ipl-logo

Five Forces Analysis: Porter 5 Forces In The Car Wash Industry

721 Words3 Pages

Porter 5 forces Analysis B&M group will enter the car service industry specifically car washing and will provide carwash services with wax. In the car wash industry B&M of course would have main competitors around our target market; Teamworx carwash and Mags & Wash. In order to compete with them we offer services that are competitive to the market. Threat of new entrants The threat of new entrants is high because there are a lot of opportunities in the village where we want to put up a carwash business also, the car users population in the village is big. It will be easy to put up a new carwash business there in the village if they have enough capital and a place to run the business. The cost is not that high in putting up a carwash business. …show more content…

Maynilad water supply, Chamois, sponge, and wax are necessary for our business in order to keep operating the car wash place and render full cleaning service. Maynilad hold the power in controlling prices. The suppliers have the power to decide what prices they should charge for their products. Bargaining power of customers Vista Verde Executive Village car owners has the power to change our offered prices since we may start giving more bonuses and discounts if their demand is decreasing. because if they didn’t like the service or the prices set, they might avail for other car washes, which can leave us with no choice but to adjust with changes. Threat of Substitute Products and Services There is a low threat in the substitute service in the carwash industry because here in the Philippines there is no Automatic Carwash, which doesn’t need manual labor and really quick in cleaning but highly expensive. The alternatives that the customers can choose from instead of availing car wash service are are mobile carwash and washing their own cars. The mobile carwash is inside the parking area of malls where …show more content…

In the Cainta, Rizal area we have competitors Teamworx, Mags and Wash, Gold Cast, and many more. Since those car washes started before us, they hold more knowledge and captured the market in Cainta. It is considered that they are ahead of us. Even though there are many car wash competitors, we only target the village car owners and we are the only carwash service that is located in the village. There are only few competitors around Cainta but they are known to the market, which keeps their business running. The carwash competitors take on different forms in order to make good profit. They don’t excessively advertise their business but customers are loyal to them because they are mostly and nearly located in a busy highway (Imelda Avenue) and busy mall (Q Plaza

Show More
Related

  • Lvmh Porter's Five Forces

    885 Words  | 4 Pages

    Below is an analysis of Porters Five forces with the Fashion and leather goods industry as a whole. Threat of Entry/Potential Entrants The threat of entry is

    Read More

  • Capsim Porter's Five Forces

    506 Words  | 3 Pages

    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.

    Read More

  • Porter's Five Forces In The Trucking Industry

    726 Words  | 3 Pages

    Another aspect of Porter’s Five Forces model is the threat of substitution, or how easy it would be for another company to take over the present business by innovating in some way. The threat of substitution is low but still present in the trucking industry. Due to the fact that a large majority of freight moved in the United States is moved by truck, it would be difficult to shift to a different mode of transportation. However, there are still other methods of travel that can be used, for example freight can be moved by airplane or by train within the United States. These alternative modes of transportation tend to be more expensive though, meaning it makes more sense for a company to simply purchase the services of a trucking company.

    Read More

  • Porter's Five Forces In The Supermarket Industry

    1484 Words  | 6 Pages

    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

    Read More

  • Porter's Five Forces For Bicycle Industry

    724 Words  | 3 Pages

    2.2 Industry Analysis - Porter’s 5 Forces Analysis Threat of Substitutes Bicycles and services from unknown manufacturers can provide huge substitution threats. Just as alarming for bicycle manufacturers is the internet: it is developing as an excellent medium for cheap marketing services. The price that consumer are willing to pay for a product is depends the quantity and the availability of substitute products. When a close substitute for a product is exist, industry profitability is suppressed because consumer will pick out if the price are high. Example consumer will compare the price of other bicycles with this bicycle in terms of quality and appearance, a customer can easily get another bicycle which is less difference but in more cheaper

    Read More

  • Analysis Of The Buyer Decision Process Of Porsche

    1875 Words  | 8 Pages

    It has five doors fastback. So, the above differences between those cars influence the buying decision process of customer. Here, first stages of buying process i.e. need recognition is required for both customer groups of Cayenne and Panamera. Traditional customers of Porsche may ignore the second stage i.e. information search because the information regarding the cars of Porsche is already known to them. But

    Read More

  • Kmart Supply Chain Analysis

    5718 Words  | 23 Pages

    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).

    Read More

  • Costco's Competitive Strategies

    729 Words  | 3 Pages

    How does Porter’s five-force analysis provide insights as to the likely success of a given business strategy? Given the competitive dynamics of your current industry (your employer), which of Porter’s competitive strategies is likely to be most successful? For us specifically, I think are in a vulnerable position. However, the real estate that we own is hard to lose. There are threats of substitutes is high as our renters (shops like Wal-Mart and Ross) are facing constant pressure from online retailers.

    Read More

  • Porter's Five Forces In The Oil And Gas Industry

    1601 Words  | 7 Pages

    External Analysis: Microenvironment Introduction The two major competitive factors controlling the external environment are the Macro and the Micro environments. While the Macro deals with the PESTLE affects, the Micro environment deals with the current structure of the industry and the effect of the roles played by the giants of the industry. Figure A-1 The Microenvironment includes the effect of rivalry, suppliers, buyers, distributors and the general public towards the strategy formulation by the company.

    Read More

  • Porter's Five Forces Analysis Pharmaceutical Industry

    720 Words  | 3 Pages

    PORTERS FIVE FORCES ANALYSIS - PHARMA INDUSTRY Using Porter's Five Forces we can analyse the scope of the pharmaceutical industry. It looks into five factors namely, competitive rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of customers. " Competitive rivalry: The pharmaceutical industry is highly fragmented with almost 3,000 pharma companies and 10,500 manufacturing units. Due to increasing demand of high-quality drugs, low-to-moderate entry barrier to the new entrant, the presence of a number of large and small firm this market is highly competitive.

    Read More

  • Marketing Segmentation Of Mercedes Benz

    916 Words  | 4 Pages

    The customers of Mercedes Benz look for products that have certain benefits that hold value for them. Therefore, in terms of benefits sought, they seek for high-end integrated technology and functioning of the car, along with consistency in performance and most importantly they will look to purchase cars that will offer high sustainability and reliability. The Mercedes is purchased among customers that heavily use the product on a daily basis. As mentioned in the demographics segmentation section that people who purchase these cars are in the high income class group, which means that these customers will regularly use a mode of transportation to travel to workplaces.

    Read More

  • Marketing: Marketing Mix In The Ice Cream Industry

    1497 Words  | 6 Pages

    Moreover, there were a few condominiums near our business location. A lot of college students and working adults are living in the condominium too. It is very convenient and easy for them to walk to our shop as it only takes 5 to 10 minutes to walk to our shop. But in the future, our goal is to locate our business to a shopping complex such as KLCC and MidValley.

    Read More

  • Risk Management Case Study: Amazon. Com

    893 Words  | 4 Pages

    5 – Main risks going forward for Amazon.com are to loose its competitive advantage because of opportunities that Internet offered to its competitor : low prices, deliver, costumer’s service, etc. Moreover, if the business develops, it may encounter logistical problems and limits : geographical and logistical constraints (energy, delivery and connection and some contries) and legislative constraints (censorship, taxes and state agreement : Corea, Sri Lanka, Indonesia, etc). Founded in 1994, Amazon started as an online bookstore and quickly became popular as it received high marks on several Internet rankings. Today, Amazon.com, Inc. is the world's largest online retailing company headquartered in Seattle, WA

    Read More

  • 5 Forces Analysis Of Porter's Five Forces For The Bag Industry

    880 Words  | 4 Pages

    Five Forces Analysis Threats of New Entrants - High The threat of new entrants for the bag industry is high since putting up a bag business is easy. There are a lot of different companies that are already in this kind of industry. There are international and local businesses that have successfully established their brands here in the Philippines. There is an increasing percentage of local brands here in the Philippines which indicates that the barriers to entry are low in the bag industry.

    Read More

  • Maxis Porter's Five Forces Analysis

    1306 Words  | 6 Pages

    3.2 Industry conditions (Porter 's Five Forces Analysis) Five forces which would impact an organization 's behavior in the market. Understanding the nature of these forces provides organizations the required insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). 3.2.1 Threat of new entrants (high entry barriers) High capital investment for competitor entry into telecommunication industry. Companies in this industry maintain development, spend fairly large amount of capital on network equipment and incurred high fixed costs. Besides, technologies are also considered as barriers for new companies to enter the market.

    Read More

More about Five Forces Analysis: Porter 5 Forces In The Car Wash Industry

Open Document