International Business Challenge: Porter's Five Forces on ICE

This assignment provides a Porter's Five Forces analysis of the ICE (crystal methamphetamine) industry, particularly focusing on the Australian context. It assesses the threat of new entrants, competitive rivalry, buyer power, supplier power, and the threat of substitutes within the ICE market. The analysis highlights the Australian government's efforts to combat ICE usage due to its detrimental effects on the physical and mental health of young people. The high buyer power is attributed to the addictive nature of ICE, while supplier power is also significant due to high demand. Although the threat of substitutes exists, the government is actively working to eliminate the ICE market. The assignment references the Australian Anti Ice Campaign as a key source of information and context for the analysis. Desklib offers a platform for students to access similar solved assignments and study resources.

INTERNATIONAL BUSINESS
CHALLENGE

Porter’s Five Forces
• Threat of new entrants
• The ICE industry has been not been a very beneficial for the people so the Australian
government is trying to stop this practice (Australianantiicecampaign.org.au 2018). The threat of new
entrants is very low since the physical and mental health of the users gets damaged every now and then
indeed.
• Competitive rivalry
• The anti ice movement has been put in the foremost priority by the Australian government
since the use of ICE has been affecting the young people across the country. This is why the competitive
rivalry for producing the poisonous chemical material has been on the high indeed.
• Buyer power
• The buyer power is very high since the young people have become quite addicted to it. Some
instances of the Parkinson disease have been noticed as well. The young people are ready to pay any price
to buy the material since it is very addictive. The purpose of the government is to save the lives of the
young people at any cost (Australianantiicecampaign.org.au 2018)
• Supplier power
• The suppliers of this material are heavily on the demand indeed. This is why the suppliers can
deliver the products within the circle of the users. There are a number of supplers who deliver these
services to the young people so the supplier power is also very high indeed.
• Threat of substitutions
• Many people are getting affected because of using these poisonous chemical products. Many
suppliers are delivering these products to the young people. The threat of substitution is indeed high but
the government is trying to put an end to this practice.

References
• Australianantiicecampaign.org.au
(2018). Australian Anti Ice Campaign. [online]
Australian Anti Ice Campaign. Available at:
https://australianantiicecampaign.org.au/
[Accessed 12 Jun. 2018].