Scribd Logo
Upload

Welcome to Scribd!

  • 55 views

    Assignment Submission Cover Sheet: International Islamic University, Islamabad

    Uploaded by

    ruqayya muhammed
    The document is an assignment submission cover sheet and analysis of Porter's 5 Forces model for Tianxi Company in the household appliances industry. It discusses each of the 5 forces: 1) Bargaining power of suppliers is low since Tianxi has control over suppliers. 2) Bargaining power of buyers is high as buyers demand high quality, low cost products. 3) Intensity of rivalry is high due to competition from global and local brands. 4) Threat of new entry is low because of high costs and established brands. 5) Threat of substitutes is low as there are no close substitutes for household appliances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Assignment Submission Cover Sheet: International Islamic University, Islamabad

    Uploaded by

    ruqayya muhammed
    55 views5 pages
    The document is an assignment submission cover sheet and analysis of Porter's 5 Forces model for Tianxi Company in the household appliances industry. It discusses each of the 5 forces: 1) Bargaining power of suppliers is low since Tianxi has control over suppliers. 2) Bargaining power of buyers is high as buyers demand high quality, low cost products. 3) Intensity of rivalry is high due to competition from global and local brands. 4) Threat of new entry is low because of high costs and established brands. 5) Threat of substitutes is low as there are no close substitutes for household appliances.

    Original Description:

    model

    Original Title

    Ruqayya (5194) Model

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document is an assignment submission cover sheet and analysis of Porter's 5 Forces model for Tianxi Company in the household appliances industry. It discusses each of the 5 forces: 1) Bargaining power of suppliers is low since Tianxi has control over suppliers. 2) Bargaining power of buyers is high as buyers demand high quality, low cost products. 3) Intensity of rivalry is high due to competition from global and local brands. 4) Threat of new entry is low because of high costs and established brands. 5) Threat of substitutes is low as there are no close substitutes for household appliances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    55 views5 pages

    Assignment Submission Cover Sheet: International Islamic University, Islamabad

    Uploaded by

    ruqayya muhammed
    The document is an assignment submission cover sheet and analysis of Porter's 5 Forces model for Tianxi Company in the household appliances industry. It discusses each of the 5 forces: 1) Bargaining power of suppliers is low since Tianxi has control over suppliers. 2) Bargaining power of buyers is high as buyers demand high quality, low cost products. 3) Intensity of rivalry is high due to competition from global and local brands. 4) Threat of new entry is low because of high costs and established brands. 5) Threat of substitutes is low as there are no close substitutes for household appliances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    ASSIGNMENT SUBMISSION COVER SHEET

    INTERNATIONAL ISLAMIC UNIVERSITY, ISLAMABAD

    Course Name INTERNATIONAL BUSINESS AND WTO

    Assignment PPSTER’S 5 FORCES MODEL

    Submitted To DR HAMEEDA

    Student Name RUQAYYA MUHAMMED SALEEM (5194)

    Sem./Sec. Semester 7 BBA(38)

    Date 03-MAY-2021

    Total Pages (incl. Cover Sheet) 04

    Marks / Grade
    POST SUBMISSION INFORMATION

    Professor’s Comments
    POSTER’S 5 FORCES MODEL (TIANXI
    COMAPANY)

    BARGAINING POWER OF SUPPLIERS


    Most of the suppliers of household appliances are either located in Asia or some
    central European countries. Considering that more and more companies tend to
    find overseas suppliers to lower the production cost, the bargaining power of
    suppliers is also quite low since their products are not unique and the switching
    cost is quite low.

    As one of the largest home appliance producers in Asia, TAINXI has quite some
    control over suppliers which enables them to further lower down the bargaining
    power of suppliers. A vertically integrated company which engages in the design,
    manufacture, marketing, distribution, and after sales services of its own products,
    TAINXI is able to exercise strict control over the quality of the supplies and
    services provided.

    POWER OF BUYERS
    Power of buyers is very high, not only final consumers drives the quality and
    innovation, also the middle-men and builders can and do exercise pressure on the
    supplying firms to provide energy efficient, environmentally safe and high quality
    products in low cost. Buyers want to place only high quality and well-known
    brands in their stores.
    THREAT OF SUBSTITUTE PRODUCT
    Threat of substitute products is very high, there are not much substitutes
    available. Even if they are (e.g. Laundromats, fan industry) they are not powerful.

    According to the Porter's five forces analysis, TAINXI appliance industry is


    moderately favorable or attractive. New player can enter the market and enjoy
    profits.

    There is basically no substitute to household appliances as people by any means


    needs to cook, store fresh food or use the fridge functions. There are certain
    products which have begun to have substitutes, such as computer and internet TV
    becomes more and more popular among the young generation, however, it won’t
    happen overnight that computer and internet can replace TV as it requires high
    technological development in these areas which will take at least some years. To
    sum up, by applying Porter Five Forces Model, we can arrive at the conclusion
    that EU is one of the top markets for household appliances companies and
    customers exhibit a clear pattern of assumption that is more focused on quality,
    experience, and environmental protection.

    INTENSITY OF RIVALRY
    There are two types of competitors for TIANXI in the market, i.e. manufacturers of
    global brand such as (Electrolux, Siemens, GE, Merloni, Whirlpool, etc) and local
    brand companies (Brandt, Candy, Miele, etc). Both of them have their targeted
    clients and well-established reputation, though at different levels. The two
    dominant parties have been in the market place for very long time, and
    developed their own loyal customers, therefore, the rivalry among existing
    Prepared by TIANXI. It would be very difficult for TIANXI to win the market share
    from these competitors unless TIANXI can identify unique positioning in the
    market and appeal to the clients.

    THRETA OF NEW ENTRY


    Threat of new entrants is very high because heavy investment and sophisticated
    R&D is required in appliance market and industry is matured with intense
    competition, profitability is not lucrative for the new entrants. Brand loyalty also
    plays an important role and big distribution network is required. Due to the
    intense competition existing players will retaliate the new entrance. There are
    many threats for new entrance to enter the home appliance industry.

    The barriers to new entrants in home appliance industry are pretty high not only
    because this sector is a typically capital intensive one but also due to the high
    customer loyalty with brand preferences, therefore, the threat of entry is quite
    low. Given that there are already multiple global brand products wrestling with
    local products in household appliances market, the entry of a new brand such as
    TIANXI into this market can prove to be extremely difficult. However, TIANXI’s
    strength, as will be discussed later in this paper, in quality products, innovation,
    first-class services, and environmental protection feature will turn out to be
    advantages that help the company to crack into the market.

    POSTER’S 5 FORCES ANALYSIS


    MODEL
    BARGAINING POWER OF  exercise strict control over the
    SUPPLIER quality
    (LOW)
     lower the production cost
     large OEM in European market
    BARGAINING POWER OF BUYER  want to place only high quality
    (HIGH)
     the consumers are very price
    sensitive
    INTENSITY OF RIVALRY  global and local brands as
    (HIGH) competitors
    THREATS OF NEW ENTRIES  Marketplace culture
    (LOW)
     High capital investment
    THREATS OF SUBSTITUES  basically no substitute to
    (HIGH) household appliances
     EU is one of the top markets for
    household appliances companies

    You might also like