Porter Five Forces

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Introduction The reason to conduct this research on the chosen topics; Porter Five Forces, a case study of Operations Strategy at Galanz, and an article of What killed Michael Porter’s Monitor Group, is to understand the general concept and link between the organization and its environment. This paper will highlight the components of business strategies including; goals, core activities, product market focus, and value proposition. The reason to choose these topics was they share the same theme of business strategies linking it with the environmental factors (Huang, Dyerson, Wu & Harindranath, 2015). Strategy is one of the critical elements while formulating any business plan. A good strategy will help the organization in identifying the opportunities…show more content…
In this context, attractiveness is referred as the overall profitability of the industry. Porter's five forces are divided into two groups – one is horizontal and other is vertical competition. “Horizontal” competition consists of three forces; the threat of substitute products or services, the threat of new entrants, and the threat of established rivals, while on the other hand, “Vertical” competition consists of two forces; the bargaining power of suppliers, and the bargaining power of the customers. Environmental Analysis A thorough environmental analysis will help the company understand the nature of the competition, and what strategies should the company implements to succeed in the industry. The dominant environmental components can be pace of the technological changes in the industry, number of rivals, their scope, size, and differentiation, the current market growth and size, and the cost factors; learning capabilities, economics, and entry and exit barriers. Case Study: Operations Strategy at…show more content…
The company sets its benchmark by developing new and innovative products and technologies. This is Galanz flexibility. Second is the manufacturing of low-price but high-quality products which will provide enlarge market share, means the company is following “small profit but with quick turnover” strategy. Third component is the innovation, through which the company develops its key parts with the help of its own technology, and by investing in R&D. By practicing this, Galanz has set an entrance barrier for other competitors which now have become the key strategy in innovation. The competitive strategies for Galanz are the low-price of Microwave Ovens, and high-quality of the products. While the most important Operations strategies are 24/7 working of employees in production line, and in three shifts. Galanz has gained the economies of scale by producing the products at the lowest-cost with the high-class

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