Porter's 5 Forces Essay Example | Topics and Well Written Essays - 500 words

Porters 5 Forces - Essay ExampleThe robotics application is experiencing growth year after year and the industrial robot application has become more demanding and conglomerate due to modernization and automation of the manufacturing processes. I will analyze each of the forces and the impact that may be experienced in regards to profitability of the robotics effort.Existing Competitors Within an industry, the rivalry among the competitors is countered through use new products, marketing and price discounting to be competitive. The robotic industry tends to be an oligopoly since it has a lot of rivals. The potential for product differentiation is eminent with much difference in motive, size, quality, service and features of the products.The Power of Buyers Consumers can capture more value by ensuring that they force the prices down and demand better quality at the industrys profitability expenses. The communicate buyer from the robotic industry is the automobile industry. Liter ally, the number of auto firms is small but they buy in bragging(a) quantities. In contrast to the automotive buyers, other buyers in other industries ar moderate in power. They are smaller, many and buy in smaller volumesThe Power of Suppliers Suppliers have great influence in an industry by changing higher prices, limiting the quality of services and shifting costs. The products provided do not ordinarily have substitution, but some tend to come up with techniques to realize differentiation of the products. The overall power of suppliers in the robotic industry tends to be weak.Threat to Entry New entrants into the market pose a scourge to the profit potential of an industry. According to Porter, the threat of entry in an industry is dependent on the raising of entry barriers. In addition, it is dependent on the reaction of the incumbents expected by the newcomers. When there are fewer entry barriers and little or no retaliation from the competing