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Porter's 5 Forces Model & Value Chain Analysis

Yusmazy Md YusupGP02663

CONTENT

Introduction

Porter's 5 Forces Model

Porter's Value Chain Analysis

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Introduction

Analyse competition

Planning Techniques

Porter’s 5 Forces Model Source: Micheal E.Porter, Competitive Strategy (New York: The Tree Press, 1980)

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Porter’s 5 Forces Model

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2. Bargaining Power of Suppliers

• Suppliers of raw materials, components, labour and services to the firms can be a source of power over the firm when there are only a few substitutes

• Bank Islam (M) Bhd. maintained their operations using IT solutions provided by Silverlake Group

• Over the years Bank Islam has developed dependencies to Silverlake Group and this gave power to the group as a main supplier to Bank Islam

Porter’s 5 Forces Model

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4. Threat of Substitute Products or Services

• The existence of alternative products or services post threats to firms because the consumers easily could shy away from one product given that the other product offers better quality, better after sales services or simply lower in prices

• For perceived superior quality and good marketing strategy and brand positioning, consumer might choose the brand Evian. However taking price into accounts consumers may simply switch to other brand such as Spritzer or Dasani to name a few

Porter’s 5 Forces Model

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Porter’s Value Chain Analysis Source: Micheal E.Porter, Competitive Strategy (New York: The Tree Press, 1980

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Porter’s Value Chain Analysis – Primary Activities

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Porter’s Value Chain Analysis – Primary Activities

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Porter’s Value Chain Analysis – Support Activities

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Porter’s Value Chain Analysis – Support Activities

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ReferencePorter, M. 1985. Competitive Advantage: Creating and Sustaining Superior Performance. The Free Press, New York.

Wikipedia, The Free Encyclopedia. 2014. http://en.wikipedia.org/ wiki/Porter_five_forces_analysis . [7 Oktober 2014].

IFM Management Technology Policy. Decision Support Tools. http://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/. [6 Oktober 2014].

Strategy-Key.com. http://www.strategy-keys.com/ michael-porter-five-forces-model.html. [7 Oktober

2014].

Thank You