SIM336 Strategic Management_ University of Sunderland London (GC0442)

Table of Contents

1.0        Introduction.

2.0 Overview of Porter’s Five Forces model

Strengths of Porter’s five forces model

Limitations of Porter’s five forces model

3.0 Company analysis.

Overview of Nissan.

Application of Porter’s Five Forces model to Nissan.

4.0 Conclusion.

References.

1.0   Introduction

According to APM (2018), Strategic management is defined as the process of planning, implementing, identifying, and selecting long- term goals of a business firm. Aithal (2016) mentioned the three key factors of strategic management including strategic choice, implementation, and analysis. This assignment evaluates how Porter’s (1985) model is effective for practitioners to evaluate the competitive position of the business. In the first section of the study; the overview of Porter’s five forces model is described with benefits and limitations. After that; this study identifies the process of implementing Porter’s five forces framework in Nissan. This paper mentions the impact of New Technologies on Porter’s Five Competitive factors. At the final stage; this paper recommends some recommendations to Nissan for improving the overall performance.

2.0 Overview of Porter’s Five Forces model

Mohapatra (2016) stated that the analysis of Porter’s Five Forces is used to evaluate the level of competition and the market position of a business organization. These forces are used to find the strengths, power, competitive advantages, and weakness of the business firms (Andriotis, 2014). In 1979, Porter’s Five Forces are developed by Michael Porter (Andriotis, 2014).

The first force is the threat of new entrants that indicates that the entry of new competitive firms in the market is a threat to the existing firm (Hunger, 2017). This cause directly influences the profitability and other performance of the existing firms in the market (Porter, 2017). The second force is the bargaining power of the consumers that indicates the right and power of the consumers at the time purchasing products and services in the market. It is noticed that high bargaining power is a threat to the existing firms in the market (Porter, 2017). The third force is the bargaining power of the suppliers that indicates the right and power of the suppliers for the price of raw materials (Porter, 2017). The high bargaining power of the suppliers is a threat to the existing firms in the market.

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The fourth force of Porter’s model is substitute products or services that indicate the availability of alternative products and services with the same quality and price in the market (Micheli & Manzoni, 2017). The higher availability of alternative products and services is a threat to the existing firms in the market (Porter, 2017). The fifth force of Porter’s model is rivalry among existing firms. The higher level of rivalry among firms is a threat for all existing firms in the market (Porter, 2017). For this reason; every firm is needed to evaluate Porter’s Five Forces to analyze the market condition and take a strategic plan to reduce the threats in the market.

Strengths of Porter’s five forces model

Porter’s Five Forces are used to evaluate the level of competition and the market position of a business organization. These forces are very useful for identifying the strengths, power, competitive advantages, and weakness of business firms.  Micheli & Manzoni (2017) stated that this model is also useful for identifying the competitive position and the profitability of the business firms. This model is used to determine the power of buyers and suppliers by which firms can take better-advanced decisions to overcome these challenges (Greenley & Lings, 2015). This model is not a difficult model and every organization can use it to identify the level of competition and market position of them. This model also helps to identify better alternative strategic plans for the business firms to get the opportunities (Porter, 2017). Hunger (2017) suggested that this analysis helps to create a roadmap for the business organization to use opportunities properly and reduces the threats very carefully…………

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