Porter's 5 forces Analysis applied on the business project - Assignment Example

Porters five forces analysis is carried out to figure out the intensity of competition and further on to determine the overall profitability level ina market. Porters five forces consists of five factors, namely bargaining power of suppliers, bargaining power of customers, threat of new entrants, threat of substitute products and competitive rivalry within an industry. Lets look each of these factors in turn.The suppliers power at Creative Minds is not really that significant. As there lot of suppliers of paint and canvas present in the UAE, our current supplier cannot play a significant role in affecting our profit margins.

In case the current suppliers change prices or block supply, we can always switch to other suppliers without really experiencing switching costs as such.The bargaining power of customers however is quiet significant here. As we know a of paints will be produced, and some might be of high quality and some just normal, so its clear that not all will sale. Those that will sale, their prices would be determined by their demand or how much people are willing to pay. Therefore in this given case, the customers power seems to play a significant role as it is completely up to them to decide what they want to buy and what not to.

There are no substitute products to paintings in the UAE market as such besides frames designed with the help of graphics manipulation. However, they cant really even be referred as a substitutes to Creative Minds paintings as the customers view these two medium of art differently and generally hand made painting are valued much more then ones drawn with the help of graphical softwares.Creative Minds dont really face a threat of new entrants since in the UAE market, the concept of helping physically disabled by getting them to make paintings is somewhat new.

Even if new entrants come in, the position of Creative Minds wont change as philanthropists, once they start to support a project like lets say Creative Minds, they dont really back out. And there are always new people coming in to help charities.Finally, there is no real competitive rivalry in this industry. Paintings are items whos price is determined by the buys and not by the free market mechanism. Competition would arise when suppliers set prices with regards to each other or play with non price items.

However, thats so not the case with the industry Creative Minds works in.