Strategic Management: Porter's Five Forces Application - NCL

This presentation provides an analysis of business strategy using Porter's Five Forces model, with a specific focus on its application within a business context. It covers the five forces—Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry—and explains how these forces impact the internal environment of a company. The presentation highlights the importance of developing a precise business strategy to gain a competitive advantage in a competitive market. It uses the e-commerce sector and Amazon as examples, discussing the high level of competition, the bargaining power of suppliers and customers, and the threats from substitutes and new entrants. The presentation concludes that a well-defined business strategy is essential for companies to thrive and maintain a competitive edge in the global market. Desklib provides a platform for students to access this and other solved assignments for academic support.

Business Strategy (P3)

Content
 Introduction
 Porters five forces
 Conclusion
 References

Business strategy is related to development of a
business plan which is helpful in minimisation of risk
associated with the business (Bayo-Moriones, 2020).
The professional business strategy is required to
develop a business organisation in this stiff
competition world. This PPT will cover Porters five
forces and its application in business
Introduction

Application of Porter’s Five Forces model
In order to analyse the internal environment of a business it is compulsory to perform
porter's five forces analysis. The porter's five forces model is a deep approach which is
helpful in determination of forces which impact on the internal environment of the
company.
•Competitive Rivalry
•Supplier Power
•Buyer Power
•Threat of Substitution
•Threat of New Entry

Competitive Rivalry
The level of competition in e-commerce
sector is very high as many companies in
international market are focusing on
development and are giving tough
competition to Amazon. It is compulsory for
Amazon to formulate effective strategy for the
business which is helpful in development of
business organisation.

Bargaining power of Suppliers
In the functioning of Amazon the bargaining
power of different suppliers is relatively high
as per the current market situation. Amazon has
developed a precise approach at the
marketplace which is also helpful in identifying
appropriate level of suppliers.

Bargaining power of customers
The bargaining power of buyers is high as
customers demand products on huge discounts
from the company. Amazon also try to develop
various methods which are suitable for
determination of effective prices of products and
services in order to provide goods at fair rates.

Threat of Substitute
The bargaining power of buyers is high as customers demand products on huge
discounts from the company. Amazon also try to develop various methods which
are suitable for determination of effective prices of products and services in order
to provide goods at fair rates. Company also performs a meeting with senior team
members to develop a professional strategy for the business in order to develop a
competitive approach.

Threat of new Entrants
There is a high risk associated with the e-commerce market as there is threat from
new competitors who are willing to enter new market (Suoniemi, 2020). The
threat from new entry is directly related to Amazon as many companies are
planning to enter the e-commerce market. A company should enter new market
with professional business strategy in order to gain competency edge. The
business entity should plan for business development and must form a strategy
which is essential in providing competitive strength to the company.

Conclusion
From the above stated PPT, it can be concluded that it is compulsory for a national or
global company to develop a precise business strategy. In the era of stiff competition
between different companies it is essential for a business organisation to develop precise
business strategy in order to gain competitive advantage.

References
Maniora, J., 2018. Mismanagement of sustainability: What business strategy makes the
difference? Empirical evidence from the USA. Journal of Business Ethics, 152(4),
pp.931-947.
Moktadir, M.A., Kumar, A., and Rezaei, J., 2020. Critical success factors for a circular
economy: Implications for business strategy and the environment. Business strategy and
the environment, 29(8), pp.3611-3635.
Sheng, Y., Huang, Z., and Yang, Z., 2019. How does business strategy affect wage
premium? Evidence from China. Economic Modelling, 83, pp.31-41.

Thank You