1.2.8 Porter's Five Forces Model

Natasha Martinez is a woman, student, friend, and Topeka Youth Peace Builder Award recipient. Her determination and love for democracy have given her the opportunity to share with hundreds of people how to get involved and register and encourage others to engage in their civic duty. “Voting is important because it gives citizens a right to have a voice,” said Natasha Martinez.

Porter’s model aims to enable managers not only to understand their industry environment but also to shape their firm’s strategy. The five competitive forces are threat of entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing competitors. “As a rule of thumb, the stronger the five forces, the lower the industry’s profit potential- making the industry less attractive to competitors. The weaker the five forces, the greater the industry’s profit potential – making the industry more attractive” (Rothaermel, 2013, p. 65). It is recommended that managers position their company in an industry in such a way that relaxes the constraints of strong forces and

This analysis is conducted on the Porters Five Forces theory that is crucial for effective strategic decision-making, the five forces that shape industry competition are:

Fresh Direct got their start in New York City in July 2001, when co-founders Joseph Fedele and Jason Ackerman started the company. Since the start of the company in 2001, they have been through many changes in the leadership of the business, eight changes to the CEO over the last thirteen years. The most current CEO that is leading the business through the industry is Richard Braddock, he took the position in 2008, he took the position after serving as CEO for priceline.com because, he saw the potential for increasing growth within the company (Strategic Manangement). After searching many sites such as yahoo and google finance, as well as etrade etc., I was unable to find any actual profit or losses data for the last year due to the fact

The townspeople think that wearing that scarlet letter wasn't a harsh enough punishment. They were quick to judge and began shaming her. "... she had..to encounter the stings and venomous stabs of the public contumely... in every variety of insults..."(Scarlet Letter, 63). Some women in the crowd began to discuss Hester Prynee's punishment and began calling her names like a "malefactress", a female criminal. Even the "gossips" condemn her and felt strongly that wearing the letter "A" upon her chest wasn't harsh enough. One of the gossips said her punishment "At the very least, they should have put the brand of a hot iron on Hester Prynne's forehead." (Scarlet Letter, 55). Other women said that she could hide the mark but the sin will always

Porter’s Five Forces was developed in 1979 by Michael Porter as a framework to assess and evaluate the competitive position of a company in an industry. It is based on the theory that there are five forces which identify the attractiveness and competitive strength of an industry. It is helpful to gain an understanding of a firm’s current positon and the position that the firm may look to capture in the future. Porter’s five forces are also used to

40) Elements of RICO were written in broad terms. To state a claim, a plaintiff must allege four elements: (1) conduct (2) of an enterprise (3) through a pattern (4) of racketeering activity.[5] Each element of a RICO claim requires additional analysis: an “enterprise” is marked by association and control; a “pattern” requires a showing of “continuity”—continuous and related behavior that amounts to, or poses a threat of, continued criminal violations; and “racketeering activity” involves the violation of designated federal laws.[6]

Porter's Five Forces can be applied to particular companies, market segments and industries with the step-by-step analysis of market structure and competitive situation. First of all, when implementing this module in organizations, it is necessary to determine the scope of the market to be analyzed. Following, all relevant forces for this market analyzed and key forces are identified (Gerry and Kevan, P.117). Actually some organizational strategy and the longer-term goals are mainly based on or consistent with the key forces. Hence, it is not necessary to analyze all elements of all competitive forces with the same depth. Moreover, the key forces in the competitive environment will vary in different industry. Different forces take on prominence in shaping competition in each industry (Porter,

I am a registered nurse employed in a hospital in the healthcare industry. Porter’s five forces model begins with the first force being the intensity of rivalry among incumbent firms (Parnell, 2014). Competition in healthcare, particularly hospitals, is limited. Due to the accredidation process, government regulations such as a certificate of need (Certificate of need, n.d.) and licensing of facilities and providers, competition is limited. The Federal Trade Commission (FTC) is looking at ways to increase competition in healthcare such as opening up opportunities for nurse practitioners, increasing the availability of such technologies as telehealth and establish more competitive healthcare pricing. In cities, there is more of a concentration of competitors. The hospital that I work at is the largest between Memphis and Nashville and has the busiest ER in the state of Tennessee. Therefore, the concentration of competition is low for that particular hospital. There are high fixed costs with a hospital such as buildings, overhead, equipment, and salaried personnel. Yet, a hospital does not cut their prices to increase patient census. However, it could be questionable in a low census period as to whether there are additional tests run or hospital admissions that would ordinarily not happen if the census were higher. There is strong growth in the healthcare industry with the industry growing at twice the rate of the national economy (Health Care Industry, 2012).

In order to direct one’s thinking they need negative emotions. The article “Happiness: Enough Already” declares that, “Studies show that when you are in a negative mood,” says Diener, “you become more analytical, more critical and more innovative” (Begley 456). Which proves that the happier one is the more absent minded they are; whereas when one is negative one is more likely to think before doing. According to “Don’t Worry, Be Gloomy” it states, “When we’re overly cheerful, we tend to neglect important threats and dangers” (David 124). There is something called being “too happy” meaning one experiences extreme levels of happiness and when one has these extreme levels that person tends to take riskier actions that would harm themselves or others. As the article continues it states, “Our so-called negative emotions encourage slower, more systematic cognitive processing” (David 124). Meaning that one would acknowledge and recall the more important details instead of following the interpretations and judgments of a situation from others. Therefore, the negative emotions actually help people get through their situations or life in general.

Michael E. Porter, associate professor published the article titled “How Competitive Forces shape Strategy” in Harvard Business Review in 1979. This article is retitled as “The Five Competitive Forces That Shape Strategy” and published in Harvard Business Review in 2008. Michael E. Porter developed the model of Five Competitive Forces which is defined as “Competitive Strategy – Techniques for Analyzing Industries and Competitors”. It has become a main device for analyzing an organizations structure in strategic practices.

As we begin to strategically plan for our business, it is important for us to take a deep dive into our competitive environment to understand where we are strong competitively and where we are weak competitively. An analysis of the forces driving industry competition using M.E. Porter’s Five Forces Model will assist us in determining where the power lies in a business situation as we begin to plan. We must understand how they work in our industry and how they affect our particular situation. Whatever the collective strength of these forces is, our job as the strategists of the organization is to

The five forces examines the dynamics within an industry. Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition and profitability over time. Understanding the structure of its industry is also essential to effective strategic positioning.

Porter’s five forces model is a tool that simple but powerful that help business people understand the relative attractiveness of an industry and the industry’s competitive pressures. Porter alluded to these forces as the micro environment, to balance it with the more broad term macro environment. They comprise of those strengths near an organization that influence its capacity to serve its clients and make a benefit. An adjustment in any of the forces ordinarily require a business unit to re-evaluate the market place given the general change in industry information. The general business engaging quality does not mean that each firm in the business will give back the same benefit. Buyer powers, supplier power, threat of substitute product and

Porter’s five forces analysis not only provides the ideas to create the strategic plan but also assesses the attractiveness of an industry.