Applying Porter's Five Forces to Evaluate Competitive Forces in the Market Sector

BUSINESS STRATEGY

Apply porters five and evaluate the competitive forces to the given market sector
Porters five forces is the strategic management tool which is analyzing the industry and also increases the
profitability of the organization. Kellogg is implementing on the porters five forces which would do the
industry analysis.
Bargaining power of the buyers
Buyers want every thing form the organization, the product of the organization must include the things
which the customers are demanding and also at the low prices as well. The company must provide the
power to the customers and also provide the discounts and the offers on the products which would attract
the customers towards the company. The company must come up with the new and the innovative
products. New products of the company would attract the customers.

Cont...
Bargaining power of the suppliers
The companies which are manufacturing the products has to buy the raw material for the products in
bulk. So the suppliers which are supplying the products to the company can decrease the margin of the
profits on the raw material, through which the company would earn huge profits. Suppliers can also
increase the prices of the raw material through which the company would increase the products price and
also the company had to bear losses. The supplier is having the huge impact on the products and the price
of the product.