Compose a 2500 words assignment on michael porter’s five forces model. Needs to be plagiarism free!
Compose a 2500 words assignment on michael porter’s five forces model. Needs to be plagiarism free! Sometimes other companies will expand and a business that was never a threat to one company takes over and becomes their biggest competitors. They enter the market with various approaches. This company could give life and a new, fresh approach to a dyeing and staling market. Contrarily the said company could also serve as a model of how not to be in comparison to the already established businesses. The problem is that new companies that choose to enter an already completive business have a harder time starting out. At first they usually have to invest a large amount of money but if the other institutions in the market are doing very well in comparison more than likely the new capital will have a fighting chance. Switching costs is a key point that Porter makes. In particular switching costs pertaining to outsourcing. The world apparently seems to be headed in this direction. When a company outsources their billing, information technology and their clerical they dont have to pay benefits and usually since they are not officially employed by the said company there these workers will be paid much less.
Availability of Equivalent substitute products. Generic or comparable products is often used in the healthcare field as a away to cut costs. If the “alternative” medicine is at least close to the product it is trying to emulate it more than likely will survive. Furthermore it also helps if the the cost is significantly lower than the main stream products. On another level there is also the more substantially different medications those that are more natural and earth friendly. Those products that treat the person more holistically and also may hold a smaller price tag but the physical side effects maybe less than those drugs that one can only get at a pharmacy.