Porter of Hul

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Porter’s Five Forces Model | TNMG: The Next Marketing Guru

Porter’s Five Forces Model is one of the most popular frameworks in management. This framework is widely used across management disciplines specially so in case of Strategy and Marketing. . This is one model that has brought strategic management in the heart of management agenda. Porter’s Five Forces Model helps analyze competitive scenario in an industry. This framework helps determine industry profitability and can be used as one of the inputs while deciding to enter an industry. This famous framework was contributed by Michael E. Porter. The basic framework is as shown in the diagram below.

So, the five forces that determine the industry profitability as per this framework are: Threat of New Entry, Buyer Power, Supplier Power, Threat of Substitution and Competitive Rivalry. There are various parameters which can be used to determine the nature of these forces. Each of the force is classified as low, medium or high depending on the nature of those parameters. The parameters used to measure nature of the forces are described in below diagram.




Porter’s Five Forces Model | TNMG: The Next Marketing Guru

Ideal scenario to enter an industry is: Entry Barrier=High, Buyer Power=Low, Supplier Power=Low, Threat of Substitution=Low and Competitive Rivalry=Low to medium. Current players try to build high entry barriers to prohibit new comers from entering. Examples of high entry barrier – strong distribution channel of ITC in the Cigarette industry. Example of low Supplier Power – HUL getting long credit periods from suppliers. The best way to understand any theory is to use an example. So, we have done a basic analysis of Indian Cigarette Industry using Porter’s Five Forces Model. Please find the analysis in presentation format below.…...

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Hul Company


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...Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. Three of Porter's five forces refer to competition from external sources. The remainder are internal threats. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to...

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...Cuáles son las 5 fuerzas de PORTER? • Amenazas de los nuevos competidores • Rivalidad entre competidores • Poder de negociación de los clientes • Poder de negociación de los productos • Amenazas de productos y servicios sustitutos ¿Cómo interactúan unas con otras? Pienso que las 5 forman una liga que te va llevando una a la otra como consecuencia, formando una estructura de información que te lleva cada una ser complementada a la otra. ¿Porque las aerolíneas son una gran industria? Porque en realidad a pesar de que se menciona que está debajo de la lista de rentabilidad que se menciona, por ser menos rentables, pero las barrera de entrada son bajas por lo que incluso uno no tiene que comprar en si los aviones, los puede rentar, se puede comenzar con dos vuelos ya que no necesitas un comienzo rápido, y se menciona que es una tendencia de empresa, como algo moderno. ¿De qué manera puedes cuantificar esta evaluación? En base a variables que fundamenten cada fuerza y se les puede asignar porcentajes los cuales al sumarlos te dé un resultado porcentual donde puedas entenderlo numéricamente. ¿Qué variables utilizarías para cada una de las fuerzas de PORTER? • Amenazas de los nuevos competidores: variables referentes a barreras de entrada y acceso a canales de distribución. • Rivalidad entre competidores: todo lo referente a la industria en particular, como amenazas de proveedores, competidores, etc. • Poder de negociación de los clientes: se pueden utilizar......

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Hul- 4p

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...of Oxford, Oxford OX1 5NY, UK c Solvay Business School, University of Brussels (V.U.B.), Brussels, Belgium Abstract Globalization is very important for small economies such as Korea and Singapore. The single diamond model (Porter, 1990, The competitive advantage of nations) suggests some important determinants for a nation’s global competitiveness. However, this model is incomplete, mainly because it does not incorporate multinational activities. A new approach, the generalized double diamond model (Moon et al., 1995, in Research in global strategic management: Volume 5: Beyond the diamond) offers some important extensions to Porter’s original model. To test the validity of these two models this paper evaluates relevant data for both domestic and international variables in the case of Korea and Singapore. The results generally support the generalized double diamond model © 1998 Elsevier Science Ltd. All rights reserved. Keywords: International competitiveness; Double diamond; Porter’s single diamond; Korea; Singapore; Small open economies 1. Introduction In his famous book, The competitive advantage of nations, Porter (1990) studied eight developed countries and two newly industrialized countries (NICs). The latter two are Korea and Singapore. Porter is quite optimistic about the future of the Korean * Corresponding author. Tel.: (82-2) 880-8518; fax: (82-2) 886-6303; e-mail: cmoon@gias.snu.ac.kr 0969-5931/98/$19.00 © 1998 Elsevier Science Ltd. All rights reserved.......

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Fmcg: Hul

...Gineesh Jose MBA-B Roll No:1325 HINDUSTAN UNILEVER LIMITED CONTENTS Introduction  Products  Strengths & Weakness  Marketing Strategies  Facts  Growth Rates  Awards & Recognitions  Competitors  Recent News  Games  INTRODUCTION        Hindustan Vanaspathy Manufacturing Company (1931), Lever Brothers India Limited (1933) and United Traders Limited (1935) together formed Hindustan Lever Limited in November 1956. First foreign company to offer its 10% equity to the Indian public. Unilever owns 52% controlling share in HUL. Its headquartered in Mumbai and employs around 16,500 workers and contributes to indirect employment for over 52,000 people. Formal exports department was started in the year of 1962. Recognized by Govt. of India as Star Trading House in Exports by the year of 1992. By April 1993 TOMCO merged with the company. PRODUCTS PRODUCT CLASSIFICATION STRENGTHS & WEAKNESS Strengths: Strong brand name.  Portfolio, price quantity & variety products.  Innovative aspects.  Solid base of the company.  Corporate social responsibility.  Concept of Market Segmentation. Weakness: Local competitors in the rural market. MARKETING STRATEGIES Focuses on short supply chain for distribution.  Try to meet the every needs of every people everywhere.  Also uses vast and efficient selling channel.  Build segments and market for the future where Unilever has strong expertise.  Integrate economic, environment and social objectives with business......

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...Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organization. This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization’s current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes. Porter’s five forces of competitive position analysis: The five forces are: 1. Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each essential input, uniqueness of their product or service, relative size and strength of the supplier, and cost of switching from one supplier to another. 2. Buyer power. An assessment of how easy it is for buyers to drive prices down. This is driven by the number of buyers in the market, importance of each individual buyer to the organization, and cost to the buyer of......

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Hul Planning

...HUL moves from Rural to Urban India FMCG is an industry not built on product innovation like pharmaceuticals or user experience like the Tech. Industry. This is an industry where your product has to gain shelf space at the grocer where most of the people in a community go to replenish their daily needs. The regular grocers and the provision stores (Mom & Pop variety) are already accounted for and do not have much potential left in terms of increasing the current customer base. India is still predominantly agriculture driven economy and as a country 70% of its citizens dwell in the rural hinterland.Hindustan Lever in India (the Indian subsidiary of Unilever, now known as Hindustan Unilever)were the pioneers to practice the Bottom of the Pyramid.The concept by C.K.Prahallad emphasised on leveraging profit from rural India.Its mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.HUL reached its heights as it worked making tap the untapped in the rural India.Be it Nirma,Lifebuoy or sachets of sunsilk or name the product it was sold in kiosk in rural India and entailed high volume of profit.The wheel of economy is rotating and now the situation is other way round where in a weak monsoon is largely to blame for sluggish demand in rural India, which accounts for nearly half of HUL’s domestic sales.The current economic and political environment depicts that ......

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...competition. One way to answer those questions is by using Porter's Five Forces model. Originally developed by Harvard Business School's Michael E. Porter in 1979, the five forces model looks at five specific factors that help determine whether or not a business can be profitable, based on other businesses in the industry. "Understanding the competitive forces, and their underlying causes, reveals the roots of an industry's current profitability while providing a framework for anticipating and influencing competition (and profitability) over time," Porter wrote in a Harvard Business Review article. "A healthy industry structure should be as much a competitive concern to strategists as their company’s own position." According to Porter, the origin of profitability is identical regardless of industry. In that light, industry structure is what ultimately drives competition and profitability —not whether an industry produces a product or service, is emerging or mature, high-tech or low-tech, regulated or unregulated. "If the forces are intense, as they are in such industries as airlines, textiles, and hotels, almost no company earns attractive returns on investment," Porter wrote. "If the forces are benign, as they are in industries such as software, soft drinks, and toiletries, many companies are profitable." Understanding the Five Forces Porter regarded understanding both the competitive forces and the overall industry structure as crucial for effective strategic......

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...PORTER’S FIVE FORCES MODEL Porter identified five competitive forces that shape every single industry and market. These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry. It has become a frequently used tool for analyzing a company's industry structure and its corporate strategy. Factors associated with industry structure have been found to play a dominant role in the performance of many companies, with the exception of those that are its notable leaders or failures. As such, one needs to understand these factors at the outset before delving into the characteristics of a specific firm. Michael Porter, a leading authority on industry analysis, proposed a systematic means of analyzing the potential profitability of firms in an industry known as Porter’s “five forces” model. According to Porter, an industry’s overall profitability, which is the combined profits of all competitors, depends on five basic competitive forces. • Intensity of rivalry among incumbent firms • Threat of new competitors entering the industry • Threat of substitute products or services • Bargaining power of buyers • Bargaining power of suppliers Figure here shows the relationship between the different competitive forces. THREAT OF NEW ENTRANTS The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new......

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