Porter’s Five Forces Analysis for Timbre Group in Singapore and China

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Running head: INTERNATIONAL MANAGEMENT
International Management
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Authors’ Note

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INTERNATIONAL MANAGEMENT
Porter’s five forces analysis (Singapore)
Five Forces Model presented by Michael Porter can be used for the purpose of exploring
business environment in which product or company functions. Porter’s five forces can help
in analysing competitive position using a simple framework for assessment and evaluation of
competitive strength and position of Timbre Group. Timbre Group is essentially a music
lifestyle corporation that operates in food and beverage, music education businesses, concerts
as well as festivals promotion. In essence, the business operations of the company consists of
music restaurants (live) as well as bars, intercontinental festivals, pizza restaurant and
delivery service, artist administration agency and music academic.
The theory is founded on the notion that there are five different forces that can ascertain the
competitive strength along with attractiveness of the market (Takata 2016).
Figure: Porter’s Five Force Model

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INTERNATIONAL MANAGEMENT
(Source: Morden 2016)
Threat of new entrants
In itself, the easier it is for new corporations to enter the market, the more stiff competition
there will be. The food as well as beverage market in Singapore can be said to be maturing
swiftly and there is little room for growth. Particularly, the size of the market also limits the
process of expansion of different retailers who have to handle increasing variety of products.
Reports reflect that there are around 7260 establishments in Singapore that has added $3230
million value and contributed towards 0.8% of GDP. The substantial rate of growth of this
segment in current years was upheld by opening of two prominent assimilated resorts and
shopping malls, which presented opportunities for various new players in this sector to enter
the market, and for subsisting operators to expand (Mwangi 2013). Nevertheless, future rate
of growth in the total number of outlets is expected to remain slow at 0.7% during the period
(2011 -2016). However, the retail as well as the market of food service is said to be highly
competitive and not easy to go through (Frynas and Mellahi 2015). Thus, it can be said that
the threat of new entrants for Timbre Group is high.
Threat of substitute products or services
Substitute products refer to those products that can necessarily replace a specific product but
are not specifically a direct competitor. There are around 7260 players operating in the food
and beverage industry and adequate opportunities for new entrants. Therefore, the threat of
substitute products as well as services are said to be high (E. Dobbs 2014). The food and
beverage retail segment of Singapore consists of 3000 hypermarkets, department stores,
provision shops, supermarkets that market agri-food, processed food as well as drinks.
Furthermore, Singapore has around 1300 specialty food along with drink outlets. There are
two major supermarket chains that control Singapore retail sector namely Cold Storage and