1. Michel porter generic strategies facilitate firm to decide how to compete in a particular market place. Explain the three possible competitive strategies available for firms to compete in a particular industry or a market. 2. Explain the concept of strategic group analysis illustrating using a practical example.
1. Michel porter generic strategies facilitate firm to decide how to compete in a particular market place. Explain the three possible competitive strategies available for firms to compete in a particular industry or a market.
2. Explain the concept of strategic group analysis illustrating using a practical example.
Michel porter five forces model -
1. Competitive rivalry - there are many competitors of a firm in the market so in this we consider these things like
- Number of competitors?
- Solid competitive strategy?
- Innovative in processing the order?
- Difference in quality?
2. Threat to new entry - a company may earn profits when there are minimum number of firm but when the firm enters it will result in decrease the market share.
3. Threat of Substitute - there are many firm which produces same good and Service it may lead to high competition in the market the market share will decrease.
4. Suppliers power - it include the power of suppliers at what prices they are able to sell There good and Service to the customers.
5. Buyers Power - It include the power of the buyers at what prices he is able to purchase the goods and services after bargaining with the suppliers.
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