'John Lewis' PORTERS FIVE SOURCES - Essay Example

Porter’s five forces is a tool used analytically to pinpoint the factors governing function of an industrial concept. In this regard, it paints a picture as to which forces are necessary in the overall profit making of the industry in question. This comes about in accordance with the operation mechanisms of the corporation. The discussion herein portrays Porter’s five forces for John Lewis.Firms and the rivalry in their competitionThe firm operates in a highly competitive industry. This is governed by high quality products that come with cheap prices, complexity in their design just to mention but a few competences they come with.

This is in consequence encompassed in an exceedingly enormous market hare that has not stopped to grow due to continuous demand. Alongside such factors, there are current global trends that have totaled up to the crisis; this is the fact that the recent global recession has grossly affected the market. In effect this has seen other players advance based on their competitive edge over the company. This has stiffened the competition and it is evident in the market shares trend. However, the consumer’s behavior in regards to priority over commodities may regulate this stiff competition.

This is a force that is considered strong.Buyers and their Bargaining powersDue to rigid competition, the force is intensified and hence strong. However, the corporation has within its structure stern measures to avert such competition. This includes high quality products which come with fair pricing strategy. In as much as there is a wide range of products that can be used as substitutes, this is however controlled by the competitive edge the current market has already established. This acts as one of the major strategies of the corporation for its expansion.

New Entrants and their threatsThis is one of the analytic forces which may be considered insignificant and hence weak. In this regard it is believed that the entry of a new force into the market may have meager consequences on te general effect to the market, especially if the forces already in the market are major ones. This is due to the fact that when there is a new force in the market, what they need is financial and human capital; sufficient enough to enable it grasp a considerable share of the market.

However, recent developments like the recession may be thought of as reverting the expected trends.Suppliers and their bargaining powersGenerally, this is a force that is considered weak and also limiting. In this regard, it means that suppliers are always consistent in their attempts to identify with big companies that have wide market shares. This is to ensure that they have a continual and trendy chain of supply that will also advocate for their reputation as regards the public perception.

At the same time, when this is networked, there can be opportunities secured for the supplier since they are always guaranteed of accessing the resources. In general, the suppliers hold on to their bargaining power by strengthening their networks with giant suppliers in the market space. In this sense, the company has an avenue for its marketing whereas the supplier translates this into their own employment.Threats of substitutesThis is generally considered as a weak force. In the context of the company, it is evident that there are commodities that are uniquely designed, high quality in nature and yet at a very low price.

This blend of customers’ tastes and financial ability makes the company unbeatable even by other fair substitutes. This is because they are not fair enough to match such a subsidy. This has brought to is a perfect brand perception in the market space.ReferencesPorter, M. (1980) Competitive Strategy, New York: Free Press. Porter, M. (1980) How Competition Forces Shape Strategy, Harvard Business Review, September-October, pp.137-145. Porter, M. (1998) Competfiveitive Strategy: Techniques for Analyzing Industries and Competitors, New York: Free Press.

Thelander, J. (2009) “ A standard approach to the world? IKEA in China”, International Journal of Quality and Service Sciences, Vol. 1 Iss: 2, pp. 199-219.Zentes, J., Morchett, D. & Schramm-Klein, H. (2007) Strategic Retail Management. Gabler, Wiesbaden.