Porter Five Forces Analysis

PORTER’S FIVE FORCES MODEL:
The Porter’s force model is known as an analysis that is used in the market environment to help influence aspects that the business cannot control but rather influence. The Porter is a strategic tool that measures the businesses opportunities and threats created by competitors involved in the market share that they are competing in order to please the final consumer’s needs. Porters five force model will impact the following:
1. Level of rivalry in the market
2. The threat of new entrants in the market
3. The availability of substitute products
4. The power of buyers
5. The power of suppliers (Business Studies Grade 12)
Another definition for Porter’s force model is:
THE LEVEL OF RIVALRY IN THE MARKET
The level

Price is in one of the biggest market in the retail industry. There are various leading competitors such as Edcon and the Foschini Group as well as Woolworths in this retail industry. All of these retail stores are competing in the same market for the same target market (fin24.com) and they are large in sizes just like Mr Price and has opened many various stores all over. Mr. Price is at a loss because people are brand orientated and prefer Edcon because of their patents as well as a variety of brands that they offer such as billabong, Guess and Sissy Boy and people prefer buying these well-known brands unlike the patents that are offered at Mr

CHALLENGES:
 For Mr. Price the availability of substitute products is not much of a threat because all brands sold in the store should provide the substitute goods unless they don’t have products due to differences of sizes where then the consumer could look for the same item at another retail store. But because Mr. Price is known for trading and purchasing from China, sizes can be a bit of a problem as the products won’t be accommodating for all size types, heights as well as physical appearances (www.hellopeter.com). This could lead to an issue because many consumers won’t find their sizes so they will go to the nearest retail store that can provide the right size for them.
 Mr Price has a variety of products that one can choose from and it is easy to select another item if one is not found in the selected brand. Mr Price orders all items in bulk and makes sure they are ready for the consumers when they want a selected item but maintaining these brand can be challenging because they require more money and not all are bought because they don’t all appeal to the consumers. POWER OF