Porter s Five Forces Model - 1539 Words

Porter s Five Forces Model Introduction The cosmetic industry is influenced by a wide range of factors that affect market growth and profits for businesses. The cosmetic industry has continued to record a substantial strong growth over the years and developed as one of the industries holding the highest potential for further development and growth. The market characteristics can reduce or increase the chances of success for new market entrants (Porter, 2008). Using Porter’s five forces model, businesses can be able to analyze the market and determine its attractiveness for investments. A major concern in health care is the quality. The purpose of this paper is to analyze the market attractiveness for a new cosmetic surgery clinic in†¦show more content†¦The industry has also recorded growth in the development of new customer segments. For instance, the desire to look young has increased the demand for male cosmetic surgery by 327% between 1997 and 2015 (Business Wire, 2016). The use of cosmetic surgery is a lso expected to increase going by the popular trends in media. The high demand for cosmetic surgery services is also demonstrated by the development of cosmetic surgery tourism. As the demand for cosmetic surgery remains high, the existing market players are unlikely to engage in aggressive market tactics such as price wars. New Market Entrants There are various market barriers that are likely to affect the potential of growth for new market entrants. New market entrants are likely to experience challenges with product or service differentiation. Product differentiation is achieved through brand recognition and is crucial in creating customer loyalty. Brand recognition is an important barrier for new entrants because of high emphasis on quality in the cosmetic industry (Gaynor, 2007). Quality of services and products is a major component of competition in the industry. New market entrants may be forced to spend a lot of resources in brand differentiation activities so that to gain customer loyalty. It might take time before the new business is able to overcome the customer loyalty towards the existing competitors. The new business willShow MoreRelatedThe Porter s Five Forces Model1281 Words   |  6 PagesAbstract The Porter s Five Forces model, which was named after Michael E. Porter, identifies and analyzes five competitive forces that shape every industry, and helps determine an industry s weaknesses and strengths. These forces are: †¢ Competition in the industry; †¢ Potential of new entrants into the industry; †¢ Power of suppliers; †¢ Power of customers; †¢ Threat of substitute products. It is commonly used to identify an industry s structure to determine corporate strategy. Porter s model can beRead MorePorter s Five Forces Model Essay1602 Words   |  7 PagesPorter s Five Forces model (PFF) is a powerful instrument that can be utilized by companies to investigate its situation and identify its industry s competitors. Analyzing industry will help any business in determining the competitive strength and weaknesses. By using PFF model, investors can gain valuable information regarding what the actual factors that affect the organization s profitability (Evans Neu 2008). This paper will analyze the Cola Wars case study based on the PFF model, and theRead MorePorter s Five Forces Model1611 Words   |  7 PagesPorter’s Five Forces In order to further figure out the failure of GM in Korea, we decided to analyse it from industrial perspective. The five forces model, which was developed by the Harvard professor Michael Porter, is going to be applied to the case. 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Essentially the five forces model provides corporations with a means of analyzing their fellow competitors within the market (PorterRead MoreAnalysis Of Porter s Five Forces Model1757 Words   |  8 Pagesand profits. Why is this so? FIVE FORCES MODEL Until recently, Porter’s Five Forces Model was the dominant theory applied to factors driving competitive forces in an industry. It hypothesizes that the level of competitive intensity within an industry arises from five specific sources in determining attractiveness of an industry to potential entrants. Porter developed Five Forces Analysis in response to SWOT analysis, a model he found too vague. In this economic model, while rivalry between competingRead MoreCase Study : Porter s Five Forces Model1153 Words   |  5 PagesORGANIZATION-EBAY Abstract Porter sFiveForce Porter s Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes. How the five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces Threat of Entry This business is an Internet-driven administration industryRead MoreHow to use porter s five forces model2243 Words   |  9 Pages7/22/2015 How to use porter s five forces model ïÆ'‰ (http://www.smartinsights.com)  Sign in (/wp-login.php) Become a member (/membership/) Resources (/digital-marketing-advice/) Blog (/blog/) About (/about/) Contact us (/contact-us/) How to use Porter’s five Forces NOVEMBER 18, 2013 MARKETING MODELS (HTTP://WWW.SMARTINSIGHTS.COM/MARKETING-PLANNING/MARKETING-MODELS/) (http://www.smartinsights.com/marketing-planning/marketing-models/porters-five-forces/?share=twitternb=1) (http://www.smartinsightsRead MoreCase Study : Porter s Five Forces Model1132 Words   |  5 Pages Organization-Ebay Institution: Name: â€Æ' Abstract Porter sFiveForce Porter s Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, threat of rivalry, threat of suppliers, threat of purchasers and threat of substitutes. How the five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces Risk of Entry This business is an Internet driven organization