Porter’s Five Forces: Analysis Model for Business

This presentation discusses Porter’s Five Forces model, which is an analysis model for business that helps explain the sustainability of different industries. It explores the power of suppliers and buyers, the threat of substitutes and new entrants, and the competitive rivalry. The limitations of the model are also discussed. The presentation then delves into the application of the Five Forces model in the Australian civil and building industry, highlighting the interplay between the industry and broader environmental forces. The use of virtual reality in the industry is also explored. The presentation concludes with references for further reading.

ENTERPRISE
ARCHITECHTURE AND
STRATEGY
NAME OF THE STUDENT:
NAME OF THE UNIVERSITY:

PORTER’S FIVE FORCES
THE FIVE FORCES MODEL OF PORTER IS AN ANALYSIS MODEL FOR
BUSINESS WHICH CAN HELP FOR EXPLAINING THE REASON BEHIND
ABILITY OF DIFFERENT INDUSTRIES TO SUSTAIN PORTABILITY IN
DIFFERENT LEVELS (DOBBS, 2014) THE FIVE FORCES ARE:
 POWER OF THE SUPPLIER: SUPPLIERS HAVING STRONG BARGAINING
POWER ARE ABLE TO SELL RAW MATERIALS WITH LOW QUALITY TO A
HIGHER PIECE.
 POWER OF THE BUYER: THE BUYERS ARE HAVING BARGAINING
POWER TO DEMAND HIGHER QUALITY PRODUCT IN A LOWER PRICE.
 THREAT OF SUBSTITUTES: A FEAR IS ALWAYS EXIST THERE, IF THE
BUYERS FIND BETTER PRODUCT IN AN ATTRACTIVE PRICE.
 THREAT OF NEW ENTRANTS: IT DETERMINES, WHAT DIFFICULTIES
(OR NOT) ARE THERE TO ENTER IN A PARTICULAR INDUSTRY.
 COMPETITIVE RIVALRY: THIS FORCE DETERMINES HOW PROFITABLE
AND COMPETITIVE AN INDUSTRY IS.

LIMITATIONS OF PORTER’S FIVE
FORCES THE FIVE FORCES MODEL OF PORTER IS INCOMPLETE,
AS THE BROADER ISSUES OF BUSINESS IN A
MULTI CHANNEL, MULTI NATIONAL, MULTI PRODUCT
MARKET PLACE CANNOT BE ADRESSED BY IT
(Dälken, 2014).
 THIS MODEL FAILS AT TIME OF DEALING WITH
POLITICIZED OR HIGHLY REGULATED INDUSTRIES
OR ENVIRONMENT THAT IS COMPETETIVELY CONTROLLED.

LITERATURE REVIEW
 VIRTUAL REALITY LITERATURE REVIEW:
 THE VIRTUAL REALITY EVOLVED IN SEVERAL MANNERS TO BECOME MORE
SIMLIAR IN THE REAL WORLD. THERE ARE TWO DIFFERENT TYPES OF VR.
ONE IS IMMERSIVE AND ANOTHER IS NON IMMERSIVE.
 THE CONCET OF VIRTUAL REALITY CAN BE HELPFUL FOR COST AND TIME
SAVING AND IT ALSO PROVIDE AN IMMERSIVE, REALISTIC AND SAFE
EXPERIENCE TO THE USERS (Mathooko & Ogutu, 2015).
 FROM THE SOLUTIONS THAT IS WHITE LABEL, TO CUSTOM DEVELOPMENT
OF SOFTWARE AND HARDWARE IN AN SPECIFIC INDUSTRY.
CIVIL AND BUILDING CONSTRUCTION COMPANY:
 THE CHALLENGE FOR WINING IN THE BATTELE BETWEEN THE
COMPETETIVE INDUSTRIES BECOME SO ESSENTIAL IN THE BUSNIESSES
(Fischberg et al., 2013).
 THE COMPETETIVENESS OF DEVELOPMENT INVOLVES FACTORS
INDENTIFICATION AND APPERENCES OF THEM AND CIRCUSTANCES.

 THERE ARE SOME WAYS IN VIRTUAL REALITY
THAT DELIVERS VALUE IN BUSINESS:
 IT SHHORTENS TIME FOR THE MARKET.
 IT REDUCES THE RISK FOR PRODUCT DESIGN.
 IT INCREASES FLEXIBILITY AND AGILITY IN BUSINESS.
 IT ENABLES MODELS FOR NEW BUSINESS.
 IT TRANSFORMS TRAINING AND TALENT DEVELOPMENT.

AUSTRALIAN CIVIL AND
BUILDING INDUSRTY:
 THE NUMBER OF CONSTRUCTION PROJECTS IN AUSTRALIA IS
ENTERING INTO THE PHASE OF CONSTRUCTION SLIPPED 6%, AS
ONLY TWO SECTORS ARE REGISTERING TO INCREASE THE NUMBER
OF PEOJECTS. THE SECTOR OF CIVIL ENGINEERING OF AUSTRALIA
CONTINUES DOMINATING AS WELL AS ALSO ACCOUNTING FOR
NEAR ABOUT 78% OF THE TOTAL VALUE OF PROJECT PIPELINE.
 ACCORDING TO THE REPORT OF SEPTEMBER, 2018, THE
CONSTRUCTION OF PIPELWINE IN AUATRALIA REMIANS SO STRONG
WITH THE 1926 NUMBERS OF PROJECTS FOR CONSTRUCTION.
 THE KEY PLAYERS: CPB CONSTRACTORS, LEND LEASE, HUTCHISON
BUILDERS, PROBULID, NEXUS INFRASTRUCTURE, JOHN HOLLAD,
FULTON HOGAN, BCG AUSTRALIA. AMONG THEM THE LEND LEASE
AND CPB CONSTRUCTORS ARE THE MARKET LEADERS (W. T., 2013).

APPLICATION OF FIVE FORCES
MODEL IN AUSTRALIAN CIVIL
INDUSTRY
 THE FIVE FORCES MODEL OF POTER CAN BE USED BY
DIFFERENT AUSTRALIAN INDUSTRIES IN THE FIELD OF
CONSTRUCTION AND CIVIL SECTOR FOR DETERMINING THE
PROFIABILITY AND STRENGTH OF THE CURRENT MARKET.
 IN THE ECONOMY OF NATIONS THE BUILDING AND CIVIL
INDUSTRY OF AUSTRALIA IS THE KEY PLAYER SPECIALLY BY
BOOMING THE STRUCTURES OF THE CONSTRUCTIONS
SUCH AS ENGINEERING CONSTRUCTIONS, NON
RESIDENTIAL BUILDIINGS AS WELL AS THE RESIDENTIAL
HOUSES.

 THE VIRTUAL REALITY IS STRIVING FOR CREATING PERFECT
STRUCTRES BY SOPHISTICATED SOFTWARE’S AID, HARWARE
OF THE COMPUTERS WHICH IS ABLE TO SIMULATE
THE REAL WORLD (Sherman et al., 2016).
 THE THREAT FOR NEW ENTRANTS IN THIS INDUSTRY IS A BIG
THREAT BY CONSIDERING THAT IF A NEW COMPANY COMES
WITH VIRTUAL REALITTY THAT WILL BE APPPEARED AS MORE
INNOVATIVE THAN THE OTHERS. THE COMPANIES MUST HAVE
TO SPEND MORE MONEY ON DEVELOPMENT AND RESEARCH.
AND ALSO HAVE TO COME UP WITH NEW STRATEGIES FOR
REDUCING THE HUGE PROFIT OF NEW COMPANIES (Ohta &
Tamura, (2014).
 HOWEVER, THE TECHNOLOY OF VIRTUAL REALITY IS CHANGING
THE COMPETETION IN THE BULIDING AND CIVIL INDUSTRY IN
AUSTRALIA.

INTERPLAY BETWEEN THE CIVIL AND
BUILDING INDUSTRY AND THE
BROADER ENVIRONMENT FORCES
 THERE ARE SO MANY ORGANIZATIONS IN THE INDUSTRY OF
BROADER CONSTRUCTION FOR ACHEVING HIGH LEVELS OF
PERFORMANCE WITH THESE STRATEGIES. BUT IT CAN BE SEEN
ONLY CURRENTLY THE INDUSTRY IN AUSTRALIA HAS BEGAN IN
FOCUSING ON APPLYING THE STRATEGIES TI THE INFRUSTURE
PROJECT IN AUSTRALIA (Dougan, 2016).
 SOME OTHER MODEL CAN BE USED FOR ACCESSING THE
CONDITIONS OF THE MARKET TO PRESENT THE VIRTUAL
REALITY TECHNOLOGY INCULDING THE ANALYSIS TOOL RELATED
TO PESTLE. THE SWOT ANALYSIS IS RECOMMENDED TOO FOR
THE ANALYSIS OF INTERNAL WEAKNESS AND STRENGTHS (Van,
2013).

REFERENECES:
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
Dälken, F. (2014). Are Porter’s five competitive forces still applicable? A critical
examination concerning the relevance for today’s business (Bachelor's thesis,
University of Twente).
Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and
other factors that influence the choice of response strategies adopted by public
universities in Kenya. International Journal of Educational Management, 29(3), 334-
354.
Fischberg, D., Bull, J., Casarett, D., Hanson, L. C., Klein, S. M., Rotella, J., ... & Force, A.
C. W. T. (2013). Five things physicians and patients should question in hospice and
palliative medicine. Journal of pain and symptom management, 45(3), 595-605.
Sherman, William R., and Alan B. Craig. Understanding virtual reality: Interface,
application, and design. Morgan Kaufmann, 2018.
Ohta, Y., & Tamura, H. (2014). Mixed reality: merging real and virtual worlds. Springer
Publishing Company, Incorporated.
Dougan, M. (2016). A Political Economy Analysis of China's Civil Aviation Industry.
Routledge.