Porter’s Five Forces Assignment Help | Online Assignment Help Australia
Team of freeassignmenthelp.com provides the Porter’s Five Forces Assignment Help for the MBA or business students who need assignment help Australia. Porter’s five forces model is effective tool to analyze the industry. In this post Porter’s Five Forces explained with an example. For this we take the Industry is Truck Manufacturing in the U.S. and analyzes it.
Truck manufacturing industry
The large truck manufacturing industry in the United States is highly competitive and hard to enter. Truck is most convenient transportation tools in modern society. The demand of heavy truck is increased through growth in the agriculture, manufacturing, construction, and retail sectors . The profitability of individual companies depends on volume and sales of high-margin options. Large companies enjoy economies of scale, where small companies compete by offering highly customized products. This industry is capital-intensive.
Porter’s five forces model
To analyze the industry, porter’s five forces model is effective tool. It helps to identify competitive opportunities and attractiveness within an industry or market. Along with this, it is an analysis tool to identify opportunities and risks before entering an industry (Hill & Jones, 2009). The management can take better decision by using the information of industry analysis through Porter’s Five Forces.
Threat of substitutes: The threat of substitutes in truck manufacturing industry in US is low. But the threat of being substituted by another brand is high due to availability of various brands in trucks in American market. There are various alternatives to transporting products by trucks in the United States such as trains, ships and airlines, but the US is loyal to transport products by trucks. This industry has a stable foreseeable future with a minimal threat of substitution.
Threat of new entry: In the truck manufacturing industry in US, it is hard to enter in this industry. The major barrier to entry in the United States is the good reputation of existing brands in the United States. American drivers are loyal to a few well-established domestic brands that are older and have good brand recognition in this market. So, it is difficult for new firms to enter in this market.
Customers have strong brand loyalty towards existing brands that is difficult to overcome by new competitors through advertising and service programs. Along with this, start up cost is high for this business that creates problems for new entrants in this industry. On the other hand, if start-up costs are low for new businesses entering in the industry and less commitment are needed in advertising, research and development and capital assets, then there are greater chances for new entrants in the industry. In US, truck manufacturing industry has low threat of new entry due to high start up cost and strong customer loyalty. We offer all subjects my assignment help.
Potential profit of this model
According to our online assignment help Australia, through this model, we can analyze the truck manufacturing industry in the US. With the help of this valuable information, companies can take further decisions of entrance and extend the market. The strength of the five forces determines the profit potential in an industry by influencing the prices, costs, and required investments of businesses. The forces that affect profitability are beyond the control of organization, so they can develop strategies and tactics to respond the forces rather than try to change the business environment.
This model provides insight information that helps to make strategies for facing competition in the industry. It is a simple and powerful tool that helps to understand the business situation. Along with this, it provides understanding about current competitive position and industry analysis through different forces such as bargaining power of suppliers, bargaining power of customers, threat of new entrance, threat of substitutes and threat of competition. With the help of this analysis, organizations can take decisions and develop further strategies to compete with competitors.
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