Porter Five Forces on Kogan.com Ltd

Running head: COMPUTER INFORMATION SYSTEM
COMPUTER INFORMATION SYSTEM
Name of the Student
Name of the University
Author Note

1COMPUTER INFORMATION SYSTEM
Table of Contents
Porter Fiver Forces on Kogan.com Ltd...................................................................................................2
Threats from new entrants:..................................................................................................................2
Bargaining power of the suppliers:......................................................................................................2
Threats from substitute products:........................................................................................................3
Rivalry among the existing competitors..............................................................................................3
Bargaining power of buyers.................................................................................................................3
SWOT analysis of Kogan.com Ltd..........................................................................................................4
Internal strategic factors.......................................................................................................................4
External strategies factors for Kogan.Com Ltd...................................................................................5
Core components of Kogan.com Ltd.......................................................................................................5
Success of Kogan.com Ltd......................................................................................................................6
Recommendation for Kogan.com Ltd.....................................................................................................7
Bibliography............................................................................................................................................8

2COMPUTER INFORMATION SYSTEM
Porter Fiver Forces on Kogan.com Ltd
Kogan.com Ltd. is one of the important retailing sector in Australia. With the passing
years the organization has d3fined new strategies for better business in the retailing sector. The
organization operates with it’s headquarter in Melbourne, Australia. This offers the best leading
brands with proper prices and also the products are available in a wide range. Porter Five forces are
important to understand the strategy implemented by the organization in order to earn benefits. The
five forces includes threat from new entrants, rivalry between the existing organizations, threat from
substitute products, bargaining power of buyers and bargaining power of the suppliers. This five
forces are described in order to understand the industry rivalry. Thus in order to understand the
analysis of the retailing industry, Porter five forces are implemented within the Kogan.com.
Threats from new entrants:
With the innovation in technology the organization faces several challenge that are needed to
be understood properly. Entrants within the retailing sector creates immense pressure on Kogan.com
Ltd. The new entrants has developed strategies and started selling products with low pricing, adding
new values towards the customer’s proposition. Thus it becomes important for the organization to
develop proper management strategies that will help in overcoming this barriers effectively and will
also safeguard the competitive edge. In order to tackle the threats from new entrants it becomes
necessary to understand the customer requirements and develop product accordingly. By improving
the economies the cost per unit can be lowered. With defining the standards regularly the new entrants
will avoid to enter such market.
Bargaining power of the suppliers:
There are several suppliers available in the market that produces different price for same item.
Different retailer orders item from different suppliers. With a dominant supplier in the market the
Kogan.com Ltd will address a decrease in the earn percentage in market. Suppliers in dominant
position uses the negotiation power in order to have higher prices from the fields in the retailing field.