Using Porter's 5 - forces model, explain and evaluate the business competitiveness and industry strategic impact of a famous coffee chain in Malaysia known as Starbucks.
Using Porter's 5 - forces model, explain and evaluate the business competitiveness and industry strategic impact of a famous coffee chain in Malaysia known as Starbucks.
Chapter8: Strategic Analysis: Understanding A Firm’s Competitive Environment
Section8.3: A Firm's External Macro Environment: Pestel
Problem 3CTQ: Explain what favorable PESTEL factors support LEGOs efforts.
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Using Porter's 5 - forces model, explain and evaluate the business competitiveness and industry strategic impact of a famous coffee chain in Malaysia known as Starbucks.
![Porter 5 Forces
Strategic
Details
Industry
Significant
Profitability
(High/Low)
(High/Low)
Rivalry among
There are a huge number of
companies offering the same
products.
Competing Firms
• Firms compete for market share
in a saturated market.
• Low barriers to entry.
• Easy for new firms to enter the
industry as the initial
investment is not very high
Potential Entry of
New Competitors
and government deregulation.
Potential
There are a lot of substitute in
Development of
market
Substitute Products
Bargaining Power of
There are a huge number of
Suppliers
suppliers with low switching
costs for firms to change their
suppliers.
• Customers can easily find any
substitutes for that specific
Bargaining Power of
Buyers
items.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdffa09b9-40d3-474c-b2a9-e7387e0c2f32%2F4982e35b-caee-4050-b9fd-4f9999eced00%2F0yz0vsp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Porter 5 Forces
Strategic
Details
Industry
Significant
Profitability
(High/Low)
(High/Low)
Rivalry among
There are a huge number of
companies offering the same
products.
Competing Firms
• Firms compete for market share
in a saturated market.
• Low barriers to entry.
• Easy for new firms to enter the
industry as the initial
investment is not very high
Potential Entry of
New Competitors
and government deregulation.
Potential
There are a lot of substitute in
Development of
market
Substitute Products
Bargaining Power of
There are a huge number of
Suppliers
suppliers with low switching
costs for firms to change their
suppliers.
• Customers can easily find any
substitutes for that specific
Bargaining Power of
Buyers
items.
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