Analysis of Porter Five Forces and Value Chain of Oxfam

OFXAM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Porter five forces.........................................................................................................................4
Analysis of inbound logistics, outbound logistics and operations..............................................6
Analysis of two support activities...............................................................................................7
Value adding activities................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Introduction
Oxfam is the non-profitable organisation which is providing services to global
consumers. This is working since longer duration to eliminate global poverty, disaster relief. It
was established in the year 1942. Its main aim is to spread necessary changes so that each person
is empower to make own decision and can grow well in society. The main strategy to work better
is to work together to make the fair world. By working in unity better future can be created and
inequality can be eliminated. Oxfam wants to make the society safe where people can enjoy their
rights and can get enough sources that may help them in getting proper meal every day. Oxfam is
working in many locations and it has many volunteers those who are serving well to all. Oxfam
is continuously organising some campaign to reduce inequality and to promote equal rights to
all.
In the year 1995 many non-government firms came together and shared their resources to
form an international Oxfam. Oxfam is making efforts to reduce sexual harassment. It provides
immediate services to people those who are getting exploit sexually. This is working with
government to make such effective policies so that people those who are suffering from such
kind of issues can be protected. In the year 2017-18 Oxfam has provided services to around 22.3
million people. Government provides funds to this unit and this money is used in several social
work that may help in improving life of people. It is working with government towards
developing such kind of structure where injustice is not there. Injustice can be minimised with
suitable human actions and with political support.
The major focus of Oxfam is one various areas that is economic justice, protection of
human rights, gender equality and essential services. Whenever any kind of crises occur then
Oxfam provide support to the people so that they can manage their life after this crisis. Oxfam is
the leader that has provided water sanitation for impoverishing the world. In order to eliminate
unfair trade practices, it has taken step to organise make trade fair campaign.
Oxfam is nominated to get best charitable organisation in the year 2013. There are 20
member organisations those which are affiliated with Oxfam international. These member units
conduct survey to know the rout cause of poverty and find out the best solution to remove
injustice from society. Oxfam international secretariat has employed around 300 staff globally

and its affiliates has given opportunity to more than 10000 people. There are around 50000
volunteers and interns those who are providing their services to more than 90 countries.
It ensures practices of corporate governance are followed properly hence maintain
transparency. In the year 2018/19 total fund of company was 1018 million Euros and it has spent
998 million Euros in the same year. Oxfam is getting 41.7% funding from institutional
fundraising and 39.4% funding are getting from public fundraising.
MAIN BODY
Porter five forces
Porter five force is basically the framework which helps the organization to analyze their
competitiveness in market and thus helps the organization to assess the intensity of competition
within the industry.
Threat of the new entrants
The threat of the new entrant is basically low for Oxfam. For entering within the social
industry, generally a high amount of capital as well as investment is required which is difficult
for the new entrants. Thus, due to this, threat of the new entrant is a low force for Oxfam.
Besides this, the service differentiation is generally high in this industry and thus this makes this
force much lower for Oxfam (Shaaban and Magsi, 2019). Due to high service differentiation,
new entrants generally find it difficult to bring innovative products as well as services and thus
industry places a great emphasis on advertising as well as promotion of the various products and
services. This high cost becomes a major reason that why new entrant are reluctant to enter this
industry. In order to mitigate this threat, Oxfam can build the economies of scale in order to
lower down the fixed cost per unit. Besides this, company can give a high focus on advertising as
well as promotion of their products and services.
Bargaining power of the suppliers
This force generally relates to the extent or degree to which the suppliers are able to
bargain for lowering the price of products, services etc. This force is generally low in social
industry which makes this fierce weaker for Oxfam. There are high number of suppliers within
social industry and this means that these suppliers mainly have low or less control over the prices
and cost of the raw material thus making their bargaining power low for Oxfam. As there are lot
of suppliers in this industry thus Oxfam can easily switch other suppliers wherever they want
when they find that the suppliers are demanding high for any aspect. Besides this, as the