P & G Porter's 5 Forces
GLOBAL ECONOMIC CONDITIONS According to the report of World Bank, the global Gross Domestic Product (GDP) is expected to increase marginally by 0.9% in 2009. The report also states that the economic growth rate in developing nations is expected to decline from 7.9% in 2007 to 4.5% in 2009. The current economic climate is forcing the buyers to watch their expense and look for cheaper option available. So in these times, it is difficult for the company to maintain its profitability and sales volume as they have to compete other suppliers like Wal-Mart REGULATORY ENVIRONMENT Many consumer protection groups are voicing concerns over the presence of harmful chemical ingredients in some of the cosmetic products. Due to increasing public pressure, the Food and Drug Administration are …show more content…
P&G needs to keep up with the times and provides such online facilities in order not to give opportunity to other competitors. It should give focus on allowing customers to enjoy lower prices online and shop from homs. New channels of distribution could even be used as a means of further differentiation from competitors to appeal to consumers, through by this time, developing E-commerce is seen more of a necessity to be on par with competitors. PORTER’S FIVE FORCES MODEL The main aim of Porter’s Five Forces Model is to defeat the competition of market by crushing the challenges offered by competitors. This model was developed by Michael E. Porter in 1979. As stated in this model there are five forces which can influence the profits of company. These forces can help to analyse the prevailing completion in market. These forces are: • New competition threat • Threat of substitute products • Bargaining Power of suppliers • Bargaining Power of buyers • Competitive
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Capsim Porter's Five Forces
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5718 Words | 23 PagesThe 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).
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903 Words | 4 PagesThis theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
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