Rio Tinto Signed a Joint Venture which allowed the two companies to control and encompasses all current and future Western Australian iron ore assets and liabilities, this has decreased the amount of competition in the mining industry, as well as eliminating the threat of potential entrants, the joint venture has also allowed the two companies to increased there barging power in terms of exporting the iron-ore, at the same time cutting the bargaining power of those customers, as there is not substitutes for minerals BHP Billiton and Rio Tinto will be able to continue to create a profit in the industry. There are some arguments which view the Porters five force model as out of date and touch with the twenty-first century way of conducting business. Dagmar Recklies who has extensive experience in the strategic analysis of markets, companies and business models also a wide knowledge in the development and implementation of concepts for strategic planning writes that Porters ideas have become more and more subject of critique under the impression of the developing Internet economy during the last decade. Critics point out that economic conditions have changed fundamentally since that time. The rise of the Internet and of various e-business applications has strongly influenced nearly all industries. (Recklies, D. (2/5/10). Beyond Porter A Critique of the Critique of Porter) As Michael E Porter is viewed as one of the most influential people in the strategic management way of thinking; his models have grown and are being used by managers and business all around the world, even though his models are based on the economic situations in the eighties his theories are still relent even in a time where a majority of business is done on line. I believe internet competition in any industry has increased. The internet allows business to trade and stay competitive not only locally but global. Many products and even some service operate solely online for example using the porters five force model and applying it to the internet and companies which use only internet it is possible to explain how a business can remain completive. Buyer power Customers are able to have a better buyer power when there are more choices in an industry, as with business operating via the internet offering a wider choice of goods and services at lower cost play to how a customer wants to purchase, an example of this is eBay there are millions of different products at lower then retail cost meaning that consumers have a wide choice of products. Supplier power Supplier power is the opposite to buyer power where by buyers have less choices in an industry in relation to the internet and purchasing products on the internet companies such as Google dominate the internet, other companies use this website as a vehicle to recommend there product to the consumer while paying Google for the opportunity to advertise via there site. Threat of substitutes As stated early the threat of substitute is high when there are many product options. The internet allows a consumer to shop around and purchase there product form other countries or business where the cost of manufacturing is cheaper. Barriers to entry The threat of a new entrant into the market which you are competing in is high, it is very easy for a local business to setup an internet website and start selling there product. Even though there is high competition on the internet there is always an opportunity for a business to sell or offer a new product or service. Rivalry In relation to business operating via the internet there is extensive amount of rivalry which will effect how a modern day internet business is able to gain a competitive advantage but by viewing the above factors it will allow the particular business to view the correct direction and strength to successful attain a profit Porters Five Forces Model can help demonstrate the attractiveness of starting an on-line business. A business person should use the model to identify competition, make a plan, and implement the process. (Bennett, J. (2/5/2010). Porters Five Forces Model And Internet Competition) As stated in the article by J, Bennett porters five force model is still applicable to the way companies do business on the internet you still need to assess you Buyer Power, Supplier power, what threats you product or service has and what the barriers to entry are Even through Dagmar Recklies states that: these models cannot explain or analyze todays dynamic changes and have the power to transform whole industries (Recklies, D. (2/5/10). Beyond Porter A Critique of the Critique of Porter) what needs to be understood is that the business running on the internet are still business and they are still subjected to industry competition and that porters five force model will still help a company to analysis how competitive there industry is. There are a number of other models which would help a company determine how competitive the industry is that they are competing in. The Ansoff Matrix proposes that a company will mature whether it markets new or existing products in a new or existing market. If done correctly the Ansoff Matrix will be able to guide a company by suggesting a growth strategy such as; Market penetration, product development, market development and diversification. Market Penetration This strategy consists of developing companies products to an existing market. This strategy will help a company achieve objectives such as; maintaining or increasing the market share on current products, become a market leader, it can help remove competitors from a market and increase the amount existing customers use Product development The Product development strategy can be used to introduce a new product into existing markets for example developing needs and wants so it can appeal to the particular existing market. Market development This strategy is used to help a company trade an old product in a new market for example selling a product over seas, lowering prices which will attract new customers or distributing a product via a different channel. Diversification Diversification is a growth strategy where by a business markets new products in new market this strategy is very riskey due to the fact the business is moving into a market that it has little or no experience in For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. . (Chapman, A. (2/5/2010). business plans and marketing strategy) Compared to the Porters five force model the Ansoff matrix can be a useful extension to encompass the degree of risk a company will experience by venturing into a new/expanding market (Bennett, R. Vignali, C. (1996). Dancall Telecom A/S in the UK mobile telephone market) it also deals with the possibility that an industry could be attractive because certain companies are in it, such as the Smartphone industry looks like a positive industry to be in but this is only due to Apple being so dominant. The Ansoff Growth matrix is used as a tool that helps businesses decide their product and market growth strategy where as Porters Five Forces is designed as a tool to help managers view a industries opportunities and threats allowing for a completive advantage to be formed. Conclusion In conclusion Porters Five Forces Analysis is a significant model for reviewing the possible for profitability in an industry. It works by looking at the strength of five important forces that affect competition, Supplier Power which is the power of suppliers to drive up the prices of inputs, Buyer Power which is the power customers to drive down prices, Competitive Rivalry which is able to evaluate the strengths of business in a industry, The Threat of Substitution helps reference the amount of different products and services that can be used in place of your own and finally The Threat of New Entry which refers to the ease with which new competitors can enter the market. If a company applies this model it will assist the business in viewing and identifying the strengths and directions in which they need to head to sustain profit in there given industry Literature and References: Porter, M (10/1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors . NY, USA: Free Press. 34-56. Aaker, D (2008). Strategic Market Management. 9th ed. New Caledonia: Jonh Wiley Sons, Inc. 67-68 Sarah-Jane Tasker. (2010). Giant iron ore producers are dictating price, says Beijing. Available: http://www.theaustralian.com.au/business/giant-iron-ore-producers-are-dictating-price-says-beijing/story-e6frg8zx-1225854289070. Last accessed 23/04/2010. Niederhut-Bollmann, C, Theuvsen, L,. (2008). Strategic management in turbulent markets. The case of the German and Croatian brewing industries. 1 (2), 64. Porter, Michael E.. (Jan2008). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY.. Harvard Business Review. Vol. 86 (16), 78-93. J Cramer. (2010). Barriers To Entry. Available: http://www.investopedia.com/terms/b/barrierstoentry.asp. Last accessed 1/05/2010. Recklies, D. (2008). Beyond Porter A Critique of the Critique of Porter. Available: http://www.themanager.org/strategy/BeyondPorter.htm. Last accessed 01/05/2010. Recklies, D. Recklies, O. (2000). Who We Are. Available: http://www.themanager.org/rmpenglish/self.htm. Last accessed 2/05/2010. Bennett, J. (2010). Porters Five Forces Model And Internet Competition . Available: http://ezinearticles.com/?Porters-Five-Forces-Model-And-Internet-Competitionid=446461. Last accessed 2/05/2010. Chapman, A. (2008). business plans and marketing strategy. Available: http://www.businessballs.com/freebusinessplansandmarketingtemplates.htm#ansoff%20product%20market%20matrix. Last accessed 2/05/2010. Bennett, R. Vignali, C. (1996). Dancall Telecom A/S in the UK mobile telephone market.(European Marketing Management Issues: A Case Study Selection).. Management Decision . 24 (8), 6-11. Wierenga B., Knowledge Based Systems in Marketing, Purpose, Performance, Perceptions and Perspectives,Management Report Series, no. 112, Erasmus University Rotterdam, Dept. of Business Management,1992. Iupindia, D. (2010). Journal of Applied Economics. IUP. 9 (2), 1-24. Porter, Michael E. (1980). How competitive forces shape strategy.. Harvard Business Journal. 2 (17), 34-50. Coyne, K.P. and Sujit Balakrishnan (1996),Bringing discipline to strategy, The McKinsey Quarterly, No.4. Porter, M.E. (1980) Competitive Strategy, Free Press, New York, 1980. SEC Form 20-F, BHP Billiton Limited and BHP Billiton plc, for FY 2007 (PDF). BHP Billiton. 2007-09-26. p.  274. http://www.bhpbilliton.com/bbContentRepository/20fstatement2007.pdf. Retrieved 2008-04-09. BHP wont be drawn on a Rio sweetener. FT.com (Financial Times). 2007-11-28. http://www.ft.com/cms/s/0/fe0b3904-9d88-11dc-9f68-0000779fd2ac.html. Retrieved 2007-11-28. Pump Industry Analyst. (2010). BHP Billiton plans iron ore mining expansion in Western Australia.. Iron Ore Mining. 1 (2), 3-4. Richardson, M. Evans, C. (2007). Strategy in Action Applying Ansoffs Matrix.. British Journal of Administrative Management; . 59 (3), 1-3.

The Key Isues in the 1800 Presidential Election

1. What were the key issues in the 1800 presidential election? Why is it called the â€Å"Revolution of 1800? † Thomas Jefferson won the election of 1800 by a majority of 73 electoral votes to 65, and even though Adams got more popular votes, Jefferson got New York. But, even though Jefferson triumphed, in a technicality he and Aaron Burr tied for presidency. The vote, according to the Constitution, would now go to the Federalist-dominated House of Representatives.Hateful of Jefferson, many wanted to vote for Burr, and the vote was deadlocked for months until Alexander Hamilton and John Adams persuaded a few House members to change their votes, knowing that if the House voted for Burr, the public outcry would doom the Federalist Party. Finally, a few changed their minds, and Jefferson was elected to the presidency. The â€Å"Revolution of 1800† was that there was a peaceful transfer of power; Federalists stepped down from office after Jefferson won and did so peacefully , though not necessarily happily and the Republicans were more of the â€Å"people’s party† compared to the Federalists. . Discuss the factors that led to the Louisiana Purchase. In 1800, Napoleon secretly induced the king of Spain to cede the Louisiana territory to France. Then, in 1802, the Spaniards at New Orleans withdrew the right of deposit guaranteed by the Pinckney Treaty of 1795. Such deposit privileges were vital to the frontier farmers who floated their goods down the Mississippi River to its mouth to await oceangoing vessels. These farmers talked of marching to New Orleans to violently get back what they deserved, an action that would have plunged the U. S. into war with Spain and France.In 1803, Jefferson sent James Monroe to join regular minister Robert R. Livingston to buy New Orleans and as much land to the east of the river for a total of $10 million, tops. Instead, Napoleon offered to sell New Orleans and the land west of it, Louisiana, for a bargain of $15 million, thereby abandoning his dream of a French North American empire. The decision to sell Louisiana was also because Napoleon needed cash to renew his war with Britain. The Louisiana Purchase was finalized on April 30, 1803. The Senate quickly approved the purchase with Jefferson’s urging, and the Louisiana Purchase doubled the size of the United States.This was the biggest bargain in history averaging 3 cents per acre. 6. Analyze the cause of the War of 1812. America’s reasons for entering the War of 1812 were, â€Å"Freedom of the seas†, the U. S. wanted the right to sail and trade without fear. Possibility of land, the U. S. might gain Canada or Florida. Indian issues, Americans were still upset about British guns being giving to Indians. 7. Discuss the importance of Marbury v. Madison. The Judiciary Act, passed by the Federalists in their last days of Congressional domination in 1801, packed newly created judgeships with Federalist-backing men, so as to prolong their legacy.Chief Justice John Marshall, a cousin of Jefferson, had served at Valley Forge during the war, and he had been impressed with the drawbacks of no central authority, and thus, he became a lifelong Federalist, committed to strengthening the power of the federal government. William Marbury had been one of the â€Å"midnight judges† appointed by John Adams in his last hours as president. He had been named justice of peace for D. C. , but when Secretary of State James Madison decided to shelve the position, Marbury sued for its delivery.Marshall dismissed the case, but he said that the Judiciary Act of 1789 was unconstitutional, thus suggesting that the Supreme Court could determine the constitutionality of laws, judicial review. 8. Based upon the War of 1812, assess the effectiveness of the American military system. Due to widespread disunity, the War of 1812 ranks as one of America’s worst fought wars. There was not a burning national anger, li ke there was after the Chesapeake outrage; the regular army was very bad and scattered and had old, senile generals, and the offensive strategy against Canada was especially poorly conceived.

Possessive or Genitive Case Definition and Examples

Also Known As: possessive determiner, genitive case, second case In English grammar, possessive case is the case (or function) of an inflected form of a noun (Santas, the bosss) showing ownership, measurement, or source. In addition to the -s ending (a clitic), the possessive can be expressed with of, particularly when the possessor is not alive (the top floor of the building, the base of the statue). Possessive case also refers to a type of pronoun (mine, yours, his, hers, its, ours, theirs) or determiner (my, your, his, her, its, our, their) that indicates ownership, measurement, or source. (Note that his and its function as both pronouns and determiners.) Examples and Observations I will not hide the teachers Prozac.(Bart Simpson, The Simpsons)People who have given us their complete confidence believe that they have a right to ours. The inference is false: a gift confers no rights.(Friedrich Nietzsche)Parents can only give good advice or put them on the right paths, but the final forming of a persons character lies in their own hands.(Anne Frank)The winners edge is all in the attitude, not aptitude.(Denis Waitley)An Englishmans way of speaking absolutely classifies him.(Alan Jay Lerner)What precedes the possessive ending need not be a single-word compound but can be a phrase, as in my neighbor next doors dog, or even a clause, as in a woman I knows niece. (Laurel J. Brinton, The Structure of Modern English: A Linguistic Introduction. John Benjamins, 2000) Possessives Before Gerunds In your writing, when a pronoun appears before a gerund (an -ing verbal used as a noun), use the possessive case. We have tasted their cooking. In this example, cooking is used as a noun and is the direct object of have tasted. If a pronoun appears before a participle, use the objective case. We have watched them cooking. In this second example, cooking is used as a participle to describe them. (Robert DiYanni and Pat C. Hoy, The Scribner Handbook for Writers, 3rd ed. Allyn and Bacon, 2001) The Decline of the Possessive Apostrophe The apostrophe is the stepchild of English orthography. It is neither fish nor fowl, typographers convenience, nor true punctuation...The possessive apostrophe is a grammatical anomaly, a vestigial case marker—appropriately shaped like the human appendix—in a noun system that has otherwise dispensed with cases... Evidence of its demise is apparent in newspapers, on billboards, on menus. Our students, understandably confused, alternately abuse it and feel abused by it... ...Thus we may contemplate with relative equanimity the eventual loss—for such seems inevitable in time—of the possessive apostrophe. We may mourn its passing and, perhaps, armed with grammar texts and rules (poor weapons at best) prolong its stay for awhile. But we cannot, nor should we wish to, preserve it indefinitely. We would do well to recognize that the outrages perpetrated upon the apostrophe by our students reflect an increasingly common practice outside the classroom, and temper the insistence of our lessons... ...And, when all is said and done, the loss will not be a great one.(Elizabeth S. Sklar, The Possessive Apostrophe: The Development and Decline of a Crooked Mark. College English, October 1976) Possessive and Genitive The genitive has also been called the possessive, since one of its meanings has been to denote the possessor of what is referred to by the second noun phrase, as in The couples home. But possession has to be interpreted liberally if it is to cover many instances of the genitive and the of-phrase. In a liberal interpretation, we could count as possession any connections between the two nouns where the verbs possess or have can be used in a paraphrase; for example, family relationships: Toms son (the son that Tom has). Mexico Citys(Sidney Greenbaum, The Oxford English Grammar. Oxford Univ. Press, 1996) False Possessives The apostrophe generally should not be used after a word that is more descriptive than possessive, except for a plural not ending in s: Explorers Hall, Diners Club, the Department of Veterans Affairs, teachers college but teachers guide, St. Elizabeths Hospital, Teamsters Union, visitors center, childrens hospital. But the Ladies Home Journal, the National Governors Association.(The National Geographic Style Manual. National Geographic Society, 2012) The Lighter Side of Possessives Cartman: Give me back my kidney! Stan: Dude, please, Kyle needs it! Cartman: Its mine! Not yours, mine! Give it back right now or theres going to be Hell to pay!(Cherokee Hair Tampons. South Park, 2000) Danny Butterman: All right, Pete?Nicholas Angel: Do you know this man?Danny Butterman: Yeah. Hes Auntie Jackies sisters brothers boy.(Nick Frost and Simon Pegg, Hot Fuzz, 2007) My best friends sisters boyfriends brothers girlfriend heard from this guy who knows this kid whos going with the girl who saw Ferris pass out at 31 Flavors last night. I guess its pretty serious.(Kristy Swanson as Simone, Ferris Buellers Day Off, 1986)

Battle of Ezra Church in the Civil War