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1、Five Disciplines of Management Quality and AbilityInsight into the General Trend of the Environment():Porters Five Forces Model for Competitive Analysis1.2A friend of mine opened a fast food restaurant on the fifth floor of an office building in Changsha.At first,it ran well,but shortly after openin
2、g,there opened another fast food restaurant next to it and a hot-pot restaurant on its opposite.Have A Think My friend thought,in addition to these competitors,it seems there are many other competitors,such as a food convenience store in a supermarket on the first floor,and Meituan and Elema takeawa
3、y that runs in and out everyday.Also,the office staff took lunch,and the clothing store on the fourth floor of the office building has been badly managed,it may be closed and changed into a food court.After all these thoughts,my friend felt full of competition everywhere.Question:what aspects should
4、 we analyze the competitive pattern faced by this fast food restaurant?Have A Think Five Forces Model was developed by Professor Michael Porter of Harvard Business School in 1979,and it is widely used in industry analysis and company strategic research.Five Forces Model Five Forces Model The capabil
5、ities of existing competitors in the industry.Bargaining power of customers.Bargaining power of suppliers.Threats of substitute products.The entry ability of potential competitors.Five Forces Model Who are our main competitors？The strength of competitors.The capabilities of existing competitors in t
6、he industry1.Acquisition of competitors junk2.Buy competitors products and analyze them3.Anonymous visit to competitors factories4.Record competitors shipments at ports or train stations5.Take photos of competitors from the air and study them6.Analyze competitor recruitment contracts7.Analyze compet
7、itor recruitment advertisements8.Ask customers or distributors about the sales of competitor products9.Send someone to participate in the operation of competitors or the operation of major customers10.Understand competitor suppliers to understand their production11.Bargaining as a customer to unders
8、tand the price level of competitors12.Talk to competitor customers for intelligence13.Buy off the previous managers of the competitor14.Learn about the situation by consulting staff visiting competitors factories15.Buying out employees of competitors16.Contact employees of competitors with fake recr
9、uitment17.Send technical personnel to participate in industry technical conferences to understand the technical information of competitors18.Buy off those who are not treated well by competitors or who contradict their main leaders18 Ways of competitors survey Potential competitors:those who are not
10、 currently in the same industry or market，but may enter in your industry or market as competitors.The entry ability of potential competitors Industry threshold In the past：there is an industry threshold from one industry to a new industry.Now:the industry threshold is getting lower and we may face m
11、ore and more potential competitors.The entry ability of potential competitors In the past,China Mobile,China Telecom and China Unicom regarded each other as competitors.Today,they found out the biggest competitor does not come from within the industry,but from some cross-border competition outside t
12、he industry.Today their biggest competitors is Tencent.The entry ability of potential competitorsTencentRegarded each other as competitors Today s top mobile phone manufacturers are Apple,Samsung,and Huawei.They do not make mobile phones in the past.The previous top manufacturers of mobile phones ar
13、e Motorola,Ericsson and Nokiaare.But they gone today.Therefore,We must attach great importance to the analysis of potential competitors.The entry ability of potential competitors MP3 players were widely popular 10 years ago,almost everyone hold one on campus.But recently,the capacity of smart phone
14、has been increasing,the network speed is getting faster,and phone data is getting cheaper.So online play on the smart phone completely replaced the MP3 player.The threats of substitute productsMP3 playerSmart phone Possibility of companies looking for other supply channels Possibility of backward in
15、tegration Possibility of supplier forward integration.Bargaining power of suppliers On April 19,2018,U.S.completely bans China ZTE Corporation.U.S.companies are prohibited from exporting telecommunication components to ZTE Corporation.Its just because ZTE Corporation fully relies on US suppliers for
16、 chip supply,ZTE is in a very disadvantaged position when competing or negotiating with suppliers.Bargaining power of suppliers Purchase amount How many purchase channels Possibility of backward integration of customersBargaining power of customers Now many people go to physical stores,just to exper
17、ience what you want to buy,not for really shopping.After the physical store experience,they order online.Because there are many purchase channels that customers can choose,it increase the customers bargaining power.Bargaining power of customersOrder online Experience in physical stores What aspects
18、should we analyze the competitive pattern faced by this fast food restaurant?Have a ThinkThe next-door fast food restaurant,the opposite hot pot restaurant,and takeaways that run in and out every day,all of these are your direct competitors.Next-door fast food restaurantOpposite hot pot restaurantTa
19、keawaysThe capabilities of existing competitors in the industry The clothing store be closedThe entry ability of potential competitors and changed to Food court The clothing store on the fourth floor may be closed and changed into a food court,this is the potential competitor you might face.Brown-ba
20、ggerSupermarket food The most typical substitute product is the lunch that the office employees bring and the food in the supermarket,etc.Threats of substitute products The main business is fast food.If their ingredients are sourced from one of the largest suppliers,then this supplier may have serve
21、d hundreds of restaurants at the same time,then the fast food resturant basically have little bargaining power.Bargaining power of suppliers The administrative departments of some large companies in this office building may find several restaurants to negotiate to get a big discount for company empl
22、oyees.If this company has a lot of employees,then the customer has great bargaining power.A big discountGreat bargainingpowerBargaining power of customersHave A TryQuestion:Please put forward operational competitive strategy according to the competitive pattern faced by this fast food restaurant.Key to the question,please see Exchange and Discussion.THANK YOU!