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Porters Five Forces Model Case Study on

Introduction
The model of pure competition implies that riskadjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability.

Porter Five Forces Analysis

Porter Five Forces Analysis


1. Threat of new entrants: Economies of product differences Switching costs or sunk costs Capital requirements Expected retaliation Access to distribution Customer loyalty to established brands Absolute cost

Porter Five Forces Analysis


2.Threat of substitute products or services: Substandard product Quality depreciation Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market

Porter Five Forces Analysis


3. Bargaining power of customers (buyers): Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer switching costs relative to firm switching costs Buyer information availability Force down prices Availability of existing

Porter Five Forces Analysis


4. Bargaining power of suppliers: Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Strength of distribution channel Supplier concentration to firm concentration ratio Employee solidarity

Porter Five Forces Analysis


5. Intensity of competitive rivalry: Sustainable competitive advantage through innovation Competition between online and offline companies Level of advertising expense Powerful competitive strategy Firm concentration ratio

Case Study on UCC


Risk of new entry by potential competitors: Some time it may raise worse problem for the new one who want to join in the coaching centre industry, for teaching service.

UCC
Degree of Rivalry among establishes companies within an industry: there are so many coaching centers in the coaching industry. So here is tots of competition are exist.

UCC
The Bargaining Power of buyers: There are so many coaching centre in the coaching centre industry, and the student have many chances to admit any other coaching centre, so it may rise more powerful to the customer to do bargain with UCC coaching.

UCC
Bargaining Power of Suppliers: There are so many chances in which UCC create interaction with the students and gradient and in that situation UCC may demand their entire requirement.

UCC
Threat of Substitute Products: according the porters 5 forces, every organization always face a threatening position because there are so many scope to gain knowledge, like other coaching centre,

Conclusion As a whole, its a great implication that every industry has offer variety of companies with their products and services. In every industry there is much similarity between the products or services.

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