Presented By:Vishal Budhraja

Devendra Singh

Anurag Yadav

Avinash Vastani

Vaibhav Purwar

Porter's Five Forces

Assessing the Balance of Power in a Business Situation

History IntroductionObjectiveDetailed StudyConclusionBibliography

Content

Michael E. Porter

Born in 1947.Professors in Harvard

Business School. Introduced Porter's 5

Forces Model.Written 18 books &

over 125 Articles.

Author, Management Consultant

New Entrants

Buyer Power

Threat of SubstitutionSupplier Power

Rivalry among

Competitors

External InfluenceCompetitive Strategy Inside feel of Market Analyzing market Mix.

Objectives of Porter’s Model

New Entrants Threat of New Entrants

Government Policy

Economies of Scale

Product Differentiation

Capital Requirements

Access to Distribution Channels

Rivalry among

Competitors

Equally Balanced Competition Slow Growth IndustryHigh fixed CostHigh Storage CostSwitching CostProduct DifferentiationHigh exit Barriers

Equally Balanced Competition Slow Growth IndustryHigh fixed CostHigh Storage CostSwitching CostProduct DifferentiationHigh exit Barriers

53%

19%

17%

4% 6%

BisleriKinleyAquafinaHimalayaOthers

Market share of organised Sector in INDIAMarket share of organised Sector in INDIA

Threat of Substitute

Threat of Substitution

Keys to evaluate substitute products:

Example:Electronic security systems in place of security guards

Fax machines in place of overnight mail delivery

Switching costs

Buyer inclination to  substitute

Bargaining Credit period Brand identity

Product differentiation

Threat of backward integration

Bargaining Credit period Brand identity

Product differentiation

Threat of backward integration

Power of Buyer

Buyer Power

Customers are concentrated, large or buy in volume .Buyer groups are likely to be powerful if:

Buyers face few switching costs

Buyer has full information

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

0

20

40

60

80

100

120

140

160

180

million Case

million Case

Exponential Increase in demand Bottled Water

Power of Supplier

Supplier Power

Suppliers are likely to be powerful if:

Supplier concentration Importance of volume to supplierDifferentiation of inputs Impact of inputs on cost or differentiationSwitching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry

Contrary

INDIA

0-14 years M 175228164

F 165190951

15-64 years M324699562

F 301821383

65 + years M 23925371

F 23138386

Age Distribution

Food Choice by Generation

18-34 56 %

35-53 47 %

54-65 37 %

65 + 19 %

FOOD WATER

Conclusion

WWW.Censusindia.gov.in

WWW.Bottledwater.in

WWW. Wikipedia .com

Competitive advantage by Michael Porter.

Bibliography

Any Question