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Porter’s Five Forces Analysis Essay Writers
The analysis of the threats of new substitutes is a crucial step in your porter’s five forces analysis essay or research paper. The likelihood of customers switching to alternative products or services determines the type of market competition. For example, an enhanced advertising of organic fruit juice might decrease the market share for soft drinks such Pepsi and Coke. Your porter’s five forces analysis essay should discuss the factors that are likely to increase the threats of new substitutes in the marketplace. The ease of product substitution, prices of substitutes and relative standard of products determine the inclination of buyers to substitute products. The threat of substitution is proportional to the availability of products offering the same satisfaction as the traditional product. The essay or research paper on porter’s five forces analysis should provide valid examples to demonstrate the effects of substitute products and services on the profitability of the firms in the industry. The availability of standard substitute products limits the price that firms can charge for their products.
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An excellent example of the threat of substitute products is the availability of different sources of news other than the traditional newspaper. The consumer has the choice of reading the news online or watching different T.V channels. The availability of several online and T.V news channels offers reliable substitutes for print newspapers. The willingness of Generation Y to switch to other sources of news has caused a significant decline in the sale of print newspapers. The profitability of an organization in an industry with a significant threat of substitute products and services will depend on the organization’s ability to offer improved and reasonably priced products. The organization should adopt competent production and marketing models to realize enhanced perception of product differentiation among its customers.
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