MGB 4033 : Five Porter's Model

salam everyone !

several weeks before, i have learned Strategic Planning Process for the external environmental analysis.
 Michael Porter’s Five Forces Model (1980) is one of the most widely use in conceptual frameworks to assess the industry environment.

First : new entrants

In one industry new entrant can gather more competitor. The government make some threaat to international company who want to do business in Malaysia. This is a good way to help and protect local sector in the industry and make local product more confident to join the market.

Second : supplier

The unique goods from supplier can make them have advantage from others suppliers. The demand in the market for the goods are high but the supplier that has the good are not to many can make supplier has their own bargaining power in the market.

Third : buyers

Buyer has their power on the goods and also in the market. The buyer will be the person who buy the output from the industry.

Forth : substitute.

Substitute goods happen follow the market. For example the price. If coffee price are high people will tend to buy tea to replace the product. It hard to happen on people who are loyal consumer.

Fifth : rival.

In the market there has a lot of competitors in the same industry. The company should have their own strategy to attract or maintain the costumer believe in them.This model can help company a lot in research before entering the market and plan the strategy in the future for the company. 

it's can give a good opportunity to the business when they apply five porter's model. 

that's all from me.

till we meet on the next entry :)

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terima kasih sudi singgah dan baca ^^,

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