Porter and Kotlers Essay Example | Topics and Well Written Essays - 2250 words

Porter and Kotlers - Essay Example A large number of child center in Australia is now on the industry. ABC needs to survive and increase its profit and has come up and decide to merge with Child Care Center Australia (CCCA) and Peppercorn Management Group (PMG). Action done by its managing director are being analyze in this paper. Suggestion where given to help the company succeed on its aim to increase sale, profits and shares and survival in this stiff and increasing competition. What is an industry As defined in userweb.nni.com an "Industry" is way of classifying businesses that have something in common. Firms are included in or excluded from an industry classification based on the degree of similarity in the products they make or sell and types of customers they service, and the marketplace in which they compete. Industry analysis is a type of business research that focuses on the status of an industry or an industrial sector (a broad industry classification, like "manufacturing"). A complete industrial analysis usually includes a review of an industry's recent performance, its current status, and the outlook for the future. Many analyses include a combination of text and statistical data. Based on the article of Themanager.org, Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry. 3 1. Main Aspects of Porter's Five Forces Analysis The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organization's behaviour in a competitive market. These include the following: - The rivalry between existing sellers in the market. - The