(a) Background information on the companies. (Describe your companies’ profile and core business activities.) In this assignment, the 2 companies selected in a same industry are Hup Seng Industries BHD. and Apollo Food Holdings BHD. Both corporations are classified in the Consumer Products sector on Bursa Malaysia. Hup Seng Industries BHD. (HSIB) is a Malaysia-based investment holding corporation established in 1958 along with its subsidiaries involved in manufacturing and trading of biscuits and confectionery food items. The company’s headquarters is registered in Batu Pahat, Johor and is listed on Bursa Malaysia. Its market spans across Asia, Africa, Oceania, Europe and North America. It divided its business in the biscuit manufacturing …show more content…
Porter. This analysis is used to measure the level of competition of the company in same industry. Abundant of economic studies stated that different industries can survive at different profitability level, the difference is explained by industry structure ("Porter 's Five Forces," n.d.). In other words, this model identifies industry structure based on the varied profit margins between industries, to help the company determines corporate strategy ("Industry Analysis | Porter’s Five Forces | Competition," 2014). The objective in this analysis is to help managers determine profitability and attractiveness of an industry (Investopedia, n.d.). The increasing level of competition decrease the profitability. Moreover, this tool provides a foundation to formulate strategy and recognize the competitive landscape in the same industry of the company ("Industry Analysis | Porter’s Five Forces | Competition," …show more content…
Hup Seng Industries BHD. implements centralization as the planning decision making power lies with top management. The Board of directors take the responsibility to plan the business. Y. Bhg. Dato’ Keh (Kerk) Chu Koh, Chairman of the Company, develop business strategic and plan the production development. Kerk Chiew Siong, Non-Executive Vice Chairman of the company, plans strategies for market development of Group’s products. Kuo Choo Song was appointed as Managing Director of the company responsible to plan the Group’s business development programs and represent the group at numerous outsider functions. Teo Lee Teck, Non-Independent Non-Executive Director of the Company, supervise the product manufacturing, quality, and hygienic assurance of the company. Kerk Kar Han, Non-Independent Non-Executive Director of the Company, is responsible for maintaining and improving the organizational administration system, and company performances (Hup Seng Industries BHD.
In 2014 Kellogg’s and Jif combined their products to create a peanut butter flavored breakfast cereal, Jif Peanut Butter Cereal. Kellogg’s, who’s mission statement is Nourishing families through breakfast, so everyone can flourish and thrive each and everyday combined with Jif peanut butter brand ideal of giving picky moms what best, made the cereal have high appeal rating upon release. Kellogg’s has manufactures in 18 different countries and is marketed in over 180 countries. Kellogg’s used segmentation and targeting. Segmentation is dividing the market of potential buyers into specific groups, and then determines the attractiveness of each product and segment.
Lim is very famous for his leadership role at CapitaLand Mall Asia which is one of the largest shopping mall developers, owners and managers in Asia. He has approximate 10 years of experience in retail market. He is also an asset or fund manager. He has approximate 15 year of experience in the field of assets management. Mr Lim Beng Chee currently serving as chief executive officer (CEO) of Capita Malls Asia, now famous as CapitaLand Mall Asia, has been earmarked as the new CEO of Shangri-La Asia.
Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.
Each of the forces is determined how competitive in that industry as well as the structure of the industry. Porter’s five forces factors are consists of competitive rivalry, the threat of new entrants, the threat of substitutes, bargaining power from
Key lessons that Other Organisations Can Learn from Dawn Meats in International Marketing: There are a number of lesson that other companies can learn from Dawn Meats’ international marketing experiences. I believe that Dawn Meat’s has been hugely successful in both the US and French markets, but this did not come without its challenges. There are a number of different tools available that companies can use to analyse the international environment (Lavin, 2015): o PESTLE/PEST analysis – Political, Environmental, Social, Technological, Economic & Legal o SWOT Analysis – Strengths, Weakness, Opportunities & Threats o Porter’s Five Forces Analysis o Hofstede’s Cultural Dimensions In the US, the main challenge for Dawn Meats was proving to the US market that lifting the ban on Irish beef was the right choice, and establishing the reliability and quality of their products. In France, Dawn Meats has lots of competition from
The Porter’s model was created by Michael Porter in 1979. It is used to understand the structure of the industry and level of competition in that industry. It specifies the effect of five forces on an organization which are Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of substitutes and Rivalry among existing competitors. The organization is less profitable if competitive forces are high. The model specifies where the actual power lies (Jurevicius, 2013).
This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
Apple Inc., an American multinational corporation was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 197. The headquarters of Apple is located in Cupertino, California and it designs, manufactures and sells consumer electronics, computer software as well as personal computers. (Reference for Businesses) The company's wide range of products and services include the iPhone, iPad, Mac, iPod, Apple TV, a variety of consumer and professional software applications, both the iOS and OS X operating systems, iCloud and several other product accessories. Apple not only offers a variety of mobile communication, media devices and portable digital music players but they provide a variety of related software, services, networking solutions
3 Porter’s Five-Forces Model Analysis Different factors can be combined together in a simple business model. This is known as Porter’s Five-Forces Model and competitive circumstances of an industry can be analyze through this model. These five forces are critical forces that they determine the attractiveness and competitiveness of an enterprise and have influence on a firm’s profitability in its industry. The five-forces analysis can not only show how Walt Disney company builds a sustainable competitive advantage in Entertainment-Diversified industry but also can seize business opportunities in future development.
The model of the Five Competitive Forces, developed by Michael E. Porter, is based on corporate strategy, industry structure and the way they change. Porter has identified five competitive forces that shape every industry and every market and they determine the intensity of competition and hence the profitability and attractiveness of an industry. We further look into how the strategy and industry structure is placed in the field of healthcare and hospitals and analyze the attractiveness of the overall industry. 2.2 Rivalry among competitors Industry Rivalry is one of the 5 forces used to determine the intensity of competition in the industry. Competition in health care is the potential to provide with a mechanism to reduce cost and hence accessible
This model is considered as the most potent and useful tool and is widely used by organisations. This model deals with external factors that influence the nature of completion and internal factors how firms compete effectively to be more profitable. Porter’s 5 forces is used. Industry Rivalry : Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct competitors as numerous and/or equally balanced competitors may lead to intense competition. The rivalry for market share becomes intense when product differentiation and switching costs are
These factors are a big game changer towards the success and failure of a particular organization. These factors can be further evaluated using the widely used industry analysis approach, Porter’s Five Forces Model. In the Oil & Gas
Porter’s five forces model To analyse the microenvironment facing United Biscuits in China, Porter’s five forces model is selected to provide an understanding of the competitive forces, to determine the competitive position of the company and profitability within the biscuit industry whilst offering a framework for predicting and influencing competition over time (Porter, 2008, p.80). The findings are explained below: Threat of new entrants • The high capital cost required for investing in developing distribution, sales network and acquiring production equipment could deter new entrants. The barriers are high when capital is necessary for unrecoverable expenditures such as marketing and product development capability which is difficult for new entrants to succeed in the short-term (Euromonitor, 2014; Porter, 2008, p.81).
Secondly, Porter’s Five Forces Model is used to analyse the level of rivalry in the market, the attractiveness for potential new entrants, the power of suppliers, the power of buyers and the threat of substitution. This will allow us to see a holistic view of the industry in the market environment. Thirdly, the PESTLE framework is used to analyse the factors within the macro environment that are influencing