Gignine's Strategic Management: Porter's Five Forces Analysis Report

This report provides a strategic analysis of Gignine, a global services company operating in the UK market, using Porter's Five Forces model. The analysis examines the bargaining power of suppliers, which is considered high due to the availability of various service providers. The bargaining power of buyers is also high due to the competitive nature of the IT industry, necessitating competitive pricing strategies. The availability of substitutes poses a challenge, as consumers can easily switch to other companies offering similar services. The threat of new entry is high due to the dynamic nature of IT practices, requiring Gignine to differentiate its products. Lastly, the report highlights the high level of industry rivalry in the UK market. The analysis concludes that Gignine faces significant competitive pressures, emphasizing the need for continuous innovation and strategic differentiation to maintain its market position.

STRATEGIC
MANAGEMENT

Gignine belongs to global services industry which is involved in connecting service
providers to the ultimate consumers (Gignine, 2018). It provides operating system which works
on the model of uber which uses geo location and mobile devices. The model helps in
developing trust of the consumers by provided high skilled services to them (E. Dobbs, 2014). It
industry of UK is considered to be the fast-paced market place which requires constant
innovation so that adequate amount of market share can be earned by the organization. The
economy of Gignine is at boom. However, disruption can be found in changes in mobile
technology, demographics etc. It normally follows decentralised based model which is based on
a blockchain. To analyse the stability and market position of Gignine, porter's five forces model
can be applied in the following manner: Bargaining power of suppliers: Bargaining power of the suppliers tends to define the
relationship of the company with the supplier who deliver services to the organization.
The position of the supplier may be ambitious in case of IT industry. It is easy to bargain
with them as there are variety of suppliers who are available to deliver services to the
entity. However, in case of Gignine, the bargaining power of the organization in case of
suppliers is high. There is no monopoly available for the same and the organization can
easily switch from one supplier to other without any difficulty. Bargaining power of buyers: It is an important concept of porter's five forces, where,
bargaining power of the buyer is determined. It ascertains the position of the buyer. In
case of IT industry, the bargaining power of the buyer is high due to availability of
various companies belonging to the similar field. Hence, Gignine has to get involved in
competitive pricing strategy to remain competitive in the market (Mathooko and Ogutu,
2015). Hence, the services offered by this company is competitive enough in the market.
Moreover, company can bring adequate amount of changes in the same by bringing
certain differentiation in the products and services being offered by Gignine. Availability of substitutes: It ensures in addressing the availability products and services
being offered by other companies in the market. Since, there are various companies who
offer similar kind of services and products hence consumer easily switch from one
company to other if they are not satisfied with the services being offered by Gignine. If
there are adequate number of companies available to offer substitute products in that
case, Gignine can compete with them on the basis of price only (Rothaermel, 2015). The
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differentiation in the company is that it is being able to provide compelling financial
opportunities to its service users. Threat of new entry: IT related practices are quite dynamic and hence the chances of
entry of new companies is quite higher. In that case, the risk of new entry is quite high for
Gignine. In this case, it important for the entity to differentiate its products in a manner
that can attract large number of customers towards it. Moreover, changing with the trends
of IT industry can help in competing with the new entrants in the market.
 Industry rivalry: The number of competitors available for Gignine is quite high. Hence, a
low amount of customer loyalty can be experienced by the organization in UK. The
company is highly competitive in the market yet equally fragmented.
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REFERENCES
Books and journals
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.
Online
Gignine. 2018. [Online]. Available through < https://www.gignine.com/>.
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