1. Current inclination of the company to explore only “opportunities that are not considered profitable for the large organizations”. Propensity to niche-market only instead of aggressively competing in the market for a bigger market share.
2. Conservative (in contrast to aggressive) marketing strategies, relying mainly for repeat sales on “quality of its products” and on its “competitive pricing strategy” with its related price flexibility rational
2. Profit maximization as a result of faster turn-over of products and service opportunities brought about by a likely sales increase due to increased access to company products and services by existing and prospective clients
5. Potential inability to respond quickly and appropriately to a fast-changing, technologically driven developments in the industry which might make the company become a mere industry follower instead of becoming an industry leader; a price taker instead of becoming a price leader.
Porter’s Five Forces is a business analysis tool that is focused on the industry with which the firm or the company operates. Accordingly, a chief executive must use this business tool in order to analyze how his company fares well within the industry, and the analysis is contextualized given the peculiarities of the industry within which it operates. The framework of analysis, developed by Michael Porter, indicates the five forces which Porter claimed to be influencing the behavior of a particular company. These forces are: supplier power, buyer power, barriers to entry, threat of substitutes, and degree of rivalry (Porter, 1998).
The facts of the case that were given were quite limited to do a comprehensive analysis of the industry with which the company operates. As such the analysis using Porter’s Five Forces is quite limited to the facts that were given, plus certain assumptions and educated guess works.
According to the given facts of the case, the company has a good working