Analysis of German Luxury Cars using Porter's Five Forces

Tutorial Assignment

Table of Contents
QUESTION 1...................................................................................................................................1
Analysis of mini case regarding German Luxury cars using the five competitive forces to
determine the attractiveness of the industry.................................................................................1
QUESTION 2...................................................................................................................................2
Description of risks David Jones faced with the differentiation strategy....................................2
QUESTION 3...................................................................................................................................3
Analysis of multiple risks for Walmart while expanding business in China...............................3
QUESTION 4...................................................................................................................................3
Advantages and disadvantages of international cooperative strategies of General Electric........3
QUESTION 5...................................................................................................................................4
Organisational capabilities of Starbucks and the way in which all of them translate core
competencies that give Starbucks a sustainable competitive advantage in the industry.............4
QUESTION 6...................................................................................................................................5
The way in which strategic direction of Alibaba Group is shaped by Jack Yun Ma...................5
REFERENCES................................................................................................................................6

QUESTION 1
Analysis of mini case regarding German Luxury cars using the five competitive forces to
determine the attractiveness of the industry
Porter's five force analysis is used for the purpose of analysing the competitiveness
within the industry along with it attractiveness (Direction, 2019). All of them were developed by
Michael Porter for facilitating businesses to analyse that the industry in which they are operating
is competitive or not. All the key elements of it are discussed below in context of German
Luxury Cars:
Competitive rivalry within the industry: This force is used to analyse competition
within the industry so that the businesses can get aware of all the key players which may pose
competition for them. Some of the major players in the German Luxury Cars are Mercedes Benz,
Audi, BMW etc. All of them are the competitors for each other and the competitive rivalry
within the industry is very high.
Bargaining power of suppliers: The external stakeholders that are delivering goods to
the companies to carry on business are known as suppliers. As the number of Luxury car seller in
Germany is very high and according to size of them there are end number of suppliers for the
industry. It demonstrates that for whole industry the the bargaining power of supplier will be low
because of large number of them.
Bargaining power of customers: All the individuals who are buying goods from the
manufacturers are known as customers. When there will be high level of competition within the
industry then it will result in higher level of bargaining of the customers as they will bargain with
the companies to buy the product on lower price. As the number of German Luxury car sellers is
very high therefore the bargaining power of purchasers within the industry is very high.
Threat of substitute: When one product could be replaced by other or two products will
be offering same benefits to the individuals then they will be considered as substitute for each
other. Luxury cars are bought by upper class of customers and if they want to buy a luxury car
then they will not consider any other option like non luxury cars. It demonstrates that the threat
of substitute for the German Luxury cars is very low.
Threat of new entrant: When a new company introduces itself in an industry then it will
be known as new entrant. As the luxury car industry of Germany is very large and an entity
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