Michael Porter's Five Force Analysis: Anmol Broking

1.3.14 MICHAEL PORTER’S 5 FORCE ANALYSIS:

Anmol Share Broking Ltd applies the Michael Porter 5 force analysis:

1. Threat of Substitute Product or Services

The clients have the option to select the products and switch into different alternative products they are interested in for example the client can choose capital market, initial public offering, mutual funds, insurance etc.

2. Threat of increased competition from rivals

The firm has the threat of competition from the rival or competitors. As the threat that competition imposes then the firm must consider the variety of factors such as market position, advertising expertise etc. In this case, the largest player will occupy more market share.

3. Threat of New Entrants:

Barriers to entry

Investors should diversify their holdings in order to minimize their holdings in order to minimize their exposure to any one security, safe companies should not be entirely dependent on a single client or customer. Due to this the consumer or client can quote the prices and hence the revenue potential will increase in the company.

6. The bottom line

Porter 's analysis framework defines the important criteria to determine the stability of a corporation. Porter’s analysis says that the company dealing with the products or services such as insurance, mutual funds, capital market, etc will not be able to exercise pricing power to improve its margins; this may even lead the company to lose its market share. The qualitative measures introduced by Michael Porter in Porter 's five-force framework allow investors to draw conclusions about a corporation that are not immediately apparent on the balance sheet, but will have a material impact on future performance.

1.3.15 ORGANISATIONS

By having one on one: It is where they personally talk with the employee face to face and tell the guidelines of the company and they try to know the need of employees and need of management should be satisfied and balanced.

2. Talk to the management: Before training and implementing on the employees they talk to the management and take prior permission and approval for the training in a specific way. As management are also involved in and out of the training of employees.

3. Specific day for training and development: They have a specific day for training and development i.e. every 3rd Saturday every employee will be trained with whatever is the new implementation and also will be trained for their work. The employees are free to ask any queries or any grievances and it will be cleared out then and there.

4. T & D Calendar: This calendar says out the employee’s performance on a weekly, monthly, quarterly, half yearly, yearly. They always maintain the calendar to know the employee’s performance that is fluctuated during the period. If his performance is decreasing they take one on one and if there is a need of training on the basis of one on one then they do training and development