Comparing products by using Porter's Force Model

Comparing products by using Porter’s competitive force model.

Porter’s competitive force model was created by Michael Porter’s since 1985. Nowadays, many big companies using this model to develop strategies in order to improved their business and increased their competitive edge. There are 5 major forces that can become harm to the company listed below :

 The threat of entry of new competitor.
 The bargaining power of suppliers.
 The bargaining suppliers of customers(buyers).
 The threat of substitute products or services.
 The rivalry among existing firms in the industry.

SPORTS PRODUCTS IN MALAYSIA.

As we know, nowadays there are many of sports attire and item such as sport shoes, football attire, t-shirts and so on. Our country are the most of asian country that produced and imported many of sports product for daily use and recreation purposes.

Refer to the first model of Porter’s competitive force model that is the threat of entry of new competitor. Malaysia also produced their own sports products brand such as Kronos, Power(BATA), Asadi and others. But, today people more trusted to other imported products such as Nike, Adidas, Umbro, Diadora and so on. This scenario happens because of the strategies of the imported products in order to sale and commercial their products. Besides, imported products have very high quality of products produce and the name of the products are famous around the world. Even our local products prices are cheaper than imported products, customers still choosed imported products because of the brand, quality and also their design is up to date.

Next, the bargaining power of suppliers also give a big impact in business matters. Today, we as a buyers can purchased a imported product thru online. Besides that, by using online services we can negotiate the prices of the products using auction sites, the quality of the product also guarantee by the company and the items we buy will delivered shortly using courier. On the other hand, our local products only can buy at shopping complex in this country but not around the world. People also will choosed their own taste and favorites products with a good quality and reasonable items sales.

Another model of Porter’s competitive force model is the bargaining power of customers (buyers). As we know, in the modern life now we as a buyers or customers can buy the imported products more easier than local products because of the suppliers in this country. There are many of sub-suppliers for imported product such as aL-iKhSaN sports,Atheletic sports and so on. But, our local sports products only sells and supplies by selected company in Malaysia for example BATA (M). Besides, customers have many choices to choosed and purchased the imported sports products because the imported products offer many types of sports items compared to local sports products.

The fourth Porter’s competitive force model is the threat of substitute of products or services. Nowadays, new technologies creates substitute products rapidly. People will buy the latest technologies and products produced. For example, today most of people will buy a PVC sandals rather than Canvas sandals it’s because of the quality and multipurpose uses. Besides, the PVC products is lighter than canvas because of the materials used. Other than that, the designed of the sports items give a big advantages to a sports company to gained profit. Customers will choosed a modern style designed and followed the trends aroung the world. Imported products designed is up to date but, our local products only focused to the trends in Malaysia only not globally.

Lastly, the competitive force models produced by Potter’s is the rivalry among existing firms in the industry. Today, in the world there are many of company and products produced. Some of the famous name of products is Nike, Adidas, Umbro, Diadora, and so on. So, because of the name of this products was very famous aroung the world it may effect our local products sales. People would like to choosed the top and famous sports items compared to our local sports items. And because of this phenomenon, it will compete among sports company in this country.

Some people have claimed that, nowadays there are too many imitations of imported products such as Nike, Adidas and others in this country. People have to be alerted if want to purchased the imported sports products because of this cases. So, it shows that our local sports products is more secure to buy because its do not have non-original products sales in this country.

In brief, as a big company in this industry we have to makes a strategies by using this five Porter’s competitive force model. This model will helps and shows you the best way to become a very successful company in the world.