Porter's Five Forces Model for Wesfarmers

Porters five forces
model

Introduction
Wesfarmers is a renowned Australian corporation that was
incorporated in 1914 and headquartered in Perth, Australia.
Wesfarmers has diversified business operations dealing in liquor,
convenience stores, hotels, and supermarkets and departmental
stores.
The presentation carries out an impressive discussion of
Wesfarmer's external environment. Mainly, the Presentation has a
discussion of Porter`s five forces model.

Porter five forces model
(Source: Tutorialspoint,
2019)
While creating the business level strategy, Wesfarmers undertake to understand the
external forces that will determine the profits.
Porter`s five forces model argues that all the organisations in the industry faces same
forces which ultimately affects the profitability.

Threat of New Entrants
• If the industry attracts high returns consistently then the
probability of new firms in the market increases. Easy
entering in the market depends on the industry structure.
• For example- In the retail industry, the competition is
strong and organisation such as wesfarmers hesitates to
strive for space on shelves.
• Renowned new entrant named “Aldi” has affected the
profitability. Being a German technology enabled company
“Aldi” has hampered the competitive advantage of
Wesfarmers and Woolworth.
• Although wesfarmers has high obstruction of existing
competitors and the threat of new entrants is low.