Demonstrate an understanding of the Five Forces Model by choosing an organizatio

Question

Demonstrate an understanding of the Five Forces Model by choosing an organization or product - then by answering the questions, provide an example for each of the forces in relation to your chosen organization or product. You may need to do a quick Internet search to determine some of the responses for the questions below.

Organization or Product:

1. Who are the current competitors?

2. Is there currently a threat of new entrants? If so, where are they coming from?

3. Who are the main suppliers? If you cannot find them by name, what types of materials are supplied.

4. Who are the main buyers?

5. What might be considered a substitute product/service?

Please be clear and detailed with answers

Explanation / Answer

Porter five forces is an effective way of analysing company's situation in the present world. By analysing the external factors which contribute to the situations.

Let us Consider the situation of Dominos (Pizza Product) - Dominos majorly operates in fast(instant) food segment with primary focus on Pizzas.

1. Competitors : The major competitors for the Dominos are, Pizza hut, Smokin Joes Pizza, Papa John's Pizaa. These are the major competitors in the Pizza segment in the present market of U.S.

2.Threat of New Entrants : Majorly the new players who come are refined to certain locations only, can't have the reach Dominos got all around the world. The threat can be there by new entrants from other established fast food segments like KFC, Burger King, Subway. So for a new player it is hard to expand its reach like Dominos does.

3. Main Suppliers - The main supplies that constitute for Dominos Pizza is Crust bread, Cheese, flour, tomato sauce. The suppliers are Leprino's Food, Paradise Tomato, Ardent Mills. And they have limited bargaining power compared to customers.

4. Main Buyers - The main buyers are the end customers, mainly the pizza lovers. The name and fame which Dominos got, has favoured its reach to all major countries in the world namely U.S, Cananda, India etc.

5. Substituents - The main substitutes for the product are other fast food products, mainly Burgers, breads, sandwiches, Chicken nuggets(other chicken products). Major fast food chains offer a variety of these products combined/seperately in their product offerings.

Conclusion - The major threats for the products are for existing competitors and other bug players of fast foods. But Dominos is continously innovating with their product ranges from time to time to cater the needs of their customer base.

Just comment if you need any extra information.

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