Hello Classmates and Prof,
For competitive forces that can help shape a company’s competitive edge and they are:
Industry Competitors (Rivalry)
Substitute (Products)
Buyers (Customer’s bargaining power)
Suppliers (Vendor’s bargaining power)
New (Potential) Entrants (Threats of new company’s)
When looking at these forces, you can see that they might influence the manufacturing individually or as a joint forces, and when reading Pearce & Robinson, “…all competitors can be more or less prominent or active depending on the industry” (Pearce& Robinson, 2013, p.98). With the combination of all the forces might and will influence the effectiveness, value, or failure of a company or business.
With the Five Forces Model is one of the top used strategy’s within a company, it is a tool within a strategic planning; this model will shorten the complexity of a strategic planning. When looking of the opportunity that are out there I settled on an opportunity of the green energy industry, and with applying the five forces this is what I would do.
Industry Competitors (rivalry) & (New Entrants) With industry competitors and new entrants the green energy is an industry that is still developing and right now it really does not have a lot of competitors, but on the other hand, cost, knowledge, demand, industry capacity, market niche and quality all need to be brought in and look at when doing a plan. In the market is not packed with a large number of competitors that are entering this kind of industry. In this given market a person could make a company a great and successful one or it can cause it to fail. Within the dynamic contrast accompanying these forces characteristic to the planning is going to be necessary to verbalize success, or prescriptions of failure.
Substitutes (Other Product/Service Availability) With Green energy not being a larger part that demands, but can start to bring in followers. Customers do have a number of other energy options, and it is going to be an industry’s task to be able to build trust within customers, and for customers to want cleaner energy, along with being able to show the customers the necessity and benefits of having clean energy. With green energy it is very easily take
