Porter's Five Model for Chocolate Sculpture Industry

This article discusses Porter's Five Model for analyzing competition in the chocolate sculpture industry. It covers the five forces - threat from substitute products, threat from existing rivals, threat from new entrants, bargaining power of suppliers, and bargaining power of customers - and how the industry can mitigate them. The article concludes that the industry has a unique advantage due to its online service of making chocolate sculptures designed by customers themselves.

Running head: PROFESSIONAL COMMUNICATION FOR INFORMATION AND COMMUNICATION
TECHNOLOGY
PROFESSIONAL COMMUNICATION FOR INFORMATION AND
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Porter’s Five Model
The Porter’s Five model is a tool that helps a business to analyze competition in the
market. The Porter’s five model has five forces consisting of threat from substitute products as
well as services, threat from the rivals that already exists, threat from new entrants, bargain from
supplier, and bargain from customers (Rothaermel 2015). The details of Porter’s five model that
determines the attractiveness of chocolate sculpture industry is discussed below.
Threat for New Entrants- With implementing the new mobile application for the
chocolate sculpture industry, the company will mitigate the threat of new entrants within the
company (Dobbs 2014). As this is a unique idea of allowing customer to customize their own
sculpture model, the company will face less completion in the market. Porter’s threat for new
entrants includes barriers to entry the competition. By introducing the strategy of designing own
model by the customers basically creates barrier to the entry of competitors in the market.
Threat for Substitutes- Substitute threat involves a threat of introducing a similar
product in the market that makes the company facing a high competition in the market. Porter
introduces an analysis to mitigate the threat of substitute. There is no such substitute for
chocolate. Own making models of chocolates introduces a new idea in the market and there is no
such other substitute of making sculpture of customer’s choice in the market (Aithal 2016). The
economic need that can grow for the mobile application of online making sculpture of chocolate
cannot be solved with some other substitute product. This online application helps customers to
make orders online, which is an additional feature of the chocolate sculpture industry.
Bargaining power of customers- There is a threat of bargaining that persist in every
company when it comes to shop visit shopping. When customers visits the shop for buying, there

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is a chance of bargaining about the product or the service availing. The company for the sake of
the customer has to lessen some amount of money even it does not permit. But when the system
goes online, then there is no chance of bargaining. The company can give discount if it thinks
suitable for giving (Sutherland 2014). This is the exact situation that has arose with the chocolate
sculpture company. This sculpture of designing chocolate models online helped the industry to
lessen the threat of bargaining from the customers. The customer can give online orders if they
agrees with the displayed price and can design their own model of chocolate.
Bargaining power for suppliers- The market inputs are mainly known as the bargaining
power related to the suppliers. As, the chocolate sculpture company is the only one company that
provides online service of making chocolate sculpture. Since, the company stands alone for this
service, the company can raise the price of the product (Yunna and Yisheng 2014). The company
can charge more for making the chocolate model. Only one supplier is available with the
customer to get this service. so, the company can earn more for this.
Industry Rivalry- The intensity for the competitive rivalry in the major part of
competitiveness in the industries. To understand the rivalry among the companies is very
important for a particular company to make its product successful in the market (Mathooko and
Ogutu 2015). The position of a company depends on the factor about how the common people
are taking the service or the product of the company more than other competitors. The company
of chocolate sculpture model has introduced the service of online selling of chocolate model that
is designed by the customer itself. There is no industry rivalry as there is no such other
companies that provides this service.

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References
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operating concepts & business systems. Browser Download This Paper.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management, 29(3), pp.334-354.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sutherland, E., 2014. Lobbying and litigation in telecommunications markets–reapplying
Porter’s five forces. info, 16(5), pp.1-18.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
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