Pasific Blue and House of Fraser - Essay Example

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Pasific Blue and House of Fraser

Internal forces are called Strengths if they add to the prowess and ability of a firm, and Weaknesses if they dilute its power and capacity. In this paper, we will be analyzing the cases of Pacific Blue in New Zealand’s airline industry and the House of Fraser in the context of the UK’s department store industry, looking at their problems and recommending solutions. Porter’s Five Forces Model Michael Porter in his book ‘Competitive Strategy: Techniques for Analyzing Competitors (1980) points out that there are five forces acting upon all firms in an industry that determine its chances of entry, exit and survival. Industrialists and producers set up barriers to entry or exit that can prevent or delay the entry of competition- so that they in the meantime reap the profits and revenues available from the interested consumers. These forces are the (1) likelihood of new entrants; (2) power of buyers; (3) power of suppliers; (4) degree of rivalry and (5) threat of substitutes. Thus any one and all of these forces can impact a firm’s chances of success or failure in a particular industry at any given time. Porter maintains that an industry is a group of firms that market products which are close substitutes for each other. ...Show more

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Answers to Case Studies: Pacific Blue and House of Fraser Name of the Writer Name of the Institution Answers to Case Studies: Pacific Blue and House of Fraser Introduction A business cannot exist in a vacuum. Right from the time it is formed, there are forces in both the external and the internal environment that are acting upon it and which can boost or deter its chances of success and survival…
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Pasific Blue and House of Fraser essay example
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