Michael Porter’s Five Forces

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Michael Porter’s Five Forces by Mind Map: Michael Porter’s Five Forces

1. Workng on contracts with Dealers

2. Suppliers’ Power

2.1. High Raw Material Prices.

2.2. Lack of Transportation

2.3. Concentration of suppliers supplying differentiated products

2.4. There are many small buyers switching costs are high

2.5. Suppliers are well informed about the buyers, their operations and needs

3. Buyers’ Power

3.1. Increasing Demand for Steel.

3.2. Fragmented Coke Suppliers

3.3. Many small operators in the supplying industry supplying standardized products

3.4. Switching costs are low Buyers are well informed about the suppliers, their operations

3.5. prices and quality and need

3.6. Buyer is well aware from other substitute product

4. Intensity of Competition

4.1. Competition from Foreign Players

4.2. Spurt in Merger and Acquisition Activities

4.3. Attractive prices

4.4. Producing quality steel products

4.5. Consistency

4.6. Selection and breadth of offerings

4.7. Meeting customer requirements and delivery schedules

4.8. Multiple state-of-the-art plants

5. Threat of New Entrants

5.1. High Cost of Basic Inputs and Services

5.2. Industry is Capital Intensive

5.3. Government policies are not much favorable for new firm

5.4. Raw material cost is expansive

5.5. Transportation cost is high

5.6. Tax and Legal documentation issues

6. Threat of Substitutes

6.1. Aluminums is a substitute of steel in cars,

6.2. Plastics is a substitute in packaging

6.3. As steel is getting stronger, we need less steel for same purpose

6.4. Carbon

6.5. Fiber


7.1. Manufacturering on order Basis

7.2. Store ready material in warehouses