Porter's Five Forces Model Analysis

Porter’s Five Forces Model Analysis Name: Tutor: Course: Institution: Date: 1. Explain Porter’s Five Forces Model and how Bill can use it to analyze his current business and his expansion. Be sure to address each of the 5 forces and explain to Bill what they mean for his business. Porter’s Five Forces model analysis is an agenda, which acts as a context for industry analysis and business strategy development. This model determines the five forces that attribute the viable intensity and thus attractive of the market attractive is the general industry profitability. In analyzing his new business with the aim of expanding it, Billy ought to consider all the five models of Potter. They include: a) Threat of new competition Bill needs to be cautious of the threat of other competitive market players. These players make the consumers of the products acquire a choice between the existing products in the market. In this case, Sassy shoes’ previous competitors will remain Bill’s responsibility b) Threat of substitute products or services Existence of merchandises outside of the dominion of the mutual merchandise limits rises the tendency of clients to shift to substitutes. This should not be mistaken with opponents' related products but completely dissimilar ones. For instance, tap water might be considered an auxiliary for juice, while Pepsi is an opponent's related merchandise. c) Bargaining power of customers (buyers) Bill has to consider the needs and wants of consumers in any decision he makes for the new shoe store. Moreover, there is need to maintain a good customer-seller relationship. d ) Bargaining power of suppliers . Another aspect that Bill needs to consider is the Bargaining power of the suppliers. This is because suppliers can become a source of power over the firm, where there exist few substitutes in the market. To reduce this, Bill ought to ensure that Sassy Shore store gets several options from which to acquire shoes...