Essay on Porter's Five Forces

Added on - 03 Jun 2020

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ESSAY
Table of ContentsINTRODUCTION...........................................................................................................................31. Power of suppliers aspect of Porter's Five Forces..............................................................32. Threat of new entry aspect of Porter’s Five Forces...........................................................5CONCLUSION.................9REFERENCES..............................................................................................................................10
INTRODUCTIONPorter's five forces analysis is a technique for measuring competition of the business. It isused to evaluate the working of an organisation in comparison of other organisations. It uses fiveforces to analyse the intensity of competition occurring in the market. It combines forces ofmicro environment with the forces of macro environment in order to evaluate the accurateresults. It is used to analyse the current status of the business in order to analyse its functioning.This essay is based on the power of suppliers and threat of new entry aspects of Porter’s fiveforces.1. Power of suppliers aspect of Porter's Five Forces.Porter's five forces analysis is a technique of measuring competition in the business. It isused to evaluate the current working status of the business in order to make desired changes.The wholecriteria of Porter’s Five Forces Model revolvearound the five distinctivemeasures which are used to evaluate the competition of the business.HIGH END luxurious hotels provide various kinds of facilities to their visitors in orderto provide them comfort and satisfaction(Dobbs, 2014). As the competition is rising, it is veryimportant for the industries to identify their strength and weaknesses in order to provide theeffective results. For expanding business inHIGH END industrial sectors, it is very importantfor the organisation to conduct overall feasibility study of the market in terms of growth,technology, economic and all other factors; this will help them to conduct business activitieseffectively. In United Kingdom, thereis large numberofHIGH ENDhotels so for expandingbusiness in such sectors, it is very crucial to examine the overall information of the competitorsattached to it.When the organisations need to enter in theHIGH END market, it is very important forthem to analyse the overall market. The power of supplier of Hotel Industry is comparativelylow, the hotel industry is only subjected to the power of labour, trained staff and personnel andthe industry encompass the huge requirement of them. HIGH END industries are not effected bythe bargaining power of the suppliers and on the other hand it has low and indirect pressure upontheir competitiveness. If the new entrants wants to maintain the competitive advantage in theHIGH END industrial sector, it is very important for them to provide some unique offering totheir customers.
Whenever organisations wants to enter in the HIGH END industrial sectors, it is verycrucial for them to analyse the market, as group of individuals wants to expand their business inluxurious hotel industry, it is important for them to gain information about the other HIGH ENDluxurious hotels of United Kingdom, so as to maintain their standards. This will include gaininginformation regarding all the top hotels which are present in the UK. The major dominant ofHIGH END hotels in UK are Hilton and Marriott, the services and the offering provided by themis remarkable, and there suppliers are also very prominent.The new organisation who wants to expand their working HIGH END industry can usetools of strategic competition for analysing the HIGH END market.The hotels and resorts of UK are highly luxurious and provides unique qualities to theircustomers. Every year approximately 12 to 15 % of the organisations shifting their businessfunctions or it can be said that converting their business operations into hotel and hospitalitysectors for enhancing their profitability as it provides 20-30 % more profitability in comparisonto the other sectors of the industry.In HIGH END hotels like Hilton, Grand Hyatt and Marriott the power of supplier is low,as these organisation made worldwide purchase from more than 4000 suppliers globally and thebargaining power of the supplier is low there are number of suppliers who are ready to offer theirproducts and services to such HIGH END industriesMoreover, the importance of order volume for Hilton and Marriott suppliers is paramountand there is no supplier switching cost for such HIGH END hotels in most cases.HIGH END hotels run supplier diversity program that ensures purchasing from, and thedevelopment of, socially diverse suppliersEvery business constitutes various competitors andespecially inHIGH ENDhotel industry, there are various numbersof choices available for thepeople so in such situation, it is very essential for the organisation who wants to expand theirworking into HIGH END industries to conduct proper study of the market on regular basis. Inthis way, they can come up with proper strategies and regulations.The first and foremost step for any industry before expanding their business is toexamine the market in which they want to expand their operations.Analysing competition isalso one of the most important task conducted by the organisational members so that they canapply proper measures to overcome the barriers. For managing stable position in the market, it isvery important for the industries to maintain their competition so that people will choose them
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