Use the company you chose for the discussion board activity in Unit 1 to complete this question. Use Porter’s Five Forces to explore the competitive advantage that this company has in the industry. How does the current Five Forces analysis help explain the current competitive advantage in the industry? How is the value chain used to increase competitive advantage? If it is not used effectively, what adjustments to the current value chain would you suggest to increase the competitiveness of the company?
Porter’s five forces model deal with threats of new entrants, threats of substitution product, competition due to the rivalry, bargaining power of customer and suppliers.
Regarding new entrants, the hotel industry is very open so that I have to focus on customer service. The current competition of the hotel business is low and I can break and emerge as an important hotel service provider. In addition, to reduce the current competition to a very small, I have to recruit very skilled and experienced employees. Since the current hotel industry in our country is not developed, the bargaining power of both suppliers and customers is low. Means I can reach easily to my potential customers and suppliers.