Porter's Generic Strategies Assignment

Running head: GENERIC STRATEGY
Business Level Strategy
Name of the Student:
Name of the University:
Author’s Note:

2GENERIC STRATEGY
Table of Contents
Critical analysis and discussion the impact of internet and digital technology on each five
competitive force.............................................................................................................................3
Critically discuss four threats of entry to new entrants in small-scale entrepreneurship in Kuwait
and suggestions to overcome these threats......................................................................................6
References........................................................................................................................................9

3GENERIC STRATEGY
Critical analysis and discussion the impact of internet and digital technology on each five
competitive force
Five competitive forces refer to Porter five forces. The five competitive forces are threat
of new entrants, threat of substitute, bargaining power of customers, bargaining power of
suppliers and industry rivalry. As commented by Wang and Zhang (2015), these five forces are
associated with competitive advantages. In order to gain competitive advantages in a new or
existing marketing, an organization need to analyze these five forces based on which they can
develop their strategies. In the recent years due to rapid enhancement of internet and technology
the business becomes dynamic in nature and this emerging technology leaves a big impact on
Porter Five Forces model.
Impact of internet and digital technology on Threat of new entrants
The nature of competitors is being changed due to emerging technology. By using the
digital technology the new entrants are able to bring in state of value proposition and art of
business model. By using, social, mobile and cloud technology the competitors can easily make a
platform for them in a new market. Therefore, the cyber security reinforces their entry as a result;
it is difficult for an existing organization to get any information regarding their new competitors.
In the recent years, Kuwait becomes popular for emerging technology (Eskandari et al. 2015).
Kuwait has been transformed into a global city by incorporating new technology in business
sectors. This country attracted skill talent around the world. However, the hospitality and tourism
sectors also started to follow modern technology to compete in global market. As for example,
Oriental Restaurant is a small hospitality sector of Kuwait. In the recent years, this organization
has been facing a great threat of new entrants due to emerging technology in this country. As

4GENERIC STRATEGY
commented by Mavimbela and Dube (2016), the nature of competition is changed by digital
business. Today the existing business organization needs to focus on the new entrants in the
industry as the new competitors are equipped with digitally-based value proposition and business
model. As argued by Fung (2014), digitalization is good for new entrants while it brings threat to
existing business. On the other hand, e-business model enables the competitors to get easy entry
as the companies take few activities in-house and value chain. As a result, the complexity in
management becomes decreased and the threat of new competitors may go up. In the context of
Oriental Restaurant, new entrants may use the digital technology and get an easy entry in Kuwait
hospitality industry. This will accelerate the new entry for this organization.
Effect of digital technology and internet on threat of substitute
Digital technology and internet enhance the threat of alternative product in similar
industry (Mavimbela and Dube 2016). For an organization, the switching cost is low due to use
of digital technology. Therefore, the customers have a tendency to switch from traditional model
to a new model. As for example, Oriental Restaurant provides home delivery by taking order via
phone. However, if another organization offers more advanced option to the customers by
utilizing digital technology then it will bring a big challenge for this organization. In the recent
years the hospitality sectors in Kuwait and other countries focus on the mobile app, which is a
big aspect of digital technology. Hence, the competitors of Oriental Restaurant may offer the
mobile app to the customers via which they can place their order quickly. This affects the
traditional service model of hospitality sectors and facilitates the threat of alternative product in
the similar industry (Sutherland 2014).