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Strategic Management Porters Five Forces: Case Analysis Essay Example

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Strategic Management Porters Five Forces: Case Analysis

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Strategic Management Porters Five Forces: Case Analysis. The number of buyers or customers that the company has determined their ability to control the prices. On the occasion where a company has very many buyers of their commodities, one buyer or a group of buyers is insignificant and cannot control the price at which that company sells its products. On the other hand, when a company produces products with few buyers or is over-dependent on one customer or group of customer, the customers can determine prices.The Carrefour Company produces products that are used by all people each day. Therefore, they have a large pool of customers, and hence, the customers do not can control the costs that the company fixes for its goods. Carrefour has expanded and operates in different countries, and this provides it with many customers for their products.

The company, therefore, has no threat from buyer power. The company also enjoys customer loyalty since they have been in operation for many years, and this reduces the threat of buyer power.Competitive rivalry refers to the levels of competition that the company is let out to in the market by the capability and dominance of the competitors. Competitors of any business are always working hard to make their products enchanting and more satisfying. In the occasion where the competitors of the company are stronger, suppliers and buyers tend to shift to the stronger side. Such a situation leads to a weaker competitor experiencing reduced profits and may run out of business and close down. Then again, if a company is stronger in competition, it will enjoy more sales and more often gain customer and supplier loyalty.Carrefour Company operates in a business environment with very many competitors. Over the last years, the company has experienced low customer satisfaction rates, which have led to reduced sales. Low customer satisfaction rates have occurred since the competitor offer better services. Their competitors have ensured that their brands are well developed, and it has contributed to Carrefour’s weak stance in Asia and the Middle East. Strategic Management Porters Five Forces: Case Analysis.

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Bibliography

Porter, M. E. 2008. “The five competitive forces that shape strategy.” Harvard Business School Publishing. Boston, MA
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