Porter's five forces models Essay Example | Topics and Well Written Essays - 750 words

Porter's five forces models - Essay Example Porter`s five competitive forces include the bargaining power of buyers, the bargaining power of suppliers, threat of new entrants, potential substitute products and the level or extent of rivalry among the competitors. The model of five forces can also be used to analyze the bread making industry of the UK (Daft, R. et al 1991). The bread making industry of UK is one of the largest markets of the entire food industry and is worth approximately ?3.4 billion. The UK baking industry is divided into three sectors, large plant bakers which control 78% of the market, the in-store bakeries produce around 17% of bread and the master bakers or the craft bakers produce the remaining which is 7% of the bread produces in UK. These three sectors of the industry are competitive and there is competition within each of these sectors as well which results in a high level of competition in the entire bread making industry of UK. The large plant bakers, for example, include three large plant manufactu res and the largest of these is the Warburtons and together all of these control almost 3/4th of the large plant bakery sector. ... The three main manufactures of bread in UK are Premier foods (Hovis), Allied Bakeries (Kingsmill) and the largest producer, Warburtons. These companies produce 80% of the bread sold in UK and therefore, the level of competition between these industries is also high as they compete to cater to the larger portion of bread market in UK. Another force is threat of substitute products which is also high in this industry. According to the Federation of Bakers, everyday almost 11 million loaves of bread are sold in UK with a total volume of fewer than 4 billion units with a variety of almost 200 different bread products available for the consumers. Therefore, there are a lot of substitute products available for the consumers of this market. As far as the bargaining power of suppliers is concerned, most of the bread sold in this market of UK is produced by local or domestic companies. As there are a number of dominant suppliers in the market (Premier foods, Allied Bakeries, Warburtons), they have a certain level of power over the market as together they control more than half of the market. They can exercise this power by collaborating and dividing the market amongst themselves. As a result, they could even stop new companies to enter the market and could even set prices to earn high profits. Therefore, it is quite difficult for new companies to enter this industry as the market share of the industry has already controlled by the three dominant suppliers. As a result, new entrants would have a limited margin for expansion. Also that they might not be able to compete with these dominant suppliers as they already have positioned themselves

Principle of Inf. Systeam theory and pratice Essay - 1

Principle of Inf. Systeam theory and pratice - Essay Example As Sysco is a highly decentralized company, with around 100 operating companies and more than 4500 employees, the main obstacle it will face is in convincing these major companies to adopt and pay for the new BI system. Most of the operating companies will have intelligence systems already in place although they won’t be this technically advanced; they might not be willing to invest their finances in purchasing another intelligence system which will also lead to training costs. The magnitude of the project may cause other problems such as changing the mindset of the employees, maintaining standard and compatible hardware, and software and business procedures across many companies. Sysco would be one customer for Business Objects but one training program would not be applicable to it. As within the operating companies employees would have different levels of experience and exposure to different software’s. Employees in different operating companies might need different training programs. There might also be a difference in using the software, and so it will be imperative that all units load it with the same type of information to yield benefit. Sysco may also face difficulties in deciding the amount of software to buy. It will be cheaper to buy the entire software in one shot, but the board of directors and companies may not be willing to pay so much upfront immediately. While implementing the new BI system, other obstacles might be faced such as resistance to change, improper use of software and lack of managerial support. Sysco’s previous efforts in overhauling the information systems included ERP and data warehousing. Both these efforts brought in line the data of the various companies but they focused on past data and generating historical reports. Sysco needs a system that will predict future trends while analyzing the data