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Tesco 5 Porter's Frameworks

In: Business and Management

Submitted By prayogiegiardi
Words 2319
Pages 10
Table of Contents 1.0 Introduction 2 2.0 Introduction of Porter Five Forces Framework 2
2.1 Threat of substitutes 3
2.2 Risk of entry by potential competitors 3
2.3 Bargaining power of buyers 4
2.4 Bargaining power of suppliers 4
2.5 Intensity Of Rivalry 5 3.0 Porter Five Forces on Chosen Organization 5
3.1 Threat of Substitutes 6
3.2 Risk of Entry By Potential Competitors 6
3.3 Bargaining Power of Buyers 6
3.4 Bargaining Power of Suppliers 7
3.5 Intensity of Rivalry 7 4.0 Conclusion 8 5.0 References 9

1.0 Introduction

The word strategy came from the Greek word “strategos”, which mean a general. According to Capon (2008), “strategy in an understanding of the external environment and the resources available to compete in the external environment.” Meanwhile, Shekar (2009) defined strategy as “a systematic approach to positioning the business in relation to its environment to ensure continued success and total security.” Strategy and change management simultaneously adapt to the current situation so that the business can run in continuous success, both in short and long-term.
2.0 Introduction of Porter Five Forces Framework According to Henry (2011), Porter five forces framework is “a tool of analysis to assess the attractiveness of an industry based on the strength of five competitive forces.” In this framework, Porter argues that in order for a company to get greater income depends on this five forces, the stronger each forces will result in limited ability of a company in order to established the goal. These are the following five forces:

2.1 Threat of substitutes

The first force is about substitutes, the word substitutes meaning that the particular product can be found and at the same time replace easily. So basically the threats come from the product that can come in similar needs (McGuigan, 2009). This substitutes...

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