Strategic Management Plan: Competitive Advantage via Porter's Model

This report provides a strategic management plan utilizing Porter's Five Forces to analyze factors for gaining a competitive advantage. It examines the threat of new entrants, bargaining power of buyers and suppliers, the threat of substitute goods, and rivalry among existing competitors, specifically in the context of Polaroid Corporation. Strategies for improving competitive advantage, such as lowering prices and maintaining quality through advanced technology, are recommended. The analysis concludes that Porter's Five Forces is a valuable tool for assessing competitive factors within an industry, highlighting the importance of understanding these elements for strategic decision-making. Desklib provides access to similar reports and study tools for students.

Strategic Management Plan

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 Porter Five Forces can be used to analyse the factors for
a company to gain competitive advantage. Porter Five
Forces for the chosen company is mentioned below-
 Threat of Entrants- This element will help to analyse
the threats which a company from new entrants of the
industry.
 Bargaining power of buyers- It consist of total number
of customers and their perception and behaviour toward
the company (Juliana and Nyoman, 2019).
Porter five
forces
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Bargaining power of suppliers- It is essential for a
company to gain the loyalty of their suppliers so that they
will not switch to other company in the same industry.
In context of Polaroid Corporation, they must purchase
the raw material in appropriate price from their suppliers
and provide their manufactured cameras in low prices as
compared to market price to their suppliers in case they
require to use cameras.
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Threat of substitute goods- Substitute goods are those
goods which are used in place of each other (Mahat, 2019).
In context of Polaroid Corporation, they must trademark
and copyright their products so that no other company in
their industry will copy their process of manufacturing
their products, their services and many other operational
activities.
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Rivalry among existing competitors- Polaroid
Corporation is having various competitors in market such
as Vivitar, Mustek, Kodak and many others.
These competitors are having high market share and
better competitive strategies to survive in the industry.
This will impact negative upon chosen organisational
growth as most of the customers can switch to these
companies.
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Strategies to improve
competitive advantage
From the above information it is recommended that
Polaroid must focus to build few effective strategies to
gain competitive advantage within their industry and few
of the strategies are mentioned below-
They must lower the prices of their cameras as
compared to their competitor’s prices.
They are also required to maintain the quality of their
cameras by using advance technology for manufacturing
their cameras.
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Conclusion
From the above information it is
concluded that porter five forces is
used to analyses competitive factors
within the industry. There are five
elements in this model such as threat
of new entrants, bargaining power of
suppliers, bargaining power of
customers, threat of substitute goods
and competitive rivalry.
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References
Juliana, J.P.E. and Nyoman, Y.N., 2019. Factors influencing competitiveness of small and medium industry of Bali: Porter’s five
forces analysis. Russian Journal of Agricultural and Socio-Economic Sciences, 89(5).
Mahat, M., 2019. The competitive forces that shape Australian medical education: An industry analysis using Porter’s five forces
framework. International Journal of Educational Management.
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