Porter's Five Force Analysis Examples
1.4 Goals
The main aim of our audit is to understand the firm Machinery Group AG, and analyse to which extent the firm applies managerial policies, requirements and procedures. Through our work, the firm will have a clear overview of its financial statements and consequently will be able to manage engagement risk, providing superior client service and achieve defined profitability targets. Our service will be a superior one, otherwise the firm will see us as a commodity. Thus, it will choose a lower price agency. Moreover, improving a program for managing risk, giving a clear and fair vision of the profitability of the company, will attract new investors and give hints about the strengths and the weaknesses of the company. (Whittington & Pany, 2011)
1.5 Items required from the client
There
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However, it is important not to forget the situation of the indebtness.
2.2 Porter’s five force analysis
Machinery Group AG is mainly a manufacturer of heavy equipment. Even though the core business is the machine tools one (with a revenues of 1.294.522 in 2015 and 1.102.907), it provides services and corporate services too. The market we are focusing on, to analyse the five force analysis, is the European and, in particular, the German one since it is the largest (in terms of revenues) compared to North America, Asia and others, where the segment is not particularly attractive. (Case Study)
Threat of substitutes
The low number of substitutes means that customers cannot easily switch to other products, in fact the industry is characterized by high switching costs.
Moreover, the current trend leads to mechanization and automatization. Thus, customers are unlikely to shift away from using heavy equipment. Consumers are insensitive to price increases and demand remains unchanged. (Peggy Görlitz, 2015)
New entrants’
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