Porter Five Forces Analysis free essay sample

The entrenched position of the Indian market leaders in IT industry like TCS, Infosys, Wipro, CTS, Tech Mahindra; The changing environment demands fresh thinking to gain the cutting edge advantage. This paper attempts to look at the various macro and micro environmental factors operating in the industry using. The model of strategic analysis by Michael Porter, i. e. to analyse the bargaining power of buyers and suppliers, the threat of new entrants, threat of substitutes, intensity of rivalry, impact of technological changes, growth and volatility of the market and the influence of government and regulatory interventions. These variables affecting the industry have been categorised as favourable or adverse depending on the influence on the profitability of the industry. Some strategic initiatives, which can be adopted, to leverage the favorable forces and prevent the adverse ones have been identified. This paper attempts to analyse the various macro and micro environmental factors operating in the industry to provide a basis for devising strategy. We will write a custom essay sample on Porter Five Forces Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page IT INDUSTRY OVERVIEW INTRODUCTION India IT industry is one of the world’s successful information technology industries. Measured by the age of many industries, the IT industry in India is still in its infancy. Yet its growth and development has caught the attention of the world so much so that India is now being identified as the major powerhouse for incremental development of computer software. The reason for this attention is not the actual size of the industry but its rapid growth rate over the nineties and subsequent decade. It has grown from US $ 150million (source: NASSCOM) in 1991-92 to US $ 64 billion in year 2008. The industry’s contribution to India’s GDP has grown significantly from 1. % in 1999-2000 to around 5% in FY06, and has been estimated to cross 5. 5% in FY2010. The sector has been growing at an annual rate of 28% per annum since FY01. The Indian IT industry can be mainly categorised into following sectors IT services, IT enabled services and BPO, Research Development, Software Product and Hardware. IT INDUSTRY PERFORMANCE The size of the Indian IT industry, according to NASSCOM, is US$ 64 billion as of year 2008. It has been growing with an annual rate of 28% since 2001. The Indian IT industry can be broadly divided into two markets: domestic market and exports market. The elements of each of the above forces and the extent and /or effect of each element in the context of the IT industry have been analysed and enumerated below. Porter’s framework, however, does not address three important variables variables-Government and Regulatory Interventions, Technological Changes, and Growth and Volatility of Market Demand. These variables have been included in the model proposed by George Day (Day, 1990), which evolved from Porter’s model and have been analysed in this study study. Aparna Parthasarathy –PGXPM 05-Term5 Page 5 Strategic Management – Industry Analysis Assignment 2009 Â  Degree of rivalry denotes the intensity of competition within the industry. As the industry is still in its growth stage, there is enough room for expansion for existing players and new entrants. With the entry of many multinational companies (MNC) are opening their operations in India to leverage the low cost advantage provided by India, has increased the completion ratio (CR) of the industry. Also as there is no huge capital investment required to start a new company, the industry see a very large numbers of small and medium-size companies operating in a niche market. Presence of such large number of players has made the industry as one of the most competitive industry in the market. : High Commoditized Offerings low-cost, little differentiation high industry growth Strong Competitors Few number of large companies Numerous or equally balanced competitors Lack of differentiation or switching costs Capacity augmented in large increments High strategic stakes EXHIBIT: Â  Aparna Parthasarathy –PGXPM 05-Term5 Page 6 Strategic Management – Industry Analysis Assignment 2009 Â  We choose the top 3 IT companies from above pie chart for the analysis. Predicting what will come in an industry that evolves on an almost daily basis is a thankless and almost futile task. Things change at such a rapid rate, and many of the technologies are so fluid, that a shift in direction can occur in weeks rather than months. If we think that todays Internet and e-commerce opportunities are technically advanced, we have not seen anything yet. Not only will the existing uses of the Internet get more and more advanced, but new ways will be found to exploit the opportunities it provides. The delivery of these services will not just be dependant on new formats and programming, but also on the mediums that deliver them. For this to happen, certain changes will need to take place, not just technological, but legal as well. Protection of consumers needs to be examined, as well as

The Ibo Tribe essays

The Ibo Tribe essays The Ibos, which can also be called the Igbos, live in Iboland in Nigeria. They are one of the three major ethnic groups in Nigeria. Because they lived in the intense heat of the tropical climate they were required to wear relatively loose clothing. Young boys and girls wore very little or no clothing until they reach puberty. A few of the materials that were used to make their clothing were lace, jacquard, adire, tie dye, Ankara, and many other kinds of fabrics. Women used to wear loose neck blouses, usually long enough to go a little past the waist. Their iro (a skirt), looked like a plain sheet, and was wrapped around the waist and folded in a way so it would stay in place. The women also wore a gele which is a headpiece that looked like a sheet and was folded or tied in a variety of ways on the head. Women always wore unique jewelry with their outfits. The men wore clothes that looked very similar to the womens. They wore loose neck shirts that were usually long enough to go half way down their thighs. They also wore a filq, which is a round cap that was worn on the head. The history of women in the Ibo society of Nigeria contains two conflicting images. One is of the vibrant, fearless pre-colonial woman who knew herself and her worth and often claimed to be equal with the men in the community. The other is of the subordinate, confused, but still active, modern woman struggling to define herself in an ever-changing world. According to people who have visited and talked to the women of the Ibo tribe, the women are strong, independent-minded people. Even though they used to be beaten often they still took part in the economic, religious, and political lives of their communities. The women in the Ibo community went through many hard times, but they were still very strong women. The Ibos, like people in most African societies, were polytheists. They believed in and worshiped many gods. They believed that there are three le...

Keeping the Air Flair Virgin Blue Essay Example | Topics and Well Written Essays - 1500 words

Keeping the Air Flair Virgin Blue - Essay Example The various value additions to the core competencies of the airlines facilitate better response and provide the firm with necessary differentiating elements to gain leverage against the new entrants and other competitors.  The businesses across the regions have become highly competitive because the technology and rapid globalization have significantly altered the dynamics of business across the globe. Strategic marketing plans have become the crucial part of promoting products and services of an organization because they involve development and execution of goal oriented procedures to deliver value to the customers. Hence, to maintain competitive advantage, Virgin Blue Airlines needs to identify and analyze factors so as to meet the challenges of fast changing business environment.  Virgin Blue airline is one of the leading airlines that are facing stiff competition from other low-cost airlines. In the cutthroat environment of competitive business, the company needs to evolve the innovative business strategy to gain leverage over its competitors. The company has adopted creative communication strategy to promote the changes. The price war amongst the various airlines has significantly impacted the performance outcome of Virgin Blue. It also faces challenges from the rising cost due to inflationary trend and competition from new entrants in the industry. Thus, the highly competitive environment of global business has forced the Virgin to evolve new business strategies. The company has adopted more aggressive communication strategy to promote its strategic goals and value added product and services.  Virgin blue has realized the futility of entering into the price war and instead decided to change its business strategy to maintain its market position. It has adopted best-cost strategy that encompasses competitive pricing with distinct differentiating elements which would make it attractive to the customers. In a fiercely competitive business environment whe n the global economy is under tremendous pressure.