Nowadays, five forces by Michael Porter can be analyzed to when discussed about competition The following are the forces of port services industry especially in Indonesia based on Porter five model competition:
1. Threat of New Entrants - high
a. New entrants
Possibility of new entrants from more than 90 terminals operator licenses (BUP) as a consequence of the new shipping regulation No. 17/2008, some are granted to new players, including foreign investment, local governments and private companies
b. Entry barrier
Quite high due to high investment for port facilities
2. Rivalry Among Existing Companies - medium
a. Local competition, e.g. intra-port competition tbetween terminal operator at Tanjung Priok Port, the other example is competition
…show more content…
For Marketing Strategy using Porter five forced model by Michael Porter and Rethinking Marketing by Michael Porter and Hermawan Kartajaya Besides all those theories, in this literature review also make review to analyzed CRM, RFM, clustering method.
Indonesia is an archipelago that has the territorial waters of two-thirds of the total area. As one of the largest State-owned Enterprise in the field of port services in Indonesia, IPC has very varied customers. However, until now the IPC does not yet have a mapping of the customer, while the need for a vital relationship with the customer to be able to retain current customers and also to attract new market. Therefore, can do by customer profiling, the model used are RFM and K-Means Clustering.
These days, ports are being integrated into worldwide logistics chain. The value of services provided by regional ports increasingly transcends the interest of local users and benefits business and communities located beyond regional and national borders. Shipping and logistic company have forced to the port to adapt their need and
the position of market leader in this segment, dominating it by its organization, knowledge of the market and superior business model, focused specifically on online retailing. It is possible, however, that its competitors will invest heavily in the online segment and catch up with the market leader. Furthermore, such trends as slow food and ecological concerns may impact on the company's businesses model. They are particularly strong among the urban, well educated and affluent customers. It is dangerous because they are biggest spenders as well as enthusiastic users of internet and possibilities offered by it. Loosing them may disproportionately hurt company's profits and its market position.
I was once asked, if I thought the decision to reorganize of the state was right. Specially taking about creating the JDOC command structure, I said, “who else is going to do what we are doing?” The job of domestic operations has always been an additional duty, with very little time for planning or preparing for upcoming events. We are a reactive organization and I can see how that can kill us in the end. Our focus in the past 15 years has been on how prepare to go to war, which is our federal mission, and we have forgotten how to take care of our citizens in our own back yard which is our state mission. This reorganization has forced us to look to our left and right, and view the Oregon National Guard a one force both Army and Air. We as an organization are learning each other’s capabilities, strengths, weaknesses, and how we can better support each other in the
While Target is grappling with the immediate issue of eliminating “show-rooming” in their stores, the more pressing issue is, evolving their business model to fully exploit e-commerce to maintain a competitive advantage (Kinicki, 2013). Analysts estimated that customers would spend $1.4 trillion online in 2015 and yet, as late as 2011 e-commerce only accounted for approximately 2% of Target’s overall sells (Kinicki, 2013). Therefore, Target’s management team must create and execute a strategy that enables Target to adjust to changing customer purchasing patterns, significantly increase internet sells, and lower operational cost (Kinicki, 2013).
Duke Energy Corporation is the largest electric power holding company in the United States. They are a leading energy company focused on electric power and gas distribution operations, and other energy services in the Americas. These services include a growing portfolio of renewable energy assets. Duke Energy supplies and delivers energy to approximately 7.3 million U.S. customers (Fast Facts). Their market cap for 2014 was $57.5 billion with operating revenues of $23.9 billion (Fast Facts). Duke Energy's headquarters is located in Charlotte, NC. The total United States generation capacity owned by Duke Energy is 57,500 megawatts (Fast Facts). They employ more than 27,000 people. Duke Energy's operations are in North and South Carolina, Ohio, Florida and Indiana, representing a population of approximately 22 million people (Fast Facts). Duke Energy stock trades on the New York Stock Exchange under the symbol DUK.
Port planning, a process which is part and parcel of port development process can be done at a national or individual level (Demos, 2003,p.7). Port development on the other hand is a process that involves the creation of a totally new port or the expansion of an already existing one with the primary aim of increasing its capacity. In this paper, we provide a detailed port planning and business case analysis report for the establishment of a container terminal at LABIDCO DOC NUMBER 3, the former Alutrint dock. We are to assume a Greenfield site, with all approvals are in place and the terminal and adjacent land area being free of all encumbrances (See Figure 1 in the Appendix section). From a port planning and economic analysis perspective, we aim at achieving the following objectives ;
The five forces used to analyze the level of competition formulated by Porter are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services and rivalry among existing competitors (M. E. Porter, 2008). Two additional forces, proposed by Boehlje & Olson (2010), provide an external dynamic to Porter’s original five forces, namely technology and other drivers of change. In order to use the Porter five forces as an adequate backbone for describing the competition in our desired sector, we need thorough knowledge of the factors comprising these forces. We begin by providing an overview of general important factors used in recent literature.
Porter’s Five-Forces Model of Industry Competition is the most widely utilized tool to evaluate the competitive environment (Dess, Lumpkin, Eisner, & McNamara, 2014). Dess, Lumpkin, Eisner & McNamara (2014) define Porter’s model
Michael Porter developed a highly useful tool for managers called Porters Five Forces (Rothaermel, 2015). The main focus of Porters Five Forces is to help managers understand their firm’s position and how to help them find a competitive advantage (Rothaermel, 2015). The Five Forces consist of, threat of entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing firms.
Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. Frequently used to identify an industry's structure to determine corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness.
I am also across some of the factors impacting the operation of shipping ports such as:
Competition between companies within the same industry can be daunting. Michael Porter is an economist who came up with what is known as Porter 's five forces model. The model, “Identifies and analyzes five competitive forces that shape every industry and helps determine an industries weaknesses and strengths" (Investopedia). The five forces are entry, power of input suppliers, power of
We look at competition and positioning of these ports with respect to shippers and their geographic location on the European continent. We separately consider their linkages with U.S. ports of entry; finally, we also look at port traffic from the angle of the types of commodity handled. Each analysis produces a functional space of European forwarding ports from one of the three perspectives. All three perspectives are also brought together in a synthetic analysis of inter-port competition.
Westports Holdings Berhad is a Malaysia-based company which involve in managing port operations specifically in container and conventional cargo. It is operating in port development business and port operations segment management. Westports Holdings also provides marine services, rental services and other ancillary services. It consists of dry bulk, break bulk, liquid bulk, cement cargo and roll-on-roll-off (RORO) services for conventional services. Tugboat and pilotage services are available from the marine services. The Company provides internal haulage services to facilitate the movement of containers to and from container yards or on-dock depots (ODD)
Porter five forces analysis is defined as a very effective marketing tool designed in order to assess and evaluate the level of marketing competition within certain operating industry or business, this tool will support marketer to create a proper marketing strategy, it will provide the business with an excellent market view. The Porter’s Five Forces Analysis will display a comprehensive view on marketing. Also, the Porter Forces will display the most attractiveness factors of an Industry. Attractiveness in this context refers to the overall industry profitability. (Porter et al. 2008)
The Market environment is another external sector however unlike the macro environment, which the business has no influence over, the market environment can be manipulated by a business especially one of MRPs prestige and experience. Porter’s Five Forces Model is a reliable tool that the business should make use of to identify aspects of the sector that may cause threats or opportunities to arise.