Examples Of Porter's Five Forces Model

PORTER’S FIVE FORCE MODEL
Porter’s five forces will interact to shape the competitive landscape facing port authorities and port service providers:

1. The rivalry among existing competitors.
2. The threat of new competitors.
3. The potential for global substitutes.
4. The bargaining power of port users.
5. The bargaining power of port service providers

These forces will impact ports of all sizes, which drive requirements for expansion of ports, service improvement, pricing decisions, and other management actions. 1. The rivalry among existing competitors.
The extent of rivalry and between ports is the first force shaping the competitive landscape. Some of the factors that determine the intensity of port rivalry.

a) Hinterland Market

Bargaining Power of Port User: The bargaining power and control over port management exercised by carriers, shippers, and tenants in varying degrees are also important forces shaping the competitive landscape of port reform. Bargaining power of port users is determined by various factors, which are outlined below.

a) Concentration of Port User Power: The larger percentage of traffic in the port controlled by a user, the more is bargaining power that user has in negotiations with port management and service providers. In certain situations, the port user can be so powerful that the port literally can’t afford to lose its business.
b) Impact of Changing Business Relationships: Business agreements and realignments among port users can result in powerful players which port managers and port service providers must contend with in contract negotiations. These can take the form of slot sharing arrangements, conferences, strategic alliances, mergers, and others.
c) Importance of Port to the Economy: The more important the port to the national economy, the more pressure there will be on port managers to retain customers which are valuable. Some ports can be valuable players in the national economy and the loss of important customers could have a big ripple effect on employment and local

In India evacuation through road takes place more than rails. One of the key reasons for

this is that most of the key rail routes are operating at or beyond 100% utilization level and the capital expenditure to decongest this is not happening at a faster clip. With sizeable primary hinterland cargo, most of the existing ports/terminals are not facing an impact currently though if the capacity does not come up within the next 4-5 years, the sector would face severe growth issues. Equipment ratios between berths and yards should be enhanced to an optimum level.

SHORTAGE OF SKILLED MANPOWER
As ships expand in size, there is a requirement of efficient equipment to load and unload cargo. Skilled manpower is very much needed in operating these sophisticated equipments. Now shortage of manpower leads to decrease in efficiency and optimal results are not achieved. Even though there have been several moves to setup institutes to train the manpower, the requirement has become significant with the privatisation picking up.

GDP/TRADE