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Discuss with example, Porter five (5) forces models that determine the setting in which companies compete.

The bargaining power of the supplier.

Porter's five forces model is the model that is used to analyze the position and competition of the business in the market by analyzing a few factors that affect the business. Firstly, the bargaining power of the supplier. If the company has only one supplier, then usually the supplier will have high influence and power to affect the business. So to prevent this situation, the company will usually have few or more than one supplier to decrease the influence and power of the supplier on the business. This could give advantages to the business to control the cost.


波特五力模型是通过分析影响业务的几个因素来分析业务在市场中的地位和竞争的模型。首先,供应商的议价能力。如果公司只有一个供应商,那么通常该供应商将具有很大的影响力和权力来影响业务。所以为了防止这种情况发生,公司通常会少或多于一个供应商,以减少供应商对业务的影响力和权力。这可以为企业控制成本提供优势。




Bargaining power of the buyers

Secondly will be the bargaining power of the buyers. Buyer or customer is the main source to the company to sell their products which is really important. So that the size and amount of the customer will have a high influence on the company too. The buyer is also very sensitive to the element of price, quality, packaging, and so on. As the number of buyers is more, the bargaining power of the buyer could be lesser. In other words, while the buyer's amount is less, the bargaining power of the buyer is bigger.


其次是买家的议价能力。买方或客户是公司销售其产品的主要来源,这非常重要。所以客户的规模和数量也会对公司产生很大的影响。买家对价格、质量、包装等因素也非常敏感。买家数量越多,买家的议价能力就会越小。换言之,买方的金额越少,买方的议价能力越大。




The competitive rivalry

The third will be the competitive rivalry. Competitive rivalry is to analyze the company has how many the competitors, how strong is the competition. For example, if the product quality is better or worse than the competitor, is the product cheaper or more expensive than the competitor's product. It depends on the company's product gap and differentiation from the competitor's product.


三是竞争激烈。竞争竞争就是分析公司有多少竞争对手,竞争有多强。例如,如果产品质量比竞争对手好或差,那么产品比竞争对手的产品更便宜还是更贵。这取决于公司的产品差距和与竞争对手产品的差异化。




The threat of new entry.

Fourth is the threat of new entry. The threat of new entries is an important element that could affect the competition. This is to analyze if it was easy to enter the market in the same field and how easy and fast the new competitor will appear. It depends on the time, cost, knowledge, and technology of entry. As the type of product is complex and unique, the barrier to entry will be higher than normal. For example, the barrier to entry in the computer component market is much higher than the barrier to entry in the food market. This was because technology protection is much harder than making new food to sell.


四是新进入的威胁。新条目的威胁是可能影响竞争的重要因素。这是为了分析在同一领域进入市场是否容易,以及新的竞争对手出现的容易和快速。这取决于进入的时间、成本、知识和技术。由于产品类型复杂且独特,进入门槛将高于正常水平。例如,计算机零部件市场的准入门槛远高于食品市场的准入门槛。这是因为技术保护比制造新食品要难得多




The threat of substitute products

Fifth is the threat of substitute products. This was to measure how competitive the product was and also to know how saturated the market was. Substitute products will decrease the company's market share because it will give more choices to the consumer to choose based on their preference for quality, price, function, and so on. This analysis, it could help the company to find out the strong and weak points of their product that need to be improved and maintained.


五是替代产品的威胁。这是为了衡量产品的竞争力以及了解市场的饱和程度。替代产品会降低公司的市场份额,因为它会给消费者更多的选择,可以根据他们对质量、价格、功能等的偏好进行选择。从这个分析中,它可以帮助公司找出需要改进和维护的产品的强项和弱点。



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