Porter's Five Model for Chocolate Sculpture Industry

Running head: PROFESSIONAL COMMUNICATION FOR INFORMATION AND COMMUNICATION
TECHNOLOGY
PROFESSIONAL COMMUNICATION FOR INFORMATION AND
COMMUNICATION TECHNOLOGY
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1PROFESSIONAL COMMUNICATION FOR INFORMATION AND COMMUNICATION TECHNOLOGY
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