top of page

2.6.COMPETITIVE ANALYSIS: PORTER’S FIVE

Porter’s Five-Forces Model of competitive analysis is a widely used approach for developing strategies in many industries.The intensity of competition among firms varies widely across industries.

The collective impact of competitive forces is so brutal in some industries that the market is clearly “unattractive” from a profit-making standpoint. Rivalry among existing firms is severe, new rivals can enter the industry with relative ease, and both suppliers and customers can exercise considerable bargaining leverage.

 

According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces:

 

  1. Rivalry among competing firms

  2. Potential entry of new competitors.

  3. Potential development of substitute products

  4. Bargaining power of suppliers

  5. Bargaining power of consumers 

1. RIVALRY AMONG COMPETING FIRMS 

The most powerful of the porter forces this force tend to increase when competitors increases, as competitors become more equal the demand of the service or product decline in our organization we have some conditions that cause rivalry competing with the other firms.

 

In Colombia there are a number of magazines with a unique style, offering information about different trends and interests of the people. Magazines more demands in Colombia are those of culture, some of the competitors that exist in this gastronomic genre, offering low prices, promotional packages for subscription customers and different information channels as physical and virtual. These companies provide information that is not clearly organized. Our Magazine "Culinary Delights" We specializes in generating its customers a new experience in this style, revealing new trends and implement competitive strategies that differentiate us in the market.

 

2. POTENTIAL ENTRY OF NEW COMPETITORS 

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms increases. We are in a global market, where customers tend to change to enter a new lifestyle, new trends that influence the behavior and the use of new technologies. For these reasons, companies are willing to change their strategies or create new products and services that meet the needs of these clients. The entry of new competitors is a threat and an opportunity for "Culinary Delights" for the reduction of barriers to free trade, government policies, social, cultural, demographic changes etc, makes that we are at the forefront of these companies to to directing and create better strategies to position ourselves in the market

3. POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTS

In many industries, firms are in close competition with producers of substitute products in other industries, in our organization there substitute products that affect us directly and internet, various media such as television, radio, etc.

4. BARGAINING POWER  OF SUPPLIERS

For our company it is very important to maintain good relationships with our suppliers and the entire value chain. By having the best alliances with leading connoisseurs of the kitchen at national and international level, the main restaurants in the country, the best chef and the best experts in writing, design and research, printing and resource providers. It strengthens and loyalty in which we can meet the needs of our customers with the highest standards of quality and service to become more competitive in the market is created.

 

5. BARGAINING POWER OF CONSUMERS

The bargaining power of consumers can be the most important force affecting competitive advantage. For our company the success factor are our external and internal customers, so it is very important to maintain a good relationship with them through programs and loyalty strategies, meet our client before the market strengthens us and helps us to be better every day. Customers are the raison d'etre of our company so we must ensure that the experience unique and prefer us the best food magazine.

bottom of page