Porters Five-Forces Model.
It is a widely used approach for developing strategies in many industries. The intensity of competition among firms varies widely across industries.
Is usually the most powerful of the five competitive forces. The strategies pursued by one firm can be successful only to the extent that they provide competitive advantage over the strategies pursued by rival firms.
Technology and innovation perspective of international competitiveness highly focuses on industrial competitiveness. It indicates that, the roles of enterprises are to import technology (via foreign direct investments), learn this technology (through training and development), improve and consequently innovate.
Then competitiveness can be referred as a country’s ability to create, produce and distribute products in international trade while increasing returns on its resources.
Manufacturing Export Competitiveness Index (MECI)
Is a competitiveness measurement which is associated with technology and innovation perspective (Wignaraja, 2003).
Global Competitiveness Index (GCI)
Was developed to measure the capacity of national economies to achieve sustainable economic growth over the medium term. It mainly focuses on three factors; technology capacity, quality of public institutions and quality of macroeconomic environment.
Business Competitiveness Index (BCI)
The world Economic Forum (WEF) also developed the BCI to identify the competitiveness strengths and weaknesses of a country’s business environment through a microeconomic perspective. The outcomes of BCI help a country to identify factors which affect to increase its export competitiveness.
World Competitiveness Index
WCI computes and publishes by the World Economic Forum and Institute of Management Development since 1995.
Market Share
The market share of a country in world market as a indicator of competitiveness within three variables, namely; technical competitiveness reflected by research and development expenditure, price competitiveness reflected by the terms of trade and unit labour cost, and the output capacity.
International Institute for Management Development (IIMD). 2009. World Competitiveness Yearbook 2007 (Lausanne, IMD) [online], Available from: www.imd.org/research/publications/wcy/index.cfm (Accessed 28/03/2013)
International Trade Center (ITC), (2013), “Trade in Services Statistics Data base”. [Online: cited on 25th – 30th, June 2013]. Available from: http://www.intracen.org/trade-support/trade-statistics/ .
There is not a direct substitute product for the bubble tea, but perhaps consumers will prefer some products related to tae-based drinks or coffee (Soft drinks).
“Substitute products that deserve the most attention are those that are likely to improve their price performance quickly in response to market demands”
The threat of substitute products are highly perceived in our company because of the easy access people have to the products we are selling and how they can play with the prices to obtain an advantage.
For us to have a competitive advantage we need to have an effective differentiation that will create preference in our products with quality. It is necessary to know that threat doesn’t go away entirely but it is reduced.
It important to know and recognize the existence of subsisted products, because it is essential to have planning strategy to keep our costumers and to attract new ones
New entrants to busniess bring a new production capacity the desire to gain a foothold in the market, and sometimes, substantial resources with which to compete. These new competitors may come from several sources: market areas or segments you currently do not serve, indirect competitors with competing products, customers and suppliers. the entrence of new competitors to market depends on the wall to entry and expected reactions of others firms.
thinks to take in count to study the entry of new business into the market related to our company
- know if there is a growth and profit potential in our comapny to attract new customers
- list the gats that make difficult the entry on the business and how we can overcome them
-see if its posibble that our customers or suppliers can replace us in our business and make it all by they own
References:
http://articles.extension.org/pages/30418/potential-entry-of-new-competitors
This factor is important because it is the direct contact with the customer, which is practically the one in charge choosing our product. Colombian consumer has a specific trend which is to relate the cost of the product to the benefit obtained. Therefore it is important that by offering our product, the consumer has the perception that has purchased a good product with excellent service. That the purchase was a good choice. From here it depends on the success and profits of the company.
The essentials for a company, is to keep your customer group. Therefore it is important to emphasize product quality and service, as these will make us differentiate ourselves in the marketplace and have an edge over the competition. Therefore we must consider the proposals and constructive criticism of the customers in order to offer the best service. Improve communication in this regard with the customer is clearly effective.
All this to make the customer feel that their money is well spent on a product that meets their needs and provides a new experience of flavors.
References:
Claverism. (s.f.). Obtenido de http://www.cleverism.com/bargaining-power-of-suppliers-porters-five-forces/
MaRS. (12 de December de 2013). Obtenido de https://www.marsdd.com/mars-library/bargaining-power-of-suppliers-porters-five-forces/
Wilkinson, J. (24 de July de 2013). Obtenido de http://strategiccfo.com/wikicfo/supplier-power-one-of-porters-five-forces/
Supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When suppliers are to many its pretty easy to them gain power without even trying to damage the company .
if supplier power becomes too strong in the market, companies will try to find ways to reduce this power. If the demand for the product is high enough, there may be ways to develop alternate ways to produce or sell a product that reduces the supplier power. Product re-design, or product line diversification may be some of the ways that companies can try to dislodge powerful suppliers.
In our company we have more than 2 suppliers to make possible the product we’re selling but luckily our company is able to maintain only 2 suppliers and the power still ours.
References:
Claverism. (s.f.). Obtenido de http://www.cleverism.com/bargaining-power-of-suppliers-porters-five-forces/
MaRS. (12 de December de 2013). Obtenido de https://www.marsdd.com/mars-library/bargaining-power-of-suppliers-porters-five-forces/
Wilkinson, J. (24 de July de 2013). Obtenido de http://strategiccfo.com/wikicfo/supplier-power-one-of-porters-five-forces/