Porter’s five forces interact to shape the competitive landscape facing port authorities and port service providers. The 5 forces are stated below; 1. The rivalry among existing competitors 2. The threat of new competitors 3. The potential for global substitutes 4. The bargaining power of port users 5. The bargaining of port service providers These forces will impact ports of all sizes, which drive requirements for expansion of ports, service improvement, pricing decisions, and other management actions. These forces will impact ports of all types and sizes which want their ports to expand improve in service, pricing decisions etc. 1. The rivalry among existing competitors The extent of rivalry between ports is the first force shaping …show more content…
4) Bargaining Power of Port User: The bargaining power and control over port management exercised by carriers, shippers, and tenants in varying degrees are also important forces shaping the competitive landscape of port reform. This is determined by various factors, which are outlined below. a) Concentration of Port User Power: The larger percentage of traffic in the port controlled by a user, the more is bargaining power that user has in negotiations with port management and service providers. In certain situations, the port user can be so powerful that the port literally can’t afford to lose its business. b) Impact of Changing Business Relationships: Business agreements and realignments among port users can result in powerful players which port managers and port service providers must contend with in contract negotiations. These can take the form of slot sharing arrangements, conferences, strategic alliances, mergers, and …show more content…
Some ports can be valuable players in the national economy and the loss of important customers could have a big ripple effect on employment and local income 5) Bargaining Power of Service Providers The final force shaping the competitive landscape of port reform is the bargaining power of port service providers. Various groups and operators often have the ability to exercise control over the port by threatening to cancel services. a) Experience and Capabilities of Service Providers: Experience and the capabilities which are unique that the service provider brings to the port are a factor determining the bargaining position. The greater these capabilities, the more is power the service provider has in dealing with the port. b) Participation in Facility Financing: A service provider who participates in the financing of an activity is in a better bargaining position than one who does not. c) Choke Points in the Port: Existence of Choke Points in the port which facilitate slowdowns of port operations provides power that is often employed to extract concessions from port
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After the Great War (1914-1919) came the “Roaring Twenties” followed by the Great Depression (1929-1939). America became the richest country in the world at that time after WW I. Then on October 24th 1929 the stock market crashed and America experienced the Great Depression a few days later on October 29th 1929 . Some of the contributing factors of the Great Depression were 1. The crash of the Stock Market on Black Tuesday 2.
1a: What is the role/formal authorities of Customs and Border Protection (CBP) in securing trade in maritime ports? CBP’s role is to improve trade and the growth of trade by providing security and ensuring all parties adhere to the trade laws of the United States. These laws include imported goods, services, counterfeiting and other illegal activities such as human trafficking and drug smuggling. They accomplish is mission by providing security and screenings at ports of personnel and cargo. 1b: Consider how the Homeland Security Act of 2002 changed the structure of CBP?
” Before the 1984 Act, ocean carriers had to comply with the conference system and as a result, conferences had oligopolistic power. A conference system was used by ocean carriers from the 17th century. The conference system allowed carriers to set freight rates. The Shipping Act of 1984 gave greater independence and competition for ocean carriers.
The Five Force Strategy is used to refer to buyers, suppliers, substitutes, potential new entrants, and the competition with the industry. Higher institutions of education must have a strategy to compete and remain relevant in the realm of the industry. With technology evolving, more and more institutions are in operations. Talladega College has noticed the trend and seem to acknowledge the competition. They have worked to provide their students with competitive advantages and strategies for success.
The failure of one of this aspects is enough to end a cartel. In a hub-and-spoke conspiracy, the spokes delegate these organizational functions to a third-party, the hub, located at a different part of the value chain. For example, a Resale Price Maintenance (RPM) imposed by the hub can replace a price fixing agreement between the spokes. The spokes consequently communicate and make decisions indirectly through a third party. The introduction of a vertical relationship into the conspiracy thus facilitate coordination.
Corporate Strategies Vertical Integration Verizon implements a value chain analysis to understand the parts of the daily operations that create value, and those parts that do not. The value chain analysis is used to determine the level of competition, the type of products and services the consumer needs, and to figure out the ways that Verizon can stay sustainable and remain the market leader in the industry. This is vital because if done correctly Verizon will be able to gain high returns within the telecommunications industry by creating greater value to the customer. Verizon breaks their value chain into primary and support activities. The primary activities are research and development, infrastructure, marketing and sales, and customer
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
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.
The growing trend toward related combinations has important implications for M&A management because the successful outcome of such transactions has increasingly become dependent on the wide-scale integration of people (Cartwright & Cooper, 1992; Ivy, A.K
3 Porter’s Five-Forces Model Analysis Different factors can be combined together in a simple business model. This is known as Porter’s Five-Forces Model and competitive circumstances of an industry can be analyze through this model. These five forces are critical forces that they determine the attractiveness and competitiveness of an enterprise and have influence on a firm’s profitability in its industry. The five-forces analysis can not only show how Walt Disney company builds a sustainable competitive advantage in Entertainment-Diversified industry but also can seize business opportunities in future development.
The markets and hierarchies paradigm suggests that vertical integration eliminates the transaction costs of using the market to regulate exchanges (Williamson, 1975). Vertical diversification may be triggered for various reasons, such as enhanced bargaining power in terms of quality/quantity and margins (David et al., 2010), and desire to leverage networks to improve the sales of present products and increase profits (Tanriverdi and Lee, 2008). Diversification decisions are influenced by
1.5.5 Equity Joint Venture The joint ventures commitment varies from high to low, depending on the type of joint venture (i.e., minority, majority, or equity joint venture) (Hill, C. W. L., et al. 1990)." As reported by Coyle B. (2000, p. 6) a joint venture is a "business partnership in which two or more companies agree to invest […] in a particular business activity. The main purpose of many joint ventures is to create a strategic alliance between separate companies with common interests and complementary skills or experience."
Competitive Forces Beginning with, the first element is the threat of new entrant is at the lower risk for Cap Gemini. IT Companies such as Accenture, Deloitte, and Cognizant are in the market serving the clients with various products differentiation. Operating in the information technology service industry, one requires more capital to invest in new ventures. The newer technology helps the new niche venture to kick start without being dependent on size or experience. High sunk cost from product differentiation limits the new competition from entering the industry which lowers the economies of scale.