Presented By: Vishal Budhraja Devendra Singh Anurag Yadav Avinash Vastani Vaibhav Purwar Porter's Five Forces Assessing the Balance of Power in a Business Situation
Presented By:Vishal Budhraja
Devendra Singh
Anurag Yadav
Avinash Vastani
Vaibhav Purwar
Porter's Five Forces
Assessing the Balance of Power in a Business Situation
History IntroductionObjectiveDetailed StudyConclusionBibliography
Content
Michael E. Porter
Born in 1947.Professors in Harvard
Business School. Introduced Porter's 5
Forces Model.Written 18 books &
over 125 Articles.
Author, Management Consultant
New Entrants
Buyer Power
Threat of SubstitutionSupplier Power
Rivalry among
Competitors
External InfluenceCompetitive Strategy Inside feel of Market Analyzing market Mix.
Objectives of Porter’s Model
New Entrants Threat of New Entrants
Government Policy
Economies of Scale
Product Differentiation
Capital Requirements
Access to Distribution Channels
Rivalry among
Competitors
Equally Balanced Competition Slow Growth IndustryHigh fixed CostHigh Storage CostSwitching CostProduct DifferentiationHigh exit Barriers
Equally Balanced Competition Slow Growth IndustryHigh fixed CostHigh Storage CostSwitching CostProduct DifferentiationHigh exit Barriers
53%
19%
17%
4% 6%
BisleriKinleyAquafinaHimalayaOthers
Market share of organised Sector in INDIAMarket share of organised Sector in INDIA
Threat of Substitute
Threat of Substitution
Keys to evaluate substitute products:
Example:Electronic security systems in place of security guards
Fax machines in place of overnight mail delivery
Switching costs
Buyer inclination to substitute
Bargaining Credit period Brand identity
Product differentiation
Threat of backward integration
Bargaining Credit period Brand identity
Product differentiation
Threat of backward integration
Power of Buyer
Buyer Power
Customers are concentrated, large or buy in volume .Buyer groups are likely to be powerful if:
Buyers face few switching costs
Buyer has full information
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
0
20
40
60
80
100
120
140
160
180
million Case
million Case
Exponential Increase in demand Bottled Water
Power of Supplier
Supplier Power
Suppliers are likely to be powerful if:
Supplier concentration Importance of volume to supplierDifferentiation of inputs Impact of inputs on cost or differentiationSwitching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry
Contrary
INDIA
0-14 years M 175228164
F 165190951
15-64 years M324699562
F 301821383
65 + years M 23925371
F 23138386
Age Distribution
Food Choice by Generation
18-34 56 %
35-53 47 %
54-65 37 %
65 + 19 %
FOOD WATER
Conclusion
WWW.Censusindia.gov.in
WWW.Bottledwater.in
WWW. Wikipedia .com
Competitive advantage by Michael Porter.
Bibliography
Any Question