This website uses cookies to ensure you have the best experience. Learn more

Discussing Optus' Competitive Market Position By Using Porter's Five Forces Model

1707 words - 7 pages

Discuss Optus' competitive market position by using Porter's Five Forces Model

This essay will discuss Optus’ competitive market position through the analysis of Porters Five Forces Model. Optus, Australia's second largest telecommunications company is situated in a constantly changing environment, easily illustrated by Porters Model.

Introduction of Porters Five Forces Model

Porters Five forces model is an analytical tool developed by Michael E. Porter in 1979 whilst he was studying at Harvard Business School. Understanding Ports Five Forces brings to light an industry’s current profitability and develops a framework for making educated calculations for anticipating and influencing the competition. Porter wished to create a universal framework which can be utilized in all industries such as the automobile and performing arts industries. The model has five key components which highlights a market’s competitive intensity and overall attractiveness. The strongest force or forces determine the profitability of the industry and form the basis for the strategies that are utilized by the company. The five components of the model are the degree of rivalry; the threat of new entry; the threat of new substitutes; buyer power and the supplier power. Porter describes the five forces as creating a significant framework for different industries such as the fierce rivalry and strong buyer power in the aircraft industry but with relatively benign threat of entry, threat of substitutes and supplier power. Porter envisioned the model to extend the knowledge of Industrial Organisation. The forces explain how a company organises itself in order to satisfy the needs of the consumers with both quantity and quality, while at the same time maintaining or increasing the profits of the company. However this model does have its’ limitations, Porters Five Forces is not designed for an individual firm but rather for the industry as a whole. With an understanding of Porters Five Forces Model, Optus' competitive market position becomes a simple concept to visualize.

Degree of Rivalry

Rivalry is the first force to consider when analysing the competitiveness of a market. Though considered important, it is crucial to understand that the degree of rivalry is only one of the five forces that influence the competitive state of the market. Profitable markets constantly attract new firms which impacts the overall profitability of the market. Optus is one of the largest telecommunications companies in Australia, second only to Telstra, making up thirty-three percent of the industry. As a significantly large employer of 10, 500 employees and serving 8 million customers, Optus provides a strong degree of rivalry towards the rest of the competition. However, like smaller telecommunications companies, it must depend upon Telstra's infrastructure in order to provide its customers with the quality and support that it advertises. This puts Optus at the mercy of Telstra's...

Find Another Essay On Discussing Optus' Competitive Market Position by Using Porter's Five Forces Model

Reflective piece on usefulness of Porter's Five Forces model

893 words - 4 pages In the first seminar of the term, I was observing how Porter's 5 Forces model (5F) can be used to analyse the strategic business dynamics of the European Forestry/Paper sector in the post 2004 European Union.5F is an analytical framework, which allows competitive dynamics to be systematically appraised in assessing existing and future profitability of markets/industries by analyzing the influence of particular characteristics of each of the five

Porter's Five Forces Model and The Movie Rental Business

916 words - 4 pages or partners better by supplying quality products and virtual service to promote brand lifting, customer feedback, great customer experience, and offering the right product to the targeted market. Porter's Five Forces Model is one of the frameworks that help businesses develop their market strategy and analysis. This paper will focus on the Porter Model to evaluate a prospective market entrance for a potential movie rental business. Therefore, the

Using Porter's five forces to analyse Telstra Australia

821 words - 3 pages Executive SummaryTelstra remains the top dog in the marketThe key payersThe total telecoms service market is segmented according to the major providers Telstra, Optus, Vodafone, as well as a number of other market providers. Detailed revenue, statistics are included separately for Telstra, Optus and Vodafone for the current and previous financial years.Telstra continues to dominate the overall Australian telecom market with about 60% market

Using Porter's five forces to analyse Telstra Australia

808 words - 3 pages achieve this strategy, the following key elements are most critical factors to succeed:1. Enhancement of retail and wholesales segments. Most of Telstra's profit comes from these two segments. Maintaining its market power in the segments by taking the advantage of its current network capacity would set Telstra in a favourable competitive position. Therefore, enhancement of network infrastructure and operation transparent to business customers are

Ryan Air: Analysis using SWOT & Porter's Five Forces

2073 words - 8 pages operating a fleet of six aircraft, employing 350 people, carrying 700 passengers on just five routes , and it had recorded its first ever profit.Over the next couple of years, schedules on the key Dublin-London route wrew increased average air fares were lowered and new routes were launched from Dublin to Birmingham, Glasgow, Manchester, and Gatwick. The number of customers continued to grow, thanks largely to Ryanair's low fares. By 1994,Ryanair

Five Porter's model

536 words - 2 pages Five Porter's ModelThe five forces model was developed by Michael Porter in order to analyse the task environment. According to the model there are five competitive forces that affect a firm: the threat of entry by potential competitors, the power of buyers, the power of suppliers, the threat of substitute products, and the intensity of rivalry between already existing firms. Barriers of entry are factors that prevent the competitors to enter an

Choose the airlines as an industry to apply the Michael Porter's 'five forces' model and discuss how one established airline like SIA should respond to the competitive environment

2109 words - 8 pages QUESTION:The industry analysis is necessary in the strategic marketing planning in order to identify the opportunities and threats in the competitive environment. Choose the airlines as an industry to apply the Michael Porter's 'five forces' model and discuss how one established airline like SIA should respond to the competitive environment, after analyzing the industry.SIA is internationally recognised as one of the world's leading carriers

Five Forces Model

1485 words - 6 pages Professor Michael Porter of the Harvard Business School developed a framework that aids in the development of an organizations competitive advantage. Porter identified five basic forces that act on the organization; I. The bargaining power of suppliers; II. The bargaining power of buyers; III. The threat of potential new entrants; IV. The threat of substitutes; V. The extent of competitive rivalry. The bargaining power

Adidas Case Study: SWOT analysis and Michael Porter's Five Forces Model, including strategic recommendations

2515 words - 10 pages . These sports have been replaced in market share by sports such as baseball, basketball, football, and fitness activities like aerobics. Adidas has not developed the marketing mix to compete in these sports and fitness activities. The participation by women in these sports is growing, yet Adidas has neglected this market by remaining a preferred supplier of sporting equipment to the middle aged male population.Nike and Reebok are two very

Using SWOT, Value Chain, Porter's Five Forces and other variables in Panera Bread Company, USA

2543 words - 10 pages , mission and strategic objectives by using major processes like strategy analysis, strategy formulation, implementation and corporate governance•Analyzing the micro and micro environments of PBC•Using Porter's five forces model and concept of strategy groupings to make PBC have competitive advantage over their competitors.•Using resource base view and value-chain analysis to identify possible opportunities and threats for PBC.2

analysis on 7- eleven using porter's competitve five forces - fourah bay college/ tear 3 - assignment

1251 words - 6 pages sometimes send in proposals without being asked, for standard items, or if the buyers requirements are known (eg) from market exchange or directories (2) INVITATION TO TENDER- the organization may prefer t use a major formalized completive bidding r tendering procedure, in which pre- invitation to tender (ITT), or an invitation to bid for a contract, with the buyer intending to choose the supplier submitting the best proposal or the lowest price. (3

Similar Essays

Lowes’ Porter's Five Forces Competitive Analysis

1272 words - 5 pages by discounting, differentiating and adding extra value on the product or services. High level, intense rivalry may result with profit lost for the company. In most cases, new entrant barriers are high due to the intensity of rivalry (Porter, 2008). Lowes’ Porter's Five Forces Competitive Analysis As relevant to these competitive forces, the common and mutual goal of companies can be explained as better profitability with a greater market share

Porter's Five Forces Essay

803 words - 4 pages . Critics argue that "many industries are hyperactive and hyperactive industries are marked by continuous innovation" (Jeyarathmm, 2008, pg. 78), therefore the Five Forces model has limited application. Conclusion Prior to the introduction of Porter's Five Forces, it is amazing to think that there was no core model that organization's would use to determine strategy in their competitive environment. Now, Porter's Five Forces, which Michael Porter

Porter's Five Forces Essay

2326 words - 9 pages Introduction.'Competitive strategy is the bases on which a business unit might achieve competitive advantage in its market '.There are two factors for a firm to be profitable: the fetching appearance of the industry in which it operates and its position in this industry.The best known and most used set of competitive strategies are Michael Porter's Generic Strategies; he calls these generic strategies because they can be applied to a firm in any

Porter's Five Forces Essay

2255 words - 9 pages few needs of many customers 2. Need-based positioning: serving broad needs of few customers 3. Access-based positioning: serving broad needs of many customers in a narrow market 3. Stockbrokers and Porter’s Five Forces Model The section will examine the competitive landscape in the stockbroker industry by using Porter’s Five Forces Model and identity a position in the industry where the forces are weakest. i) Threat of New Entrants in