Porter’s Five Forces Framework

Is a tool for analyzing the competition of a business. It draws from industrial organization (IO)
economics to derive five forces that determine the competitive intensity and, therefore, the
attractiveness (or lack of it) of an industry in terms of its profitability.

The five forces are:

1.Supplier power

2.Buyer power

3.Competitive rivalry

4.Threat of substitution

5.Threat of new entry

 Power of Suppliers

This force addresses how easily suppliers can drive up the cost of inputs. It is affected by the
number of suppliers of key inputs of a good or service, how unique these inputs are, and how
much it would cost a company to switch from one supplier to another. The fewer the number of
suppliers, and the more a company depends upon a supplier, the more power a supplier holds to
drive up input costs and push for advantage in trade.

 Power of Customers

This specifically deals with the ability that customers have to drive prices down. It is affected by
how many buyers or customers a company has, how significant each customer is, and how much
it would cost a company to find new customers or markets for its output. A smaller and more
powerful client base, means that each customer has more power to negotiate for lower prices and
better deals. A company that has many, smaller, independent customers will have an easier time
charging higher prices to increase profitability.

 Competitive Rivalry

Competitive rivalry is a measure of the extent of competition among existing firms. Intense rivalry
can limit profits and lead to competitive moves including price cutting, increased advertising
expenditures, or spending on service/product improvements and innovation.

 Threat of Substitution

Substitute goods or services that can be used in place of a company's products or services pose
a threat. Companies that produce goods or services for which there are no close substitutes will
have more power to increase prices and lock in favorable terms. When close substitutes are
available, customers will have the option to forgo buying a company's product, and a company's
power can be weakened.



 Threat of New entrance

Refers to the threat new competitors pose to existing competitors in an industry. Therefore,
a profitable industry will attract more competitors looking to achieve profits. If it is easy for these
new entrants to enter the market ,if entry barriers are low then this poses a threat to the firms
already competing in that market. More competition or increased production capacity without
concurrent increase in consumer demand means less profit to go around.
A sole proprietorship, also known as the sole trader, individual
entrepreneurship or proprietorship, is a type of enterprise that is owned and run by
one person and in which there is no legal distinction between the owner and
the business entity. A sole trader does not necessarily work 'alone'—it is possible for the
sole trader to employ other people.
The sole trader receives all profits (subject to taxation specific to the business) and
has unlimited responsibility for all losses and debts. Every asset of the business is
owned by the proprietor and all debts of the business are the proprietor's. It is a "sole"
proprietorship in contrast with partnerships (which have at least two owners).
A sole proprietor may use a trade name or business name other than their or its legal
name. They may have to legally trademark their business name if it differs from their
own legal name, the process varying depending upon country of residence.

Sole Proprietorships Are Easy to Establish and Manage

Sole Proprietorship examples include small businesses, such as a single person art
studio, a local grocery, or an IT consultation service. The moment you start offering
goods and services to others, you form a Sole Proprietorship. It's that simple. Legally,
there is no distinction between you and your business. While there are no filings
necessary to register your company, you will have to apply with the Internal Revenue
Service to obtain an Employee Identification Number if you set up a retirement plan or
start hiring employees. Otherwise your Social Security number can be used instead. Of
course, you will also have to possess all the necessary local and state permits and
licenses related to the business you operate, though they are not necessary for forming
a Sole Proprietorship, just to make sure you are doing business legally.
SWOT ANALYSIS

S- TRENGTH

W-EAKNESSES

OPPORTUNITIES

T-HREATS

I. STRENGTH
• The shop located in a local community.

• Far from the city center ,the bills for renting is much cheaper so the cost of sales could
be reduced.

• There is a 24/7 fitness center around the shop , lots of people have the habit getting
some fruits to gain the nutrition after gym.

• The competition is not fierce, as there is not the same kind of business nearby.

• The shop specialized in fruits and vegetable,we are more professional handling the
operating process.

• We have got much more kinds of product comparing with shopping center.

II. WEAKNESSES
• 1. We are new business man we need to manage large funds to start our
business. It cost a lot to start our business, we have to buy the products and fill
our shop. It cost us every expensive. It cost every much in setting up a new
business.
2. Finance remains the main weak point for new business man. As it very
difficult to borrow money from banks. We have met many recommendations and
sign-out much legal paper to get loan. We have to take a loan to set up business.
So we have to think about the installment of loan payment and interest of loan.
3. We get very less discount on wholesale. As vegetables and fruits have very
 less margin in their prices. The large stores by like shopping centre effect the
sale of product.

III. OPPORTUNITY

• We plan to apply the pick up and delivery service for individual customer.

• The customer can not only order goods through the phone but also logging on our
website. In the same time we can give them a free quotation in order to meet their
needs.

• In the present ,we mainly order the fruits and vegetables from the suppliers. We have to
spare more budget into it such as the cost of goods the fees of delivery .Besides it
probably takes a long while to wait for the arrival of goods. In the future, it is highly
possible for us to open our own farm. On basis of that, we can not only reduce the cost
of sales ,but also the quality of goods could be guaranteed.

IV. THREATS
• 1. Competition has increased a lot in market, so it remains a doubt in mind of every
new business man that his business wills success or not.

• 2. Vegetables are seasonable, as in every season, the vegetables are changed, so it is

very difficult to bring a huge variety of products in store.

• 3. Vegetable and fruit business is highly depends on whether as if there is any change in
weather it effects the production of vegetable and fruits.

• 4. Risky especially when we have disaster such as drought, hard storms and floods.
Prices of vegetables and fruits always vary with growth of vegetables and fruits, if there
is less production then there are more prices of products, if there is more production
then there are fewer prices of products.

• 5. In this condition people change their mind for buying the products and also quantity
of products.
 GROUP 1
Swot analysis,
Porter’s five Forces Framework and
sole proprietorship

Members: grade 12
ROMAGOSA,ERICAMAE abm-persistent

SHAIRA MIANO submitted to:

RACHEL GONZALES Sir.pilla,jonathan

NICOLE LAGYAP

ACE ANDRES

DARWIN MENDEZ

KENNETH NATIVIDAD

JOEY MORILLA
 Fruits and vagetables

Business plan
MISSION AND VISION STATEMENT

OUR MISSION

 To exceed customer expectations in the processing, distribution and marketing of

safe, tasty and high-quality fruit and vegetable products from seed to shelf

 To base our operations on values, commitment, experience and knowledge of

our people, partners and investors

 To create, control and monitor the quality and origin of the crops by constant
value addition to the farmers and dealing with presented by the current market
scenarios the challenges

OUR VISION

 To be a globally impacting food processing company enriching lives with

innovation, integrity and superiority