Porter Five Force Essay Example for Free

Porter Five Force EssayFood services (high)Bargaining ply of suppliers low.Food is a low cost industry there is only a little price difference between divers(prenominal) suppliers. The suppliers want to sell their raw material should accept the marketing price.Bargaining power of buyers lowThe buyers can decide to choose a cheaper nutriment because there is so many food service they can choose, the industry should establish an commonsensible price.Threat of sassy entrants mediumPeople like to try new food. But if the industry has their own fixed customers, and making their own cooking style, the new entrants will not let a big entrant to them. Threat of substitutes highThe food can be replaced by another better food if the people like. It is not necessities to eat only one kind of food. There must to be some same cooking style in different brand, such as McDonalds with KFC.Industry competitors highFood service is very popularize in our life, there is many new food entrants approximately us, people always like to try different food.General merchandise (low)Bargaining power of suppliers lowThe general merchandise as a take position to sell the products, as a result, suppliers power is low. Suppliers hardly affect the industrys profit.Bargaining power of buyers highThe general merchandise becomes popular, and we have a lot of branded supermarket. Buyers can have much more choice between different supermarkets they can compare the price to choose a cheap one.Threat of new entrants lowGeneral merchandise cost is high so before entry this industry the entrants need lots investment. more supermarkets already branded so the new entrants hardly to threat the old one.Threat of substitutes low or mediumThere are might be many shopping way, like online shopping. However, general merchandise is the necessary part of peoples life, and also their different type of merchandise is the key agent to win. Industry competitorshighThe brand is various in this industry , they need branding their own store to strengthen the impression of people.