Industry Analysis


Harvard's Michael Porter has identified the five forces that can be used to perform industry analysis to determine the industry's current and long-term profitability: industry competitors, potential entrants, substitutes, buyers, and suppliers. 

The threats posed by these forces are as follows:

  1. Threat of intense segment rivalry: A segment is unattractive if it already contains numerous, strong, or aggressive competitors. 
  2. Threat of new entrants: The most attractive segment is that in which entry barriers are high and exit barriers are low. 
  3. Threat of substitute products: A segment is unattractive when there is high ease of substitution or when substitute products already exist in abundance. This leads to intense price battles. 
  4. Threat of buyers' growing bargaining power: A segment is unattractive if buyers possess strong or growing bargaining power. 
  5. Threat of suppliers' growing bargaining power: A segment is unattractive if the company's suppliers are able to raise prices or reduce the quality of supplies.

Comments

Post a Comment

Popular posts from this blog

Value Creation

Image
Marketers of the 21st century understand that for a business to exist, there needs to be value creation and delivery to customers. This shift in marketing took place from the previous phase where companies would only create products and sell them to customers without understanding the customers' needs. Yes, this worked in the past when there were limited goods and services. But in a world full of different brands with unique products and features that satisfy various needs, customers tend to lean towards brands that meet their specific needs and wants. This makes marketing the beginning of any planning. To create value for customers, marketers follow these steps: 1. Choosing the value. This represents the assignment marketers engage in before creating the product, understanding the needs of their target market to create value for them. 2. Providing the value. Marketing must determine specific product features, prices, and distribution. 3. Communicating the value. This is done by...
Read more

Digital Marketing

Image
Digital Marketing is the process of marketing a product or service using digital technologies. The main aim of digital marketing is to reach a larger audience in a shorter amount of time and at a lower cost than traditional marketing methods. Some of the most popular digital marketing channels include: Search Engine Optimization(SEO): This is the process of optimizing a website for search engines, with the goal of improving the visibility of the site and driving more traffic to it. Advertising (Pay-Per-Click, PPC): PPC is a form of online advertising in which advertisers pay a fee every time their ad is clicked.  Social Media Marketing (SMM): SMM involves using social media platforms (such as Facebook, LinkedIn and Instagram) to promote a website or product. Email Marketing: Email marketing involves sending marketing messages (such as offers and newsletters) to a list of subscribers via email. Content Marketing: Content marketing is the process of creating and distributing high-qua...
Read more

Starbucks: Mastering the Brand Contact Process Through Internal Marketing

  Starbucks: Mastering the Brand Contact Process Through Internal Marketing When you think of Starbucks, what comes to mind? For many, it's the green mermaid logo, a cozy café environment, or the reliable taste of their favorite drinks. But behind this brand experience lies a structured brand contact process, supported by internal marketing and employee engagement to ensure that every customer interaction aligns with Starbucks’ values. This post explores how Starbucks effectively utilizes internal marketing throughout its brand contact process, the role of employee involvement, and areas where the brand could improve. Step 1: Identifying Key Brand Contacts Brand contacts are any direct or indirect interaction that customers have with a brand. For Starbucks, these include online interactions, in-store experiences, and even the way baristas greet customers. Starbucks has carefully identified touchpoints that are vital to building its brand. Through these, it emphasizes consistency in...
Read more